AUTOMOTIVE: Fuel economy standard proposed

Washington —- The nation's fleet of new cars and trucks will be required to achieve 31.6 miles per gallon of fuel by 2015, the Bush administration said Tuesday. Transportation Department Secretary Mary Peters said the proposal was "an aggressive but achievable standard. I think we've got something that is going to significantly save fuel and help clean our air." The plan responds to a new law that requires the nation's new cars and trucks, taken as a collective average, to meet 35 mpg by 2020.

FINANCIAL: Wachovia feels shareholder heat

Charlotte —- Shareholders calling for the resignation of Chief Executive Ken Thompson at Wachovia Corp.'s annual meeting Tuesday drew applause from the raucous crowd. The meeting came a little more than a week after the nation's fourth-largest bank reported a first-quarter loss of $393 million and announced a 41 percent cut to its dividend.

RBS stock sale sets record in Britain

London —- The Royal Bank of Scotland announced the biggest stock sale in British corporate history Tuesday, asking shareholders for $23.9 billion to shore up finances after revealing new and extensive losses from exposure to bad U.S. mortgages.

Earnings decline at Kimberly-Clark

Dallas —- Kimberly-Clark Corp., facing higher prices for the raw materials it needs to make tissues and diapers, said Tuesday that its first-quarter profit slipped 2.5 percent despite an increase in sales. The company also forecast second-quarter earnings slightly below Wall Street's target.

UnitedHealth slashes outlook

Insurer UnitedHealth said Tuesday that first-quarter profit rose 7 percent, missing Wall Street expectations, and it slashed its full-year profit outlook in part because of a drop-off in corporate customers. President and Chief Executive Stephen J. Hemsley called the situation "unacceptable." Minnetonka, Minn.-based UnitedHealth Group Inc. said it earned $994 million, or 78 cents per share, up from $927 million, or 66 cents per share, during the same period last year. Revenue rose 7 percent to $20.30 billion.

Weak dollar helps McDonald's

McDonald's Corp. said Tuesday that its first-quarter profit rose 24 percent as the fast-food company benefited from the weak U.S. dollar and strong global sales. For the January-March period, the suburban Chicago company earned $946.1 million, or 81 cents per share. That's up from $762.4 million, or 62 cents per share, during the same period last year.

Earnings up 6% at Lockheed Martin

Defense contractor Lockheed Martin Corp. said Tuesday that its first-quarter earnings rose 6 percent as higher sales of space equipment, missiles and other combat tools offset a dip in fighter jet sales. Maryland-based Lockheed, the world's largest defense supplier, said it earned $730 million, or $1.75 per share, up from the $690 million, or $1.60 per share in the first quarter of 2007. Revenue was $9.98 billion for the quarter, compared with $9.27 billion during the same period last year.

International sales fuel Yum Brands

Lousville, Ky. —- A strong international appetite for the fast-food fare at Yum Brands Inc. fueled a 31 percent jump in first-quarter profit. The parent of Taco Bell, KFC and Pizza Hut on Tuesday reported double-digit growth in operating profit at its China and international divisions for the three months ended March 22. The company also raised its full-year earnings forecast to $1.87 per share from $1.85 as its top executive predicted sustained expansion overseas along with a U.S. business which he said was positioning itself for sustainable growth. Net income for the latest quarter rose to $254 million, or 50 cents per share, from $194 million, or 35 cents a share, in the year-ago period.

Earnings up 2% at Norfolk Southern

Railroad operator Norfolk Southern Corp. said Tuesday that its first-quarter profit rose 2 percent as higher revenue per shipment offset an overall decline in traffic and soaring fuel prices. Norfolk Southern said it earned $291 million, or 76 cents per share, in the three months ended March 31. The company earned $285 million, or 71 cents per share, in the same period of 2007. Revenue increased 11 percent to $2.5 billion.

FOOD / BEVERAGE: ConAgra to trim 212 more jobs

Omaha, Neb. —- ConAgra Foods Inc. said Tuesday that it will cut 212 jobs throughout the company over the next year as part a new effort to streamline its operations. These latest changes, combined with previously announced cuts in ConAgra's international unit, will cost about $40 million. The maker of Healthy Choice, Banquet and Chef Boyardee products disclosed the latest cuts in a regulatory filing.

REAL ESTATE: Expert: Housing woes could deepen

New Haven, Conn. —- An influential economist who long predicted the housing market bubble cautioned Tuesday that the slump in the U.S. housing market could cause prices to fall more than they did in the Great Depression, and that bailouts will be needed so millions don't lose their homes. Yale University economist Robert Shiller, pioneer of the widely watched Standard & Poor's/Case-Shiller home price index, said there's a good chance housing prices will fall further than the 30 percent drop in the historic depression of the 1930s. Home prices nationwide already have dropped 15 percent since their peak in 2006, he said.

REGULATORY: SEC scrutinizes credit rating firms

Washington —- The Securities and Exchange Commission is considering rules to limit conflicts of interest in the credit rating industry, a key financial player under scrutiny for not sounding the alarm about risky mortgage investments soon enough. SEC Chairman Christopher Cox said at a Tuesday hearing of the Senate Banking Committee that the government may soon create rules to ban credit rating agencies from doing consulting work for issuers of debt.

Broadcom settles options complaint

Broadcom Corp., the maker of chips for mobile-phone manufacturers such as Nokia Oyj, agreed to pay $12 million to settle regulatory claims it fraudulently hid $2.2 billion in costs while backdating stock options. Misconduct by the company's executives between 1998 and 2003 forced Broadcom to make the biggest earnings restatement to date in a federal crackdown on backdating, the Securities and Exchange Commission said in a statement Tuesday.