AUTOMOTIVE

Toyota credit unit finds clerical error

Toyota Motor Corp.'s U.S. credit unit said Tuesday that a clerical error caused it to inaccurately report debt levels related to foreign-currency hedges dating to its 2005 fiscal year. The cumulative amount of the error will range from $120 million to $155 million, Toyota Motor Credit Corp. said in a Securities and Exchange Commission filing. That may increase the unit's net loss for the fiscal year ended March 31 by $70 million, Torrance, Calif.,-based Toyota Motor Credit said. Toyota Motor Credit manages U.S. auto loans and leases for Toyota and arranges financing for the Japan-based automaker's U.S. sales and assembly operations.

DEALS

Grey Wolf rejects takeover proposal

Midland, Texas —- Basic Energy Services Inc. said Tuesday that it terminated its proposed takeover of onshore oil and gas driller Grey Wolf Inc. after Grey Wolf's stockholders voted against the deal. Grey Wolf continually rejected overtures from Precision Drilling Trust in favor of the deal with Basic Energy Services, saying Precision Drilling's proposal undervalued the company and didn't offer a significant premium to shareholders. Precision Drilling, a Canadian petroleum drilling company, has an offer on the table of $10 per share, valuing the buyout at $1.79 billion.

ECONOMY

Spanish developer files for bankruptcy

Madrid, Spain —- A real estate company in Spain that symbolized an era of easy money sought protection from creditors Tuesday. The collapse late Monday of developer and builder Martinsa-Fadesa —- saddled with $8 billion in debt —- is seen as the leading edge of yet more trouble in an industry that until a year ago enjoyed fabulous profits, with home buyers giddy over rock-bottom interest rates and snapping up property only seen in blueprints.

Euro hits record against dollar

Brussels, Belgium —- French Finance Minister Christine Lagarde says the strong euro is a result of ongoing instability in financial markets. The euro hit an all-time high of $1.6038 in European trading Tuesday. Lagarde blames wider financial market problems for the currency's strength, which makes exports more expensive for European manufacturers. She has told the European Parliament's economic committee that the euro is "paying some of the cost of the much-needed [world] balance that does not exist today." The dollar has slipped sharply over the last year.

Inventories up less than expected

Washington —- Business inventories rose at a slower-than-expected pace in May, a possible indication that the weakening economy is making companies cautious about their restocking plans. The Commerce Department reported Tuesday that inventories held on shelves and backlots edged up 0.3 percent in May, smaller than the 0.5 percent gain that many economists had been expecting. It was the smallest monthly increase since inventories rose 0.2 percent in April.

Retail sales weaker than expected

Washington —- Retail sales edged up by a weaker amount than expected in June as sales at auto dealerships plunged. The Commerce Department reported Tuesday that retail sales increased by 0.1 percent last month, even weaker than the 0.4 percent gain that analysts had been expecting. That small rise reflected a 3.3 percent drop in sales at auto dealerships, highlighting the troubles the U.S. auto industry is facing with a weak economy and soaring gasoline prices. Overall retail sales were supported by a 4.6 percent jump in sales at gasoline stations, an increase that largely reflected the huge jump in pump prices. Excluding the big drop in auto sales, retail sales would have increased 0.8 percent last month.

FOOD / BEVERAGE

Pilgrim's Pride to cut 600 jobs

Pittsburg, Texas —- Chicken producer Pilgrim's Pride Corp. said Tuesday that it will cut 600 jobs at an Arkansas plant in response to record-high prices for feed. Pilgrim's Pride will move its tray-pack chicken business from its El Dorado, Ark., processing plant into six other facilities. The job cuts, which take place by Sept. 19, will eliminate about half of the work force in that plant. Pilgrim's Pride also plans to close a distribution center in El Paso, Texas, within 60 days. The facility employs about 34 workers.

MillerCoors picks Chicago as HQ

The new MillerCoors joint venture will be based in downtown Chicago, company officials said Tuesday, opting for a neutral site over the home city of either individual brewer. MillerCoors LLC said early on it would not settle in Milwaukee, where SABMiller PLC's Miller Brewing Co. is based, or in Golden, Colo., the home of Molson Coors Brewing Co. To do so might suggest that one partner had more power than the other, company spokesman Julian Green said. "Our decision in no way diminishes the very positive view we have of Milwaukee or Denver," Green said. "It's just part of the agreement to be fair and balanced."

LEGAL

Spammer gets 30-month sentence

A New York man with 22 prior convictions was sentenced to 30 months in prison Tuesday for sending more than 1.2 million unsolicited e-mails to subscribers of America Online. U.S. District Judge Denny Chin in New York also ordered Adam Vitale, 27, to forfeit $183,304 he earned from the scheme, which prosecutors said Vitale ran with a New Jersey man from April to August 2005. Vitale was ordered to pay the money to AOL. "Spamming is serious criminal conduct," Chin said.

REGULATORY

Telemarketing companies fined

Philadelphia —- Two telemarketing companies that sell Dish Network Corp.'s satellite TV services have agreed to pay fines of $95,000 for ignoring the federal do-not-call list and making customers listen to recordings for too long, federal regulators said Tuesday. Planet Earth Satellite Inc. of Phoenix and its president have been charged with calling consumers whose phone numbers are on the National Do Not Call Registry. Star Satellite LLC, based in Provo, Utah, was accused of making telemarketing calls that failed to connect consumers to a live telemarketer within two seconds.

TECHNOLOGY

YouTube data to be redacted

New York —- In a nod to privacy complaints, Viacom Inc. won't be told the identities of individuals who watch video clips on the popular video-sharing site YouTube. Viacom and other copyright holders have agreed to let YouTube mask user IDs and Internet addresses when Google Inc.'s online video site hands over viewership records in a $1 billion lawsuit accusing YouTube of enabling copyright infringement. A federal judge ordered the database produced in a July 1 ruling widely criticized by privacy activists.

Intel earnings beat expectations

Intel Corp.'s second-quarter profit jumped 25 percent as blossoming sales of laptop chips helped the company cruise past Wall Street's estimates Tuesday. Investors viewed the chip maker's favorable results as a sign that global PC demand is healthy despite a sputtering U.S. economy that has depressed some domestic spending. Intel CEO Paul Otellini said demand for Intel's chips remains strong "in all segments and all parts of the globe." Three-quarters of Intel's business is outside the United States. Intel said its net income was $1.6 billion, or 28 cents per share, in the three-month period ended June 28. That was a 25 percent jump from the $1.28 billion, or 22 cents per share, that Intel earned in the same period a year ago.

Sony doubles size of PlayStation

Sony Corp. will double storage on its PlayStation 3 video game player and offer movie downloads to lure new customers to the console. A version of the PlayStation 3 with an 80-gigabyte hard drive will go on sale in September for $399, the price of the current 40-gigabyte model. The online movie service, available through the PS3 and PSP portable player, has started, Sony said at the E3 Media & Business Summit in Los Angeles.

TELECOM

Goldman cuts AT&T estimates

AT&T Inc.'s profit estimates were cut at Goldman Sachs Group Inc. on concerns about the slowing economy and rising wireless competition. Analyst Jason Armstrong removed the biggest U.S. mobile-phone company from his "Americas conviction buy list." He maintained a "buy" rating on the company. Armstrong cut his 2008 profit estimate for the Dallas-based company to $3.01 a share from the previous estimate of $3.10. He lowered his 2009 profit estimate to $3.36 a share from $3.55.

Report: SK Telecom covets Sprint

South Korea's SK Telecom Corp. is in talks to buy struggling U.S. wireless carrier Sprint Nextel Corp., CNBC reported Tuesday. An agreement would be at best weeks away, CNBC said, citing people familiar with the talks. Sprint spokesman James Fisher had no comment. No SK Telecom representatives were available in the early morning hours, Korean time. CNBC reported that private equity firms would provide financing for the deal.

NAACP gives AT&T high marks

Cincinnati —- Corporations should make a greater effort to buy goods and services from black vendors, the National Association for the Advancement of Colored People said in a report released Tuesday at its convention. The report card indicated improvement in scores within each industry surveyed, but more progress is needed —- especially in the area of supplier diversity, said Dennis Courtland Hayes, NAACP interim president and chief executive. AT&T Corp. led the rankings for the telecom industry.

TRANSPORTATION

British Airways to cut capacity

British Airways PLC, Europe's third-largest carrier, will cut passenger capacity and freeze employee recruitment as it struggles to avoid losing money this year. Breaking even in the 12 months through March will be a "considerable achievement," and the airline must "make changes" to report a profit, Chairman Martin Broughton said Tuesday at the shareholders meeting. The London-based carrier will reduce capacity by as much as 5 percent this winter to keep expenses down, CEO Willie Walsh said.

TSA to add inspection devices

The Transportation Security Administration will triple the number of devices at airports that can detect bombs under airline passengers' clothing. The purchase of 80 Passenger Imager machines will bring the total in use next year to 120 at 21 airports, agency spokesman Christopher White said Tuesday.

American tries to thin pilot ranks

Dallas —- American Airlines is cutting 200 pilot jobs as it sheds 8 percent of its work force. American, the nation's largest airline, gave its pilots union a plan Tuesday that includes incentives for senior pilots to leave voluntarily. A spokesman for the Allied Pilots Association said the union needed time to review the proposal. American has about 8,500 pilots.

Earnings rise 19% at CSX

Freight railroad operator CSX says strong demand for export coal, grain and metals drove its second-quarter earnings up 19 percent. The Jacksonville-based company earned $385 million, or 93 cents per share, compared with $324 million, or 71 cents per share, a year earlier. Excluding tax-related gains, CSX Corp. earned 89 cents in the 2008 period. Revenue rose 15 percent to $2.9 billion.

Report suggests more flight delays

Federal Aviation Administration and Department of Transportation actions that are being implemented will have a limited effect on reducing flight delays during the summer compared to last year, according to a U.S. Government Accountability Office study released Tuesday. "DOT's and FAA's capacity-enhancing initiatives and demand-management policies may help reduce delay, but the collective impact of these actions on reducing delay in 2008 is limited," the GAO concluded.

UTILITIES / ENERGY

Gasoline demand declines again

U.S. gasoline demand fell 5.2 percent last week, the 12th consecutive decline, a MasterCard Inc. report showed. Motorists bought an average of 9.43 million barrels of gas a day in the week ended July 11, down from 9.9 million a year earlier.