From Staff and News Services
Published on: 03/05/08
AUTOMOTIVE: GM: Lithium-ion car to debut in '10
Detroit —- General Motors Corp. says it expects to bring its first hybrid engine powered by a lithium-ion battery to market in North America in 2010. The world's largest automaker by sales says the new battery will deliver three times the power of GM's current nickel-metal-hydride battery.
Car seats from Combi USA recalled
Fort Mill, S.C. —- About 67,000 child car seats manufactured by Combi USA Inc. are being recalled because federal tests show the seats might separate from their bases in front-end collisions. In a release Monday, Combi USA said it will offer free retrofit kits to consumers who contact the company.
GM health care trust clears hurdle
Detroit —- A federal judge on Tuesday granted preliminary approval to a settlement between General Motors Corp. and the United Auto Workers that would set up a trust to fund the automaker's retiree health care. GM and the UAW agreed to form the trust as part of contract negotiations last fall. The trust would take on $46.7 billion in health care costs starting as early as Jan. 1, 2010.
DEALS: Cardinal Health plans acquisition
Dublin, Ohio —- Cardinal Health Inc., a provider of health care products and services, said Tuesday it is buying Enturia Inc. for $490 million in a deal that will allow Cardinal to expand its products that hospitals can use to prevent patients from getting infections. Hospitals and surgical centers rely on privately held Enturia's ChloraPrep products to disinfect patients' skin before surgical and vascular procedures.
FINANCIAL: Staples reduces earnings forecast
Staples Inc.'s fourth-quarter profit dipped as the world's largest office products supplier suffered declining North American retail sales offset by gains in its overseas and delivered-products businesses. The Framingham, Mass.-based retailer on Tuesday slightly reduced its profit and sales forecasts for 2008, saying it expects the weak economy to linger. But the chain of more than 2,000 stores also announced it was increasing its dividend. Staples earned $333.2 million, or 47 cents per share, in the three months ended Feb. 2. That compares with a profit of almost $336.5 million, or 46 cents per share, in the fiscal fourth quarter a year earlier.
FOOD / BEVERAGE: Pizza franchisee adds nine stores
The largest single-owner franchisee of Domino's Pizza stores just got bigger. Atlanta-based Cowabunga Inc. said this week it has bought nine more stores, expanding service in Phenix City, Ala., and Columbus. With the additions, Cowabunga, started in 1989 by Michael Orcutt, has 78 outlets in Georgia, Alabama and South Carolina, including 43 Atlanta area locations.
LEGAL: Seattle firm sues TBS over patent
Time Warner Inc.'s Turner Broadcasting System unit was sued by a patent owner alleging infringement of protected technology for a method of making secure purchases online. Turner Broadcasting is selling electronic games and other products on its Gametap Web site in violation of a patent awarded in 2000, Seattle-based CRS LLC contends in a complaint filed Tuesday in federal court in Wilmington, Del.
MANUFACTURING: Boeing questions Air Force decision
Washington —- Boeing Co. on Tuesday said it wants the Air Force to immediately explain why it awarded a $35 billion aerial refueling tanker contract to rival European Aeronautic Defence and Space Co. and its partner, Northrop Grumman Corp. Boeing, which has been supplying air-to-air refueling tankers to the Air Force for nearly 50 years and was widely expected to win the deal, will not decide whether to protest the decision until it is debriefed by the Air Force. By awarding the contract to Europe-based EADS and Los Angeles-based Northrop Grumman, the Air Force touched off a furor in Congress.
Lockheed wants clarity on F-22 plan
Lockheed Martin Corp. Chief Executive Robert Stevens called for discussions with Congress and the Department of Defense to determine whether more F-22 jet fighters are needed beyond the 183 now on order. The question of whether the United States should buy more F-22s or close the production line in Marietta when current production is completed in 2011 "will be examined," and a decision will probably be made this year, Stevens told a Citigroup-sponsored conference in New York. "I want to make sure that we've exhausted fully the conversation as to whether we are going to buy any more of these, because the real tragedy would be to disassemble the supply chain, wind this line down and then attempt to drive it back up," he said.
REAL ESTATE: Homebuilders cite 'uncertainties'
The housing decline is pushing the U.S. economy to the "brink of recession" and may inflict further damage if sales don't improve next year, said David Seiders, chief economist for the National Association of Homebuilders. "The uncertainties for this part of the housing cycle are extreme," Seiders said Tuesday on a conference call. "If housing is not showing improvement by early 2009, the economy could be set up for another major setback."
REGULATORY: Proposal targets short sellers
Washington —- Securities regulators voted 3-0 on Tuesday to propose a new rule intended to crack down on lingering abuses involving "naked" short sales and failures to deliver shares that have been used in such sales. The proposal is part of a continuing attack by the Securities and Exchange Commission on short-sales abuses. Short selling involves sales of borrowed shares, producing profits when prices decline, allowing the short seller to replace borrowed shares at a lower price. In contrast, "naked" short sellers do not borrow shares before engaging in short selling.
TECHNOLOGY: Facebook lures Google executive
Palo Alto, Calif. —- Rapidly growing online hangout Facebook Inc. has lured one of Google Inc.'s top advertising executives to be its new chief operating officer. Facebook says Sheryl Sandberg, Google's vice president of global online sales and operations since 2002, will begin her new job March 24.
Nike, Apple team up to hit the gym
Beaverton, Ore. —- Nike and Apple are making the iPod compatible with gym equipment. The companies announced Tuesday that they are working with gym equipment manufacturers and health clubs to allow members to plug their iPod Nano into cardio equipment.
Apple: No dividend or stock buyback
Apple Inc., whose stock has plunged 37 percent this year, has no plans to buy back shares or start paying a dividend, Chief Executive Steve Jobs said Tuesday. "At this time, we have no plans to do either," Jobs said in response to a question at the company's annual meeting. He reiterated his goal for this year of selling 10 million iPhones.



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