Stock Market Briefs: Johnson & Johnson To Cut 7% Of Workforce, Viacom’s Profit Rises, Apple Sells Few iPhones In Official Chinese Launch, Madoff’s Accountant Pleads Guilty

Madoff’s Accountant Pleads Guilty; Charles Schwab Launches First ETFs; J&J Lays Off 7,000; Sept. Factory Orders Beat Estimates; Cost-Cutting Boosts Viacom’s Profit; iPhone Gets a Chilly Reception in China; October U.S. Auto Sales Grow; Chrysler Profitable At The End of 2011?

• Bernie Madoff’s longtime accountant pleaded guilty to multiple fraud charges related to his Ponzi scheme. David Friehling’s nine-count plea in a New York federal court included securities fraud, investment advisor fraud, making false filings with the Securities and Exchange Commission (SEC) and tax law violations, CNNMoney reported. “I am truly sorry for the suffering of all my victims,” Friehling told the court, maintaining that he “committed these crimes as an independent auditor” and was unaware that he was involved in Madoff’s scam. Friehling, free on a $2.5 million bond, faces a maximum sentence of 114 years in prison.

• The Charles Schwab Corp. (SCHW) launched its first four exchange-traded funds (ETF) yesterday (Tuesday), offering free online trades for its nearly 8 million clients. The company’s first ETF offerings are: Schwab U.S. Broad Market ETF (SCHB), Schwab U.S. Large-Cap ETF (SCHX), Schwab U.S. Small-Cap ETF (SCHA) and Schwab International Equity ETF (SCHF). The broker will offer four more ETFs in December: Schwab U.S. Large-Cap Growth ETF (SCHG), Schwab U.S. Large-Cap Value ETF (SCHV), Schwab International Small-Cap Equity ETF (SCHC) and Schwab Emerging Markets Equity ETF (SCHE).

• Johnson & Johnson (JNJ) said it would lay off 6% to 7% of its workforce of 117,000, or at least 7,000 people as part of a restructuring plan. The company, which on Oct.13 said its annual sales fell 5%, expects a pre-tax savings of $1.4 billion to $1.7 billion and to incur a charge between $1.1 billion and $1.3 billion. “These types of changes are difficult under any circumstances, and will have a very personal impact on people who have been dedicated to the mission of Johnson & Johnson,” said Chairman and Chief Executive Officer William Weldon. “We recognize their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process.”

• Factory orders in the United States gained a stronger-than-expected 0.9% in September amid shrinking inventories, the Commerce Department said yesterday (Tuesday).  Analysts were expecting a gain of 0.8%, Reuters reported. “It’s a solid rise in orders. They are consistent with manufacturing growing again,” said James O’Sullivan, chief economist for MF Global Ltd. (MF). “Inventories are still falling so there is more room for orders and production to grow.”

• Viacom Inc.’s (VIA) saw its profit rise 15% in its second quarter, thanks to cost-cutting initiatives designed to offset declining revenue, particularly in its Paramount film division. The media giant reported a net income of $463 million, or 76 cents per share, compared to $401 million, or 65 cents per share in the same period last year. Revenue fell 2.7% to $3.32 billion, and Paramount’s revenue slipped 6.5% to $1.2 billion amid continuing erosion of DVD sales, which offset growth of 16% in its worldwide theatrical revenue from summer blockbusters like “G.I. Joe: The Rise of Cobra.” Still, it sees demand for television advertising picking up leading into the holiday season. “There is demand out there at the moment,” Philippe Dauman, Viacom’s president and chief executive officer said in a conference call with analysts. Additionally, prices for the last-minute, fourth quarter ads are up “double-digit” percentages above ads sold in advance.

• Apple Inc.’s (AAPL) iPhone sold just 5,000 units in the first four days on the market in China, China Unicom Ltd. (CHU) said. That pales in comparison to the smartphone’s U.S. opening weekend in 2007, in which 146,000 units were sold. Its likely that China’s vast gray market had a lot to do with it: In August, The Wall Street Journal said there was an estimated 1.5 million gray market iPhones, citing research firm BDA China Ltd. Unlike China Unicom’s iPhones, gray market units include wi-fi capabilities, which were cut in Unicom’s version in accordance with Chinese regulations. Still, China Unicom is confident about the future. “We are satisfied with iPhone sales so far, and we aim to have an additional 1 million new 3G subscribers each month in the near future,” China Unicom Chairman Chang Xiaobing told Reuters.

• The post- “Cash for Clunkers” market in the United States so far has been good to automakers: Ford Motor Co.’s (F) October year-on-year sales gained 3%. Meanwhile, Nissan Motor Co. Ltd. (NSANY.PK) said its sales grew 5.6%, General Motors Co. (GRM) reported a 5.3% gain and Toyota Motor Corp.’s (TM) sales grew 1%.

• Chrysler Group LLC expects to break even in 2010 and be profitable by the end of 2011, three people familiar with the matter told Bloomberg News. Chief Executive Officer Sergio Marchionne may reveal these goals at a presentation before a crowd of 300 that includes 150 financial and auto-industry analysts today (Wednesday), the people said. “We are not bleeding as people think we are,” Marchionne said in a presentation last month. Chrysler’s U.S. rival Ford Motor Co. (F) said on Monday it expects to be “solidly profitable” in 2011.

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