Galaxy phones power Samsung to record $8.3 billion profit

SEOUL (Reuters) – Samsung Electronics, the world leader in mobiles and memory chips, said it likely earned a quarterly profit of $ 8.3 billion, as it sold close to 500 handsets a minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products.

That run of five straight record quarters may end in January-March on weaker seasonal demand, though a strong pipeline of smartphones – the South Korean group’s biggest earner – and improving chip prices have eased concerns that earnings growth could slow this year, powering Samsung shares to record levels last week.

The stock closed down 1.3 percent on Tuesday, in a Seoul market that fell 0.7 percent.

“Investors are a bit concerned that Samsung’s momentum may slow in the first half. The smartphone market is unlikely to sustain its strong growth as advanced markets are nearing saturation despite growth in emerging countries,” said Kim Sung-soo, a fund manager at LS Asset Management.

Samsung has outpaced Apple – its biggest rival and biggest customer – despite the U.S. firm’s launch of the latest iPhone 5, with sales momentum boosted by its Galaxy Note II phone-cum-tablet, or ‘phablet’, in the fourth quarter. IPhone 5 sales were a little below expectations, analysts said.

While Apple rolled out just a single new smartphone last year globally, Samsung bombarded the market with 37 variants tweaked for regional and consumer tastes, from high-end smartphones to cheaper low-end models. By comparison, Taiwan’s HTC Corp released 18 models, Nokia 9 and LG Electronics 24.

HTC on Monday said its fourth-quarter profit slumped more than 90 percent as its sales continue to trail those of the Galaxy range and the iPhone.

Samsung, valued at close to $ 230 billion, gave its October-December earnings guidance on Tuesday, ahead of the full earnings release expected by January 25.

A HIGH NOTE

Shipments of Samsung’s flagship Galaxy S III, which overtook the iPhone 4S in the third quarter to become the world’s best-selling smartphone, are likely to have slipped to around 15 million in the last quarter from 18 million in July-September, analysts estimate, but sales of around 8 million Galaxy Note II ‘phablets’ should more than make up for that – pushing overall smartphone shipments to around 63 million.

“The Note was selling well, boosting fourth-quarter profit, while iPhone 5 sales were less than expected,” said Song Myung-sub, an analyst at HI Investment & Securities.

“Samsung’s profit will drop in the current quarter because of decreased phone profits. It will launch the Galaxy S IV only in March or April so, without new models, phone sales prices will fall this quarter. For the whole year, Samsung will launch new models faster than Apple and have the upper hand in the smartphone market.”

The new Galaxy, widely expected to be released within months, may have an unbreakable screen and full high-definition quality resolution boasting 440 pixels per inch, as well as a better camera and a more powerful processor.

“Samsung’s smartphone shipments are likely to grow even in a seasonally weak first quarter. The early launch of the Galaxy S IV would drive second-quarter growth momentum,” said BNP Paribas Securities analyst Peter Yu, who predicts Samsung’s 2013 operating profit will grow 25 percent to almost $ 35 billion.

Samsung is expected to increase its smartphone sales by more than a third this year, and widen its lead over Apple as it offers a broader range of mobile devices, said Neil Mawston, executive director at market researcher Strategy Analytics, which forecasts Samsung will sell 290 million smartphones this year, up from a projected 215 million in 2012.

Kim Sung-in, an analyst at Kiwoom Securities, sees Samsung shipping 320 million smartphones this year and doubling sales of its tablets to 32 million.

STRONG NUMBERS

Samsung said its October-December operating profit jumped 89 percent to 8.8 trillion won from a year ago, just ahead of a forecast for 8.7 trillion won by 16 analysts surveyed by Reuters. That is 8.6 percent higher than its previous record of 8.1 trillion won in July-September.

Analysts expect profits from the mobile division to more than double from last year and increase slightly from the previous quarter, to around 5.8 trillion won. A recovery in chip prices and flat screens should also boost component earnings, helped by booming sales of mobiles carrying Samsung’s chips, micro-processors and flat screens.

Reflecting the strong outlook, shares in Asia’s most valuable technology stock last week hit a life high of 1.584 million won ($ 1,500). The stock gained 44 percent last year, topping Apple’s 31 percent increase and easily outpacing a 9 percent rise on the broader Korean market.

Samsung, led by founding family member and chairman Lee Kun-hee, is embroiled in a patent legal battle with Apple globally. Apple won a $ 1.05 billion verdict against Samsung in August, but has failed to win a permanent sales ban on several, mostly older Samsung models.

(Additional reporting by Joyce Lee and Narae Kim; Editing by Ian Geoghegan)

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2nd Winehouse inquest confirms alcohol death

LONDON (AP) — A second coroner's inquest confirmed Tuesday that Amy Winehouse died of accidental alcohol poisoning when she resumed drinking after a period of abstinence.

Coroner Shirley Radcliffe ruled that the 27-year-old soul singer "died as a result of alcohol toxicity" and recorded a verdict of death by misadventure. She said there were no suspicious circumstances.

She said that Winehouse "voluntarily consumed alcohol — a deliberate act that took an unexpected turn and led to her death."

The Grammy-winning singer was found dead at her London home on July 23, 2011.

Radcliffe said a postmortem had found that Winehouse had a blood alcohol level five times the legal driving limit, and above a level that can prove fatal.

She said that that much alcohol could affect the central nervous system so much that a patient could "fall asleep and not wake up."

Winehouse's family did not attend the 45-minute inquest, which was held after the original coroner was found to lack the proper qualifications for the job.

The coroner later resigned after her qualifications were questioned. She had been hired by her husband, the senior coroner for inner north London.

The first inquest in 2011 produced an identical verdict.

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The New Old Age Blog: Who Should Receive Organ Transplants?

Joe Gammalo had been contending with pulmonary fibrosis, a scarring of the lungs, for more than a decade when he came to the Cleveland Clinic in 2008 seeking a lung transplant.

“It had gotten to the point where I was on oxygen all the time and in a wheelchair,” he told me in an interview. “I didn’t expect to live.”

Lung transplants are a dicey proposition, involving a huge surgical procedure, arduous follow-up, the lifelong use of potent immunosuppressive drugs and high rates of serious side effects. “It’s not like taking out an appendix,” said Dr. Marie Budev, the medical director of the clinic’s lung transplant program.

Only 50 to 57 percent of all recipients live for five years, she noted, and they will still die of their disease. But there’s no other treatment for pulmonary fibrosis.

Some medical centers would have turned Mr. Gammalo away. Because survival rates are even lower for older patients, guidelines from the International Society for Heart and Lung Transplantation caution against lung transplants for those over 65, though they set no age limit.

But “we are known as an aggressive, high-risk center,” said Dr. Budev. So Mr. Gammalo was 66 when he received a lung; his newly found buddy, Clyde Conn, who received the other lung from the same donor, was 69.

You can’t mistake the trend: A graying population and revised policies determining who gets priority for donated organs, have led to a rising proportion of older adults receiving transplants.

My colleague Judith Graham has reported on the increase in heart transplants, but the pattern extends to other organs, too.

The number of kidney transplants performed annually on adults over 65 tripled between 1998 and last year, according to data from the Scientific Registry of Transplant Recipients. In 2001, 7.4 percent of liver transplant recipients were over 65; last year, that rose to 13 percent.

The rise in elderly lung transplant candidates is particularly dramatic because, since 2005, a “lung allocation score” puts those at the highest mortality risk, rather than those who’ve waited longest, at the top of the list.

In 2001, about 3 percent of those on the wait list and of those transplanted were over 65; last year, older patients represented almost 18 percent of wait-listed candidates and more than a quarter of transplant recipients. (Medicare pays for the surgery, though patients face co-pays and considerable out-of-pocket costs, including for drugs and travel.)

The debate has grown, too: When the number of adults awaiting transplants keeps growing, but organ donations stay flat, is it desirable or even ethical that an increasing proportion of recipients are elderly?

Dr. Budev, who estimated that a third of her program’s patients are over 65, votes yes. As long as a program selects candidates carefully, “how can you deny them a therapy?” she asked. So the Cleveland Clinic has no age limit. “We feel that everyone should have a chance.”

At the University of Michigan, by contrast, the age limit remains 65, though Dr. Kevin Chan, the transplant program’s medical director, acknowledged that some fit older patients get transplanted.

“You can talk about this all day — it’s a tough one,” Dr. Chan said. Younger recipients have greater physiologic reserve to aid in the arduous recovery; older ones face higher risk of subsequent kidney failure, stroke, diabetes and other diseases, and, of course, their lifespans are shorter to begin with.

Donated lungs, fragile and prone to injury, are a particularly scarce commodity. Last year, surgeons performed 16,055 kidney transplants, 5,805 liver transplants and 1,949 heart transplants. Only1,830 patients received lung transplants.

“What if there’s a 35-year-old on a ventilator who needs the lung just as much?” Dr. Chan said. “Why should a 72-year-old possibly take away a lung from a 35-year-old?” Yet, he acknowledged, “it’s easy to look at the statistics and say, ‘Give the lungs to younger patients.’ At the bedside, when you meet this patient and family, it’s a lot different.”

These questions about who deserves scarce resources — those most likely to die without them? or those most likely to live longer with them? — will persist as the population ages. They’re also likely to arise when the International Society for Heart and Lung Transplantation begins working towards revised guidelines this spring. (I’d also like to hear your take, below.)

Lots of 65- and 75-year-olds are very healthy. Yet transplants themselves can cause harm and there’s no backup, like dialysis. Without the transplant, they die. But when the transplant goes wrong, they also die.

More than four years post-transplant, the Cleveland Clinic’s “lung brothers” are success stories. Mr. Conn, who lives near Dayton, Ohio, can’t walk very far or lift more than 10 pounds, but he works part time as a real-estate appraiser and enjoys cruises with his wife.

Mr. Gammalo, a onetime musician, has developed diabetes, like nearly half of all lung recipients. But he went onstage a few weeks back to sing “Don’t Be Cruel” with his son’s rock band, “a highlight of both our lives,” he said.

Yet when I asked Mr. Conn, now 73, how he felt about having priority over a younger but healthier person, he paused. “It’s a good question,” he said, to which he had no answer.

---

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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Noise requirements proposed for hybrid and electric vehicles

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From gang member to team player

SAN FRANCISCO — Luis Aroche learned about violence at Leonard R. Flynn Elementary School, across from the projects where his friend Carl lived.

He remembers sitting down at his desk and seeing his teacher, Mrs. Foster, in tears. His class had just finished the Pledge of Allegiance.

"Carl was playing on the swings and got shot," Aroche said. "And died. Kindergarten. He got found laying in a pool of blood in the park," Aroche paused. Swallowed. Started up again. "He was my desk buddy. He would go with me to the bathroom. And now, Carl wasn't there.

"That was my first experience of loss. And I didn't understand it. To this day, I don't understand it."

Aroche since has become something of an expert on violence — as victim, perpetrator and now as part of a hoped-for solution. Last year, San Francisco Dist. Atty. George Gascon hired the former gang member to be his office's first "alternative sentencing planner," part of an effort to keep offenders from ending up back behind bars.

The position, criminal justice experts say, has no equivalent in any prosecutor's office in the country.

And Aroche is as singular as his job. An Aztec skull tattoo stretches down his right forearm to his hand, its grimace partly wiped away by laser removal. The day his juvenile record was sealed, he says, was the happiest of his life.

Today, he helps prosecutors figure out who among San Francisco's low-level offenders deserves a jail cell and who deserves a second chance.

He knows a lot about both.

::

If you were Aroche, 12 years old and living in the Mission District in 1990 — when gangs and crack cocaine meant funerals were as commonplace as quinceañeras — you got a tattoo, cut school and drank beer. You thought a stint in Pelican Bay State Prison was like going off to "Stanford or Yale." You practiced how to sit and talk and smoke like the toughest prisoners.

"We would learn how to iron our clothes using a comb, 'cause that's how you iron your pants in prison," Aroche said. "You iron it with the teeth of the comb … and then you put it underneath the mattress."

Aroche's first tattoo was a small cross on his left hand, in the soft web between thumb and forefinger. He got it in an alleyway not far from the studio apartment where he slept on the floor with his five brothers, three sisters, the occasional niece or nephew. His parents got the bed in the corner.

His Salvadoran mother was a chambermaid at a Fisherman's Wharf motel, his Puerto Rican father a security guard in the Navy shipyards.

And his older brothers? They would disappear for years. Aroche didn't know why until his father took him to visit San Quentin State Prison. They were "main men" in a notorious Northern California prison gang. When they were out, they were "the mayors of the Mission."

By the time Aroche was 15, he was drinking so much and incarcerated so often that he gave himself a test every night before he went to sleep. If he put out his hand and felt warm, smooth drywall, he knew he was home. If he felt cold, slick concrete, he was in custody.

One night he ended up in the hospital. He'd been drunk, hanging out in Lucky Alley, when a car drove up and the doors flew open. Aroche saw his friend get sliced with a machete. Gunshots rang out.

"And I remember some guy grabbing me and hitting me with a crowbar and stabbing me in my stomach," he said. "And I could feel the pierce of my stomach, just ripping me open.... And I thought, this is it. This is it. This is my life."

::

At the computer in his spartan office at the Hall of Justice, Aroche is poring over the official tale of another life in the balance: a 28-year-old woman on a downward spiral.

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NBC execs say it's not a 'shoot-'em-up' network

PASADENA, Calif. (AP) — NBC executives said Sunday they are conscious about the amount of violence they air in the wake of real-life tragedies like the Connecticut school shooting, but have made no changes in what has gone on the air or what is planned.

NBC isn't a "shoot-'em-up" network, said network entertainment President Jennifer Salke.

The level of violence on television, in movies and video games has been looked at as a contributing factor — along with the availability of guns and a lack of mental health services — in incidents such as the Dec. 14 attack in a Newtown, Conn., school where 20 first-graders and six educators were killed.

Like many in Hollywood, NBC questioned a link between what is put on the air and what is happening in society.

"It weighs on all of us," said NBC Entertainment Chairman Robert Greenblatt. "Most of the people at this network have children and really care about the shows that we're putting out there. It's always something that's been on our mind but this brought it to the forefront."

NBC hasn't needed to take any tangible steps like minimizing violence in its programming or deemphasizing guns, Salke said, because NBC didn't have much violence on the air. It might be different "if we were the 'shoot-'em-up' network, she said.

She didn't name such a network, but said violence might be an issue on a network that airs many crime procedural shows. That's a staple of CBS' lineup. Greenblatt, who was head of Showtime when the "Dexter" series about a serial killer was developed, said CBS' "Criminal Minds" is "worse than 'Dexter' ever was."

Within an hour after both executives spoke, NBC showed reporters at a news conference highlights of its show "Revolution" that included a swordfight, a standoff between two men with guns, a bloodied man, a building blown up with a flying body and a gunfight.

Later clips of the upcoming series "Deception" featured several shots of a bloodied, dead body.

NBC also is developing a drama, "Hannibal," based on one of fiction's most indelible serial killers, Hannibal Lecter. An airtime for the show hasn't been scheduled, but it could come this spring or summer.

Salke said there is more violence in Fox's upcoming drama "The Following," also about a serial killer, than there will be in "Hannibal." Much of the violence in the upcoming NBC show, created by former "Heroes" producer Bryan Fuller, is implied and not gratuitous.

"We respect the talent and like what he is doing, so we are standing behind him," Salke said. She said there's been a spate of programs about creepy killers because they've been such indelible characters.

Greenblatt said he wasn't trying to be glib, but one of the best tonics for people upset about real-life violence is to watch an episode of NBC's "Parenthood." He said it's a great example of a family that loves each other and grapples with many issues.

"Ultimately, I think you feel good at the end of the day," he said.

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Alarm in Albuquerque Over Plan to End Methadone for Inmates

Mark Holm for The New York Times

Officials at New Mexico’s largest jail want to end its methadone program. Addicts like Penny Strayer hope otherwise.

ALBUQUERQUE — It has been almost four decades since Betty Jo Lopez started using heroin.

Her face gray and wizened well beyond her 59 years, Ms. Lopez would almost certainly still be addicted, if not for the fact that she is locked away in jail, not to mention the cup of pinkish liquid she downs every morning.

“It’s the only thing that allows me to live a normal life,” Ms. Lopez said of the concoction, which contains methadone, a drug used to treat opiate dependence. “These nurses that give it to me, they’re like my guardian angels.”

For the last six years, the Metropolitan Detention Center, New Mexico’s largest jail, has been administering methadone to inmates with drug addictions, one of a small number of jails and prisons around the country that do so.

At this vast complex, sprawled out among the mesas west of downtown Albuquerque, any inmate who was enrolled at a methadone clinic just before being arrested can get the drug behind bars. Pregnant inmates addicted to heroin are also eligible.

Here in New Mexico, which has long been plagued by one of the nation’s worst heroin scourges, there is no shortage of participants — hundreds each year — who have gone through the program.

In November, however, the jail’s warden, Ramon Rustin, said he wanted to stop treating inmates with methadone. Mr. Rustin said the program, which had been costing Bernalillo County about $10,000 a month, was too expensive.

Moreover, Mr. Rustin, a former warden of the Allegheny County Jail in Pennsylvania and a 32-year veteran of corrections work, said he did not believe that the program truly worked.

Of the hundred or so inmates receiving daily methadone doses, he said, there was little evidence of a reduction in recidivism, one of the program’s main selling points.

“My concern is that the courts and other authorities think that jail has become a treatment program, that it has become the community provider,” he said. “But jail is not the answer. Methadone programs belong in the community, not here.”

Mr. Rustin’s public stance has angered many in Albuquerque, where drug addiction has been passed down through generations in impoverished pockets of the city, as it has elsewhere across New Mexico.

Recovery advocates and community members argue that cutting people off from methadone is too dangerous, akin to taking insulin from a diabetic.

The New Mexico office of the Drug Policy Alliance, which promotes an overhaul to drug policy, has implored Mr. Rustin to reconsider his stance, saying in a letter that he did not have the medical expertise to make such a decision.

Last month, the Bernalillo County Commission ordered Mr. Rustin to extend the program, which also relies on about $200,000 in state financing annually, for two months until its results could be studied further.

“Addiction needs to be treated like any other health issue,” said Maggie Hart Stebbins, a county commissioner who supports the program.

“If we can treat addiction at the jail to the point where they stay clean and don’t reoffend, that saves us the cost of reincarcerating that person,” she said.

Hard data, though, is difficult to come by — hence the county’s coming review.

Darren Webb, the director of Recovery Services of New Mexico, a private contractor that runs the methadone program, said inmates were tracked after their release to ensure that they remained enrolled at outside methadone clinics.

While the outcome was never certain, Mr. Webb said, he maintained that providing methadone to inmates would give them a better chance of staying out of jail once they were released. “When they get out, they won’t be committing the same crimes they would if they were using,” he said. “They are functioning adults.”

In a study published in 2009 in The Journal of Substance Abuse Treatment, researchers found that male inmates in Baltimore who were treated with methadone were far more likely to continue their treatment in the community than inmates who received only counseling.

Those who received methadone behind bars were also more likely to be free of opioids and cocaine than those who received only counseling or started methadone treatment after their release.

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Air travel in 2012 was the safest since 1945, group says

Airfares grew and airline seats shrunk, but much more important was the good news about flying in 2012: It was the safest year for air travel since 1945.

The world's airlines reported only 23 accidents — including passenger and cargo flights — resulting in 475 fatalities last year, compared with the 10-year average of 34 accidents and 773 fatalities a year, according to Aviation Safety Network, a private online research group in the Netherlands.

The declining accident numbers are the result of several efforts by international aviation groups to require audits of airlines around the world to comply with safety standards, said Harro Ranter, president of the network.

"I think all of these efforts combined are paying off," he said.

The International Civil Aviation Organization, an agency of the United Nations, has not released its 2012 statistics but it previously noted that airline accidents have been on the decline.

The network's database shows only two fatal commercial airline accidents in the U.S. last year, resulting in two deaths.

The worst accident of the year took place June 3 when an MD-83 jetliner flown by Nigeria-based Dana Air crashed on approach to Lagos, killing 153 onboard and 10 people on the ground.

In fact, 22% of all fatal airline accidents last year occurred in Africa, even though the continent generates about 3% of the world's airline departures, according to Aviation Safety Network.

Hotel chains targeted by NRA critics

National Rifle Assn. opponents are criticizing two of the world's biggest hotel companies because they give discounts to NRA members.

Global advocacy site Avvaz.com has urged its followers to go on Facebook and sound off against Best Western International and Wyndham Hotel Group for affiliating with the NRA. (Avvaz means "voice" in several European, Middle Eastern and Asian languages.)

Wyndham operates the Ramada, Days Inn, Super 8, Travelodge and Howard Johnson hotels, among others. Best Western is one of the world's largest hotel chains, with more than 4,000 hotels in about 100 countries.

"It's time for mainstream companies like Wyndham Hotels to get out of bed with the extremist NRA," said Joseph Huff-Hannon, a senior campaigner at Avvaz.

On Facebook, Wyndham has responded to negative comments about its connection to the NRA with the following statement:

"Wyndham Worldwide is a hospitality company focused on our service promise to be responsive, be respectful and deliver great experiences to our customers, guests, partners and communities, as well as to each other. As part of our company's core values, we serve diverse individuals and organizations."

Best Western has not responded to the Facebook criticism, but it has received some comments of support for its NRA connections.

"Thanks for supporting the Constitution and the NRA," one person wrote on the hotel's Facebook page.

TSA defends airport screeners

The Transportation Security Administration says airport screeners are not sitting around giggling at naked images of travelers.

Such unprofessional behavior by officers who look at images made by full-body scanners is unlikely because screeners sit alone in private rooms, trying to spot weapons hidden beneath clothes of screened passengers, the TSA said.

"The resolution room is used only for the viewing of the images and is not a gathering place or break room for other officers as the officer viewing the images has to be focused in order to prevent any dangerous items from entering the airport," the TSA said in an online post last week.

The TSA made the statement in response to a post supposedly written by a former TSA screener on the blog Taking Sense Away.

The author of the blog said he had witnessed "a whole lot of officers laughing and clowning in regard to some of your nude images, dear passenger."

hugo.martin@latimes.com

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NHL, union reach tentative agreement

NHL Commissioner Gary Bettman, right, and deputy commissioner Bill Daly speak to reporters in New York last month. (Mary Altaffer / AP Photo / January 6, 2013)

From the Associated Press

January 6, 2013, 3:29 a.m.

NEW YORK—

The NHL and the players' association said they reached a tentative agreement early Sunday to end a nearly four-month-old lockout that threatened to wipe out the season.

A marathon negotiating session that lasted more than 16 hours, stretching from Saturday afternoon until just before dawn Sunday, produced a 10-year deal that still must be ratified by the players.

After the sides stayed mostly apart for two days, following late-night talks that turned sour, federal mediator Scot Beckenbaugh worked virtually around the clock to get the sides back to the bargaining table.

This time it worked — on the 113th day of the work stoppage.

Time was clearly a factor, with the sides facing a deadline of Thursday or Friday to reach a deal that would allow for a 48-game season to start a week later. NHL Commissioner Gary Bettman had said the league could not allow a season of fewer than 48 games per team.

All games through Jan. 14, along with the All-Star game, have been canceled, claiming more than 50 percent of the original schedule.

It is expected that teams will only play opponents within their conference this season.

Without an agreement, the NHL faced the embarrassment of losing a season due to a labor dispute for the second time, something that has never happened in another North American sports league. The 2004-05 season was wiped out while the sides negotiated hockey's first salary cap.

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News Summary: Tablet-tailored search engine debuts

TAILORED FOR TABLETS: Izik is billed as the first search designed especially for iPads and tablet computers running on Google Inc.‘s Android software. Free Izik apps for those devices were released Friday.

CAPSULE CATERING: For the more visual format of tablets, Izik displays search results in rows of capsules that can be easily scrolled with the swipe of a finger. This contrasts to showing a stack of blue links, the industry standard for laptops and desktops.

GOODBYE GOOGLE? Blekko, the maker of Izik, hopes people will break the Google search habit as tablets supplant traditional computers for Web surfing.

Wireless News Headlines – Yahoo! News

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