Delta Air Lines, Inc.

$5.28

-9.59%

Atlanta-based Delta Air Lines said it is folding its Delta Technology subsidiary into Delta, effective Jan. 1. Delta said the move will reduce costs associated with operating a technology subsidiary.

Delta Technology started in 1994 as a joint venture with AT&T called TransQuest to provide tech services to Delta and sell services to other airlines. Delta said then it would spin off 1,200 of its employees into the venture and hoped to save $40 million annually with the new company.

The plan didn't pan out. The joint venture was dissolved, and the name changed to Delta Technology. Over time the company evolved to focus on serving Delta.

—- Kelly Yamanouchi

Zep records small profit for quarter

Higher raw material costs hit Zep in its fiscal third quarter, but the Atlanta-based maker of cleaning products said Wednesday that it managed a wee profit.

Zep reported net income of $200,000, or a penny per share, vs. $3.6 million, or 17 cents per share, in the year-earlier quarter.

The most recent three-month period included a $9.3 million restructuring charge.

Excluding the charge, the company —- which was spun off of Acuity Brands last year —- would have earned $6 million, representing 28 cents per share. Wall Street expected 28 cents.

"We are pleased with the progress we made this quarter, despite operating in a challenging environment," John K. Morgan, Zep's chairman, president and chief executive, said in a statement.

"We remain committed to our long-term strategy of leveraging product and manufacturing leadership to create a business capable of achieving sustained, profitable growth."

Zep also reduced its debt by $10 million in the quarter.

—- Peralte C. Paul