On Tuesday October 26, 2010, 5:49 pm EDT
Ford keeps rolling as net
income jumps, debt eases
DEARBORN, Mich. (AP) --
Ford is on a roll. Its popular new cars and trucks are grabbing a bigger share
of the U.S. market. It's about to erase a big chunk of its health care debt.
And it's adding a significant number of jobs for the first time in five years.
On Tuesday, the automaker
said it made $1.7 billion from July through September, a jump of nearly 70
percent from a year earlier and its sixth consecutive quarter in the black.
The news puts Ford further
ahead of its rivals as the U.S. auto industry slowly turns around. Chrysler has
yet to make a profit after a stay in bankruptcy last year. General Motors is
making money but losing market share -- and is still partly government-owned.
Toyota, Honda lead quality
rankings but GM gains
DETROIT (AP) -- The most
problem-free cars and trucks are made by Honda and Toyota, but Ford is closing
in fast and General Motors is making big quality improvements, according to
Consumer Reports magazine's 2010 reliability rankings.
Ford and GM continue to
narrow the large quality gap that once separated Toyota and other Asian
automakers from their Detroit rivals. Large overhauls of American car companies
in the last few years have resulted in fewer brands and better vehicles from
Detroit.
This year's rankings, based
on a survey of about 960,000 magazine subscribers, also restored recommended
ratings for several recalled Toyota models and bumped up a pair of Korean
brands. Chrysler, however, continued to languish.
Consumer Reports ratings
are widely used by buyers shopping for cars and trucks. The magazine is the
third-largest factor used by Americans to pick vehicles, topped only by brand
loyalty and recommendations from friends and family.
Stocks eke out gains on
mixed earnings
NEW YORK (AP) -- Mixed
earnings reports and a stronger dollar helped stocks finish about where they
started Tuesday.
The Dow Jones industrial
average wavered within a 100-point range as traders attempted to parse the
direction of the economy amid a drop in home prices, a batch of weak earnings
reports and a slight rise in consumer confidence.
Stocks started the day with
losses after disappointing results from Texas Instruments Inc., U.S Steel
Corp., Bristol-Myers Squibb Co. Du Pont, one of the 30 companies that make up
the Dow average, fell 1 percent even though it beat estimates. Investors have
been having high expectations this season with three out of every four
companies besting analyst estimates.
Steel industry's outlook
gloomy on slower growth
The steel industry's
outlook has dimmed with the unevenness of the global economy. Sales have
dropped, prices have fallen, costs have risen and some companies see more tough
times ahead.
Some of the world's biggest
steel manufacturers turned in third-quarter performances on Tuesday that fell
short of expectations they had just three months ago. They say slow economic
growth worldwide is hurting the industry in a number of sectors. Steel is used
in everything from construction to automobiles, appliances and other consumer
products.
As China tries to slow its
economy, steel makers there may try to undercut U.S. companies by selling their
products overseas at lower prices. U.S. companies must then slash prices to
compete.
United States Steel Corp.
Chairman and CEO John Surma said he has noticed an increase in imports,
particularly from South Korea, which will lead to lower shipments and lower
prices for his company.
GlaxoSmithKline settles bad
drug case for $750M
BOSTON (AP) -- British
pharmaceutical company GlaxoSmithKline PLC will pay $750 million to settle
allegations that it knowingly manufactured and sold adulterated drugs,
including the popular antidepressant Paxil, federal prosecutors in
Massachusetts said Tuesday.
U.S. Attorney Carmen Ortiz
announced that the London-based company will pay $150 million in criminal fines
and $600 million in civil penalties related to faulty manufacturing processes
at its plant in Cidra, Puerto Rico.
The company allowed several
drugs to be adulterated between 2001 and 2005, including Paxil CR, a
skin-infection ointment called Bactroban, and an anti-nausea drug called
Kytril. The company said the plant closed in 2009 due to declining demand for
the medicines made there.
Consumer confidence rises
only slightly in October
NEW YORK (AP) -- Americans'
confidence in the economy stayed stuck in gloomy territory in October, with
Wall Street's gains in recent months not boosting spirits much.
Coaxing shoppers out of
their shells will be the major challenge for retailers heading into the holiday
season. That could mean they'll be continuing to push big discounts.
The Conference Board, a
private research group, said its Consumer Confidence Index rose to 50.2 from a
revised 48.6 in September. Economists surveyed by Thomson Reuters expected
49.2.
September's reading was the
index's lowest point since February. An index of 90 indicates a healthy
economy.
Foreclosures push home
prices down in many cities
WASHINGTON (AP) -- Home
prices are falling further, suggesting a bottom hasn't been reached in many
metro areas.
Millions of foreclosures
are expected to pour onto the market in the coming years. That's likely to
force prices down and hurt even cities that had begun to rebound.
Investigations into banks' foreclosure paperwork could further deter buyers and
weigh down prices.
The past few months have
been the worst time in a decade for the housing market. Few people have bought
homes, and among the small pool of buyers, many have purchased foreclosures and
other distressed properties.
The impact was apparent
Tuesday when Standard & Poor's/Case-Shiller released its latest index for
home prices in 20 major U.S metro areas. The average price for all markets fell
0.2 percent in August and 15 cities posted declines.
Bristol-Myers Squibb sees
3Q profit dip 2 percent
TRENTON, N.J. (AP) --
Bristol-Myers Squibb Co. posted a slight decline in third-quarter profit
Tuesday as its restrained spending was offset by flat sales of its drugs, lower
income from its partners and bigger discounts to government because of the
health care overhaul.
Bristol-Myers, which sells
blood thinner Plavix, the world's second best-selling drug, reported
third-quarter net income of $949 million, or 55 cents per share. That's down
nearly 2 percent from $966 million, or 48 cents per share, in the year-ago
quarter.
Chief Executive Lamberto
Andreotti told analysts on a conference call that approval of the company's
experimental drug to prevent organ transplant rejection is being held up by the
Food and Drug Administration until multiple problems are fixed at its
manufacturing plant in Manati, Puerto Rico.
Kimberly-Clark says 3Q
profit falls; cuts forecast
NEW YORK (AP) -- Consumer
products maker Kimberly-Clark Corp. said Tuesday that its third-quarter net
income fell 19 percent as making its top-selling tissues and diapers got more
expensive, and the company cut its forecast for the full year.
The results fell short of
analysts' expectations, and shares of the maker of Huggies diapers and Kleenex
tissues fell nearly 6 percent.
Costs for key materials
such as pulp, polymer resin and oil-based materials rose $265 million in the
quarter, the highest quarterly increase the company has ever seen.
DreamWorks Animation 3Q
profit doubles
LOS ANGELES (AP) --
DreamWorks Animation SKG Inc. said Tuesday that its third-quarter earnings
doubled thanks to the international box office results from "Shrek Forever
After."
Net income hit $39.8
million, or 47 cents per share. A year earlier, it was $19.6 million, or 23
cents per share. Revenue rose 39 percent to $189 million, from $135 million a
year ago.
Analysts surveyed by
Thomson Reuters forecast a profit of 35 cents per share on revenue of $163
million.
DreamWorks is the earliest
movie studio to report quarterly results, which give a glimpse into how
consumers are spending their entertainment dollars. It has said 2010 will be
its best year ever. Its third movie of the year, "Megamind," will be
widely released in the U.S. on Nov. 5.
By The Associated Press
The Dow Jones industrial
average rose 5.41 points, or 0.1 percent, to 11,169.46. The Standard &
Poor's 500 index rose 0.02 to 1,185.64, while the technology-focused Nasdaq
composite index rose 6.44, or 0.3 percent, to 2,497.29.
Benchmark crude for
December delivery rose 3 cents to settle at $82.55 a barrel on the New York
Mercantile Exchange.
In other Nymex trading in
November contracts, heating oil was off 0.5 cent to settle at $2.2500 a gallon
and gasoline gained 1.67 cents to settle at $2.0940 a gallon. Natural gas
gained 3.7 cents to settle at $3.395 per 1,000 cubic feet.
In London, Brent crude rose
12 cents to settle at $83.66 a barrel on the ICE Futures exchange.