Blackhawks' streak at 21 with overtime win over Blue Jackets

Chalk one up for the "slug defenseman."

Brent Seabrook's goal in overtime kept the Blackhawks' record-breaking streak alive as they edged the Blue Jackets 4-3 Friday night at the United Center to remain without a regulation loss this season. At 18-0-3, the Hawks keep piling up the points, securing 39 of a possible 42 this season.

Friday night's hero — with a little help from his friends — was Seabrook, who took a pass from Jonathan Toews 3 minutes, 23 seconds into overtime and beat Blue Jackets goaltender Steve Mason for the game-winner.

"(Toews) is good — he's a hell of a player," Seabrook said, giving credit to his captain. "He usually likes to shoot low and I think Mason was probably thinking he was going to shoot it. (Toews) had a slug defenseman (in me) going down on the off side so he made a great pass. I don't think the Blue Jackets defenseman, Mason or I expected it to come. Somehow he saw me and made a great pass.

"He didn't look at me once and I didn't yell. He's pretty good in those situations so I just let him do his thing. I don't think I shot the puck, it was such a hard pass it hit my stick and just bounced in."

Against a banged up and usually bumbling Blue Jackets squad, the Hawks increased their points streak over the course of two seasons to 27 consecutive games — third-longest in NHL history.

Viktor Stalberg, Patrick Sharp and Bryan Bickell had goals in regulation and Ray Emery earned the victory in net for the Hawks.

Vinny Prospal, Artem Anisimov and Ryan Johansen scored for the Blue Jackets but it wasn't enough. The Blue Jackets, who entered the game with the fewest points in the league, were without defensemen James Wisniewski, Jack Johnson and John Moore and forwards Derick Brassard and Brandon Dubinsky but fought gamely.

A night after the Hawks opened their victory over the Blues with a Toews goal just 10 seconds into the game, the Blue Jackets struck quickly when Prospal jumped on a big rebound Emery yielded off a Derek Dorsett shot and fired it into the open net with 31 seconds elapsed.

Stalberg later continued his mastery over the Blue Jackets with his 11th goal in his 15th game against them when the winger tapped in a puck in the crease during a scramble.

"We're finding ways to really get it done," Stalberg said. "It's pretty amazing to be a part of a run like this. It seems like it hasn't gotten to our heads at all. We're staying with it … and that's all we can do right now."

The Jackets kept coming and took the lead when Anisimov's shot from the point deflected off the Hawks' Daniel Carcillo and bounded past Emery.

Late in the second, the Hawks' offense kicked into gear. Sharp evened the score at 2-2 when his backhander from the left circle somehow made it through Mason's pads and trickled across the goal line.

Bickell's splendid individual effort put the Hawks ahead just less than a minute later. The winger stripped Anisimov of the puck, skated in two-on-one with Stalberg and rifled a wrist shot from the left dot past Mason to the stick side.

After Johansen tied it midway through the third, the goalies held and the game went to overtime where Toews and Seabrook won it.

"(The Blue Jackets are) a hard-working team," Seabrook said. "They play 60 minutes hard and you have to come to play this team hard every time. There are no easy games in this league and you never can take a night off. I thought we fought hard on the second part of a back-to-back and it was good to get the win."

ckuc@tribune.com

Twitter @ChrisKuc

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Judge cuts Apple award versus Samsung, sets new damages trial

(Reuters) - Apple Inc had a major setback in its ongoing mobile patents battle with Samsung Electronics on Friday, as a federal judge slashed a $1.05 billion jury award by more than 40 percent and set a new trial to determine damages.

Apple won the award last year against Samsung in what was the biggest and highest-profile of a number of legal trials around the world, centered on the use and alleged abuse of patents in a highly competitive mobile market.

The iPhone maker convinced the jury that the Korean company, which in 2012 overtook Apple as the global smartphone leader, had infringed on its iPhone and iPad patents.

"We are pleased that the court decided to strike $450,514,650 from the jury's award," the Korean company said in a statement. "Samsung intends to seek further review as to the remaining award."

Apple declined to comment.

Friday's ruling by Judge Lucy Koh of the U.S. District Court Northern District of California in San Jose means the two mobile electronics companies may once again square off in a California court to decide how much of the $450.5 million struck from the damages, associated with 14 Samsung products, should stand.

Koh said the jury had incorrectly calculated part of the damages and that a new trial was needed to determine the actual, final dollar amount. That could end up less than or more than the original $450.5 million set by the jury.

Koh, rejecting Apple's motion for an increase in the jury's damages award, ordered a new trial on damages for the 14 devices, which include the Galaxy SII. The jury's award to Apple for 14 other separate products, totaling almost $599 million, was maintained.

"The court has identified an impermissible legal theory on which the jury based its award and cannot reasonably calculate the amount of excess while effectuating the intent of the jury," Koh said in her ruling.

Apple and Samsung account for one in two mobile phones sold. They also rely on each other for components and business.

Their legal tussle has been viewed as a proxy war between Apple and Google Inc as Samsung's flagship Galaxy smartphones and tablets run on Google's Android operating system.

Shares in Apple closed down 2.5 percent at $430.47 on Nasdaq.

(Reporting by Ben Berkowitz; Editing by Gary Hill and Richard Chang)

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Heat top Grizzlies 98-91 for 13th straight win

MIAMI (AP) — LeBron James endured his worst shooting night of the season, and still delivered the biggest basket of the game.

That's how things are going these days for the Miami Heat.

Dwyane Wade scored 22 points and set up James for a critical 3-pointer in the final half-minute, and the Heat extended their winning streak to 13 games by beating the Memphis Grizzlies 98-91 on Friday night.

"I thought this was one of our better wins of the season," Heat coach Erik Spoelstra said. "It was tough. We had to work for everything. We had to find a different way to win, deal with frustration ... and then make some plays down the stretch."

On a night when he shot just 4 for 14, James finished two rebounds shy of a triple-double, with 18 points and 10 assists. Shane Battier scored 14, Chris Bosh added 13 and Ray Allen had 10 for Miami, which snapped Memphis' eight-game winning streak.

But down the stretch, James — who had 14 points, four rebounds and four assists in the fourth quarter alone — was simply too much to handle.

"He made the big shot and that's all that matters," said Memphis' Marc Gasol, who led all scorers with 24. "He wasn't having the usual (numbers) he normally gets. I think we did a good job. He took a shot like he's supposed to and made it so kudos, move on."

Gasol tied the game with a pair of free throws with 2:44 left, before the Heat scored the next five — and quickly — to build a bit of breathing room. Bosh had a three-point play, and Wade took off in transition for a slam that put Miami up 90-85.

Memphis wasn't done. Gasol made two more free throws, then scored off a dribble-drive with 42.5 seconds left to get the Grizzlies within 90-89.

But that was the last gasp.

On the next Miami possession, James hit a 3-pointer with 24 seconds remaining, and the Heat made free throws from there to close out the win.

"I've got confidence I'm going to knock it down, just like all the other ones I've missed," James said. "I had confidence in those too, but they just don't go down. That's how the ball goes sometimes. But I'm always confident in my next shot. D-Wade gave me a great pass and I was able to knock it down."

The Grizzlies got 14 points from Zach Randolph, who said he was bothered throughout after turning his left ankle on the game's first possession. Mike Conley added 14 for Memphis, which got 10 from Quincy Pondexter.

"I have no problem with the game," Grizzlies coach Lionel Hollins said. "We were right there. They just made a few more plays than we did down the stretch."

For the Heat, this week was filled with attention for things like pregame dunking exhibitions and their version of a "Harlem Shake" video — which generated more than 5 million views on YouTube in about 24 hours of being posted.

Then came a basketball game, the likes of which had not been seen in the NBA for almost 20 years.

According to STATS LLC, the most recent time before Friday that there was a game between two teams that were carrying at least 12- and eight-game winning streaks was Dec. 3, 1993, when Atlanta (which had won nine straight) beat Houston (which had won 15 straight).

In fact, the Heat-Grizzlies game was just the eighth in NBA history pitting two teams with active winning streaks of at least eight in a row.

Want more significance? Spoelstra and Hollins were announced earlier in the day as the Eastern and Western Conference coaches of the month, respectively. And news came just before tipoff that James was picked yet again as the East's player of the month, making him 4-for-4 in that department this season.

"Just a residual of team success," Spoelstra said.

Added Hollins: "I'm the head coach and I get the credit and I get the blame, but those guys have been playing extremely well ... coming together with all the turmoil and all the chaos that we've had."

So of course, in a game between the NBA's two hottest teams, the start was ice cold. The teams combined to miss 23 of their first 32 shots.

And for James, things were downright frigid.

After the best shooting month of his career — the three-time MVP made 64 percent of his shots in February, the best month of any NBA player with 200 attempts since Kareem Abdul-Jabbar shot 65 percent in March 1983 — James' run in March started in a decidedly different manner.

James made a 3-pointer on his first attempt of the night, then missed his next eight tries, and had just four points after three quarters.

A dunk with 9:19 left in regulation was just his second made field goal of the night, and he hit a runner midway through the fourth to reach double-digit scoring for the 475th straight regular-season game, going back to Jan. 6, 2007.

"You won't see that happening too many times," Wade said. "It was great that on a night where he didn't have it going offensively, he had trust in his guys and didn't force up 20-odd shots. He played to pass and he still was aggressive. We'll take it. We'll take it, him getting those numbers and us getting the win."

NOTES: The Heat had the blessing of team officials when they took a half-hour before practice Thursday to tape the "Harlem Shake" video in their locker room. "We don't need to be serious all the time," Bosh said. ... Battier has at least one 3-pointer in 14 straight games, the fourth-best such streak of his career. ... Miami is at New York on Sunday, facing a Knicks team that has already beaten the Heat twice — by 20 points each time. "Our guys will look forward to playing this game," Spoelstra said.

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Incomes see largest drop in 20 years

U.S. consumer spending rose in January as Americans spent more on services, with savings providing a cushion after income recorded its biggest drop in 20 years.

Income tumbled 3.6 percent, the largest drop since January 1993. Part of the decline was payback for a 2.6 percent surge in December as businesses, anxious about higher taxes, rushed to pay dividends and bonuses before the new year.

A portion of the drop in January also reflected the tax hikes. The income at the disposal of households after inflation and taxes plunged a 4.0 percent in January after advancing 2.7 percent in December.

The Commerce Department said on Friday consumer spending increased 0.2 percent in January after a revised 0.1 percent rise the prior month. Spending had previously been estimated to have increased 0.2 percent in December.

January's increase was in line with economists' expectations. Spending accounts for about 70 percent of U.S. economic activity and when adjusted for inflation, it gained 0.1 percent after a similar increase in December.

Though spending rose in January, it was supported by a rise in services, probably related to utilities consumption. Spending on goods fell, suggesting some hit from the expiration at the end of 2012 of a 2 percent payroll tax cut. Tax rates for wealthy Americans also increased.

The impact is expected to be larger in February's spending data and possibly extend through the first half of the year as households adjust to smaller paychecks, which are also being strained by rising gasoline prices.

Economists expect consumer spending in the first three months of this year to slow down sharply from the fourth quarter's 2.1 percent annual pace.

With income dropping sharply and spending rising, the saving rate - the percentage of disposable income households are socking away - fell to 2.4 percent, the lowest level since November 2007. The rate had jumped to 6.4 percent in December.

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Groupon CEO Andrew Mason to staff: 'I was fired today'

After he was fired Thursday, Andrew Mason wrote a note to his Groupon colleagues filled with the same offbeat humor, charm and candor that defined his tenure as chief executive of the daily deals company he co-founded.

"After four and a half intense and wonderful years as CEO of Groupon, I've decided that I'd like to spend more time with my family," the letter began. "Just kidding — I was fired today."

His ouster came as no surprise. Questions about his future have been swirling for months because of Groupon's poor performance since going public a little more than a year ago.

The end of the road for the 32-year-old Mason came a day after the Chicago-based company posted disappointing fourth-quarter earnings that sent its stock reeling. But his exit was signaled three months ago when an anonymous leak to a well-read tech blog indicated that Groupon's board of directors was considering replacing Mason.

Mason even alluded to his preordained departure in his farewell note: "If you're wondering why ... you haven't been paying attention. … As CEO I am accountable."

Mason's firing also reflects a changing company with needs different than the skyrocketing startup that he helped create in 2008. His rapid rise and fall is hardly unusual in entrepreneurial circles. It's hard to transition from visionary to manager of a complex, global enterprise and the pace at Groupon was nearly unprecedented.

"I've always thought they got a bad rap in the press," Matt Moog, a Chicago tech entrepreneur, said of Groupon's leaders. "It's extraordinarily difficult to grow a company as fast as they did and get it all right the first time. The change in leadership will give them a chance to back away from that criticism a little bit and try to keep growing the company."

Groupon's struggles have been stunning, and dispiriting, to many in Chicago because so many expectations were wrapped up in its early success. The city's tech scene has worked through several boom and bust cycles trying to put itself on the map as a regional center. That ambition is held not just by local entrepreneurs and investors, but civic boosters all the way up to Mayor Rahm Emanuel.

And for a while, Groupon delivered the goods. The company evolved into one of the hottest names in technology in less than three years, single-handedly redefining Chicago as one of the most exciting cities in the country for digital business. Employment at the company grew from a handful to more than 10,000 worldwide as the company's valuation blossomed into the billions.

Groupon's red-hot growth attracted numerous imitators, from LivingSocial to Amazon. Google noticed the competitive threat to its local advertising sales and tried to purchase Groupon in 2010 for nearly $6 billion. Groupon's leaders said no deal.

For a while it looked like a smart call. Investors cheered Groupon's initial public offering in November 2011. It ended its first day as a public company worth more than $17 billion.

But since then Groupon has floundered, as consumers' appetite for heavily discounted deals on restaurants, yoga classes and pedicures has shrunk. To boost growth the company started Groupon Goods, an online retailer selling a seemingly random assortment of products — everything from leggings to cowhide rugs — at a discount.

Few analysts believe Groupon can effectively compete in the online retailer space against the likes of Amazon. Some see it as little more than an expensive way to beef up sales and, ultimately, as a distraction from its lagging daily deals business.

A more promising initiative may be Groupon's local marketplace, a shift from pushing out daily deals to pulling in customers through ongoing, search-driven offers. Launched in November in Chicago and New York, customers who search online for various products and services will see relevant deals on Groupon, hopefully pulling them to the site to fulfill their purchases.

The company called it an "evolutionary step" toward demand shopping, while Mason, on what was his last conference call as CEO of Groupon on Wednesday, said it was a necessary change of direction.

"It's hard to believe that just a short time ago we were a deal-a-day business," he said. "As you can see, our business continues to evolve at a breakneck pace."

Questions about the company's direction — and identity — will now fall to someone else.

Groupon, valued at less than $3 billion, said it has launched a search for Mason's replacement. In the meantime, Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis will be in charge.

"This company is in a different phase of its growth now and it requires a slightly different skill set," said Arvind Bhatia, a senior research analyst at Sterne Agee. "What they need is somebody who has e-commerce experience and who has an operational background — not just a visionary."

As co-founder and chief executive, Mason not only was Groupon's public face, but also defined its culture. Unlike Mark Zuckerberg of Facebook and other high-profile tech entrepreneurs, Mason did not grow up a computer-programming whiz.

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WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

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Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

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Online:

WHO report: http://bit.ly/YDCXcb

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George Lopez to host Playboy Jazz Festival

LOS ANGELES (AP) — George Lopez is taking over as master of ceremonies of the annual Playboy Jazz Festival.

The comedian was announced as the festival's new host Thursday at an event at the Playboy Mansion.

"This is iconic," said the former star of the ABC sitcom "George Lopez" and the TBS talk show "Lopez Tonight." ''I've never been here before. I was married for 17 years. I couldn't even have a Playboy air freshener."

Bill Cosby previously served as the festival's host for more than 30 years. Cosby was a fixture at the gathering of jazz luminaries since the first festival was held in 1979.

Lopez said Cosby called him to give him advice on the gig. His tips included not letting musicians in his dressing room "because they'll eat all your food and drink all your drink," joked Lopez.

This year's show will feature such artists as Herbie Hancock, Jeffrey Osborne, Sheila E. and Grace Kelly, who were on hand at Thursday's event.

The Playboy Jazz Festival is scheduled for June 15 and 16 at the Hollywood Bowl.

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Follow AP Entertainment Writer Derrik J. Lang at http://www.twitter.com/derrikjlang .

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Online:

http://www.playboyjazzfestival.com

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Economic expansion weakest since 2011

The U.S. economy barely grew in the fourth quarter although a slightly better performance in exports and fewer imports led the government to scratch an earlier estimate that showed an economic contraction.

Gross domestic product expanded at a 0.1 percent annual rate, the Commerce Department said on Thursday, missing the 0.5 percent gain forecast by analysts in a Reuters poll.

The growth rate was the slowest since the first quarter of 2011 and far from what is needed to fuel a faster drop in the unemployment rate.

However, much of the weakness came from a slowdown in inventory accumulation and a sharp drop in military spending. These factors are expected to reverse in the first quarter.

Consumer spending was more robust by comparison, although it only expanded at a 2.1 percent annual rate.

Because household spending powers about 70 percent of national output, this still-lackluster pace of growth suggests underlying momentum in the economy was quite modest as it entered the first quarter, when significant fiscal tightening began.

Initially, the government had estimated the economy shrank at a 0.1 percent annual rate in the last three months of 2012. That had shocked economists.

Thursday's report showed the reasons for the decline were mostly as initially estimated. Inventories subtracted 1.55 percentage points from the GDP growth rate during the period, a little more of a drag than initially estimated. Defense spending plunged 22 percent, shaving 1.28 points off growth as in the previous estimate.

There were some relatively bright spots, however. Imports fell 4.5 percent during the period, which added to the overall growth rate because it was a larger drop than in the third quarter. Buying goods from foreigners bleeds money from the economy, subtracting from economic growth.

Also helping reverse the initial view of an economic contraction, exports did not fall as much during the period as the government had thought when it released its advance GDP estimate in January. Exports have been hampered by a recession in Europe, a cooling Chinese economy and storm-related port disruptions.

Excluding the volatile inventories component, GDP rose at a revised 1.7 percent rate, in line with expectations. These final sales of goods and services had been previously estimated to have increased at a 1.1 percent pace.

Business spending was revised to show more growth during the period than initially thought, adding about a percentage point to the growth rate.

Growth in home building was revised slightly higher to show a 17.5 percent annual rate. Residential construction is one of the brighter spots in the economy and is benefiting from the Federal Reserve's ultra easy monetary policy stance, which has driven mortgage rates to record lows. (Reporting by Jason Lange; Editing by Andrea Ricci)
 

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Chicago archdiocese to close 5 schools in cost-cutting move

Budget cuts announced Wednesday by the Archdiocese of Chicago signal that the area's Roman Catholics are entering a period of austerity when there will be less money for their parishes and schools.

The cuts, which were officially announced as Cardinal Francis George and other leaders of the church gathered at the Vatican to select a new pope, include closing five schools, eliminating 75 positions at the archdiocese's headquarters and placing a moratorium on loans to parishes from the archdiocese bank for three years. Other changes include creating stricter guidelines for local parishes applying for subsidies and reducing the number of the agencies in the archdiocese.

George, who spoke publicly about the cuts when asked by reporters in Rome, said they are needed to address the archdiocese's chronic financial problems. The archdiocese has run deficits of more than $30 million annually over the last four years, including being $40 million in the red for the fiscal year ending in June 2012.

All told, the measures will save tens of millions of dollars over the next few years, officials said.

“The expenses have gone up, and the income is pretty well flat,” George said after a news conference in Rome about Pope Benedict XVI's last audience Wednesday in St. Peter's Square. “We tried to ride out the recession without making any changes — and we can't do that. We're giving more grants to parishes and schools that need more money. The budget is not balanced. Not just layoffs, but a lot of other things being done, other ways to use the resources we have.”

The archdiocese sold $150 million in bonds in 2012 that helped it get through a cash-flow problem, but ultimately that wasn't enough, George said. He hopes the cuts will enable the archdiocese to balance its budget in two years.

Although the cardinal's announcement made headlines, the archdiocese's financial situation has been no secret to its priests. Several clergymen said they knew the archdiocese had planned to scale back loans to parishes.

“We have already made adjustments,” said the Rev. Dennis Ziomek of St. Barbara Parish in Chicago's Bridgeport neighborhood. “We have to be responsible stewards with the money.”

In a letter posted on the archdiocese website, the cardinal thanked parishioners for their generosity and asked them to pray for the employees now out of a paycheck.

At the archdiocese's Pastoral Center headquarters on Wednesday, people funneled in and out of the building during their lunch breaks but declined comment on the layoffs. Before the announcement, staffers received memos asking them to report to their desks early Wednesday.

Of the 75 positions, 55 were full-time jobs. Sixty people were let go, while the remaining posts had been vacant. Those cuts are expected to save $11 million to $13 million annually by fiscal 2015, George wrote in his letter.

Employees who received pink slips will get job counseling, extended health benefits and generous severance packages.

“We're keeping up counseling for helping people find jobs, looking for places where they might look for jobs,” George said.

Along with the layoffs, the archdiocese will reduce the number of capital loans and grants it gives parishes, while creating “stricter criteria” for them to qualify for the financial assistance.

A Parish Transformation initiative in the works for at least two years will also try to save money by laying out measures to provide more financial stability, though the letter did not give details.

Those cuts are expected to save an additional $13 million to $15 million annually by fiscal 2015, the letter states.

By next year, the archdiocese will reduce its aid to Catholic schools by $10 million. It plans to give scholarships to children affected by the five school closings so they can attend nearby Catholic schools. Officials said low enrollment was a key factor for closing the schools: St. Gregory the Great High, St. Paul-Our Lady of Vilna Elementary and St. Helena of the Cross Elementary in Chicago, plus St. Bernardine in Forest Park and St. Kieran in Chicago Heights.

Now, Catholic schools will start relying on scholarships for student financial aid instead of grants from the archdiocese to make tuition affordable, Superintendent Sister Mary Paul McCaughey said.

She pointed to a new partnership with the Big Shoulders Fund, a charity supporting urban Catholic schools, that will help families pay for school with scholarships.

McCaughey did not expect tuition at other Catholic schools to immediately rise because grants from the archdiocese have been reduced. About two-thirds of schools already have posted their tuition rates for the upcoming school year, she added.

“Although things are challenged, I think (Chicago) is a Catholic community that's always supported its schools,” McCaughey said. “I think the support will be there.”

Outside of St. Bernardine Elementary in west suburban Forest Park, one of the schools that will close this summer, Maria Maxham said she was devastated when she heard last month that she'd have to send her children, one in second grade and the other in fourth grade, to a different school.

Maxham, who lives in Forest Park, said she is not sure the two will attend another local Catholic school because some lack what she thought was St. Bernardine's strength.

“There is so much diversity at St. Bernardine, and that's part of what makes it so fantastic,” Maxham said. “It was a special place and a second family for us.”

The school, which has been open since 1915, has about 100 students currently enrolled in its preschool-through-eighth-grade classrooms.

Administrators, teachers and parents were notified of the closing in January, when McCaughey led a meeting at the school and explained the large amount of money that the archdiocese needed to reduce from the schools budget, Principal Veronica Skelton Cash said.

One family left the school shortly after hearing the news, she added.

Cash, who joined the school in the fall, said there was much frustration among staff members afterward. Many believed they would have at least a few years to turn things around.

“I could see a lot of things changing for the better at this school,” Cash said. “The culture of the community is changing, and we were getting more and more inquiries about the school. There was momentum going forward.”

Current employees were given guidance on severance and benefits by the archdiocese's human resources officials, Cash said. Teachers without jobs will also be placed on a priority list for future employment with the archdiocese, she said.

“I'm incredibly disheartened,” said Daniel Kwarcinski, who hopes to find a job at another private school after teaching art for seven years at St. Bernardine. “There's a need for a school like this where we are at.”

In Rome, George said the decisions to let people go and reduce aid were not easy. But he reiterated that the archdiocese's financial situation drove the decision.

“We have to balance the budget, especially if it's precarious,” he said. “The growth being very slow means we can no longer ignore the kinds of deficit situations that have been imposed on us. We have to take action.”

Tribune reporter Manya A. Brachear reported from Rome, with Tribune reporters Bridget Doyle and Jennifer Delgado in Chicago.

mbrachear@tribune.com

bdoyle@tribune.com

jmdelgado@tribune.com

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Apple CEO says he feels shareholders' pain, urges long view

CUPERTINO, California (Reuters) - Apple Inc CEO Tim Cook on Wednesday acknowledged widespread disappointment in the company's sagging share price but shared few details about its secretive product pipeline and touched only briefly on a raging debate about how best to reward shareholders.

The world's most valuable technology company headed into its annual shareholders' meeting at its headquarters on shakier ground than it has been accustomed to in years, since the iPhone and iPad helped vault the company to premier investment status.

A declining share price has lent weight to Wall Street's demand that it share more of its $137 billion in cash and securities pile - equivalent to Hungary's Gross Domestic Product, and growing - a debate now spearheaded by outspoken hedge fund manager David Einhorn.

Einhorn was not spotted at the meeting at the company's headquarters at 1 Infinite Loop in Cupertino. Cook repeated that the company's board remained in "very very active" discussions about options for cash sharing, and said he shared investors' dissatisfaction over the stock price.

"I don't like it either. The board doesn't like it. The management team doesn't like it," Cook told investors.

"What we are focused on is the long term. This has always been a secret of Apple."

By focusing on the long term, revenue and profit will follow, he said.

Apple had the "mother of all years" last year with growth, in terms of dollars, outpacing that of Microsoft Corp, Google Inc, Nokia and several other major technology companies combined, Cook said.

Cook -- who was re-elected to the board with 99.1 percent of shareholder votes -- added that the company was working on new product categories, but, as usual, would not elaborate.

Speculation is rife on Wall Street and in Silicon Valley that the iPhone maker is working on a project to revolutionize the television and TV content, or a smart "iWatch."

Apple's stock was down 0.25 percent to $447.86 in afternoon trade. It is now down more than 35 percent from its $702.10 September peak.

SHARE AND SHARE ALIKE

Cook presided over Wednesday's staid affair in his typically even-keeled manner. Despite a slipping share price, dissatisfaction on the Street over its cash allocation and uncertainty over its product pipeline, shareholders re-elected the entire board, and Cook won more than 99 percent of the vote in preliminary results.

Cook got the most votes, followed by Walt Disney Co's Bob Iger, who won re-election with 99 percent of shareholder votes. Former Avon Products Inc CEO Andrea Jung, who stepped down after botching several attempts at restructuring the cosmetics company, received the fewest votes of the group, with 84.6 percent of shareholders voting yea.

Carol Shoaff, an Apple shareholder for about the past five years, said after the meeting that she was confident in Apple's leadership and the company was on the right path.

"I think he's good," she said, referring to Cook. "I don't think Steve Jobs would have left him in charge if he didn't believe in him."

Members of the Service Employees International Union protested outside the headquarters to get Apple to reconsider hiring of securities contractor SIS.

Apple's annual shareholder meetings have seemed more like celebrations in recent years. Since the company came out with its first iPhone in 2007, the company multiplied in market value until it peaked in September.

Then Samsung Electronics and Amazon.com Inc began seriously eroding its market share in 2012, powered by arch-rival Google Inc's Android software. On March 14, Samsung will launch the Galaxy SIV smartphone, the latest iteration of a flagship smartphone that helped it dethrone Apple from the top of the industry.

Institutional investors want Apple to share a greater chunk of its cash and securities pile, a demand growing increasingly strident with the company's stock wallowing at levels untested since the start of 2012.

Einhorn is advocating "iPrefs," preferred stock that will carry a perpetual 4 percent dividend to boost returns while not hampering cash flow.

On Friday, Einhorn won an important legal victory that strengthened his hand. His Greenlight Capital secured an injunction that invalidated shareholder voting on a proposal to scrap Apple's power to issue preferred stock at its discretion.

Apple says this would enhance governance. But the hedge fund manager argued it could complicate efforts to issue preferred securities in the future.

Cook said again on Wednesday that Einhorn's lawsuit - regardless of its efficacy - was a "silly sideshow." The underlying principle of cash distribution was something he and the board took seriously, he added.

The proposal was not put forth on Wednesday but Apple shareholders and representatives from the California Public Employees Retirement System and the Nathan Cummings Foundation spoke in favor of it at the meeting.

CalPers, owner of 2.7 million Apple shares, had supported the so-called Proposal 2. Senior Portfolio Manager Anne Simpson said it was unfortunate the measure could not be put forward.

"We know there is hot debate going on with cash," Simpson told the assembled shareholders. "We are willing and happy to wait."

NEW HQ TO BE DELAYED

Cook, who took over from late company co-founder Steve Jobs in 2011, answered a variety of questions from shareholders, including some on Apple's new headquarters, labor conditions in its factories and product plans.

One shareholder also asked why there was no bathroom in an Apple retail store in Santa Monica, Calif. Cook, acknowledging that it was an important point, said he will look into it.

On the new headquarters, Cook said the company plans to break ground later this year and occupy the facilities in 2016, a delay from the original 2015 target date.

The meeting largely followed the script with no distractions. Shareholders voted down two shareholder proposals, both of which were opposed by Apple's board. One wanted Apple leadership to hold more stock, the other was a proposal to create a board committee on human rights.

(Writing by Edwin Chan; Editing by Lisa Von Ahn, Tim Dobbyn and Dan Grebler)

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