AUTOMOTIVE

Canadian union agrees to deals

Toronto —- The Canadian Auto Workers union tentatively agreed Thursday to deals with General Motors Corp. and Chrysler LLC that would replace contracts expiring in September. CAW President Buzz Hargrove said the deals keep the automakers' labor costs essentially the same and prevent the two-tier wage system used in the United States, where new hires are paid about half the hourly wages of other employees.

Nissan lowers sales forecast

Detroit —- Nissan Motor Co. has lowered its U.S. sales forecast as the weak economy continues to wreak havoc on the auto industry. Nissan North America Senior Vice President Dominique Thormann said Thursday that Nissan has lowered its industry forecast from 15.5 million vehicles to 15.2 million vehicles. Nissan's forecast covers its fiscal year, which began April 1.

DEALS

Real estate law firms merge

Kalish & Associates, a law firm in Newnan that focuses on real estate and business transactions, and Morris Hardwick Schneider, one of the largest real-estate-closing law firms in the country, have merged. "An immediate benefit is an expansion of our geographic reach, as our office will soon be Morris Hardwick Schneider's 38th office in greater Atlanta," said Deborah Kalish, founder and managing partner of Kalish & Associates. "We will be able to close transactions in any of these offices, which will be a tremendous convenience for our clients."

FINANCIAL

B of A chief sees more consolidation

The head of the nation's largest consumer bank says the ongoing economic downturn will accelerate consolidation in the industry. Bank of America CEO Ken Lewis spoke Thursday to business students at New York University. He said the nation's financial services companies are likely to come under pressure to combine and that such moves will provide more "long-term diversity and strength for the future."

FOOD / BEVERAGE

Kroger chief's pay up 22% in 2007

Cincinnati —- Kroger Co. Chairman and Chief Executive David B. Dillon received a 22 percent increase in compensation in 2007, a year when the nation's largest traditional grocer saw its profits edge higher despite fierce competition, according to an Associated Press analysis of a regulatory filing Thursday. Dillon's compensation was valued at $9.09 million, up from $7.47 million in 2006.

HEALTH CARE

After truck theft, J&J recalls drugs

A truck hauling Johnson & Johnson drugs to treat arthritis, anemia and cancer was stolen this month, prompting the company to recall other medicine with the same lot numbers. The truck was reported missing in Tennessee on May 8 while hauling Procrit, an anemia drug; Doxil, for ovarian cancer; and Remicade, an anti-inflammatory medication, J&J said Thursday in a statement. J&J recalled drugs with the same lot numbers to reduce the chance the stolen drugs could reach patients, the company said.

J&J loses ruling in Red Cross case

A decision by Johnson & Johnson to sue the American Red Cross for commercializing the Red Cross symbol may be turning into a bit of a disaster. This week, J&J lost the second round in its trademark dispute against the relief agency when a federal judge in Manhattan threw out most of the case. In a decision late Wednesday, U.S. District Judge Jed S. Rakoff said the congressional charter for the Red Cross gave it the right to use the symbol —- a Greek Red Cross against a white background —- even for business purposes.

LEGAL

Ex-software mogul convicted of fraud

Alexandria, Va. —- A one-time dot-com billionaire was convicted Thursday of stock fraud and obstruction of justice after a court finding that he deceived investors in his Las Vegas software company. Charles E. "Junior" Johnson was chief executive of PurchasePro Inc., a software company that went bankrupt as the dot-com bubble burst in 2001. U.S. District Judge Walter Kelley found Johnson guilty on all counts after concluding he schemed to falsely inflate his company's revenue in the first three months of 2001.

MANUFACTURING

Oilman invests in wind power

Maverick oilman T. Boone Pickens has placed a $2 billion bet on wind power in the first phase of a four-step project to build the world's largest wind farm in Texas. Pickens said the total cost of the deal will grow considerably after the initial investment in General Electric Co. turbine technology. Pickens' Mesa Power said the Pampa Wind Project in the Texas Panhandle will eventually cover 400,000 acres and generate enough power for more than 1.3 million homes.

Officials: Military copters sabotaged

Ridley Park, Pa. —- Investigators have concluded that two military helicopters were vandalized on the production line at a Boeing factory near Philadelphia, the Defense Department said Thursday as it offered a reward in the case. Federal officials were handing out fliers to workers at the Boeing Rotorcraft Systems plant listing a $5,000 reward in the damaging of the two H-47 Chinook helicopters.

Lockheed wins big GPS contract

Washington —- Lockheed Martin Corp. beat out Boeing Co. to win an Air Force contract worth up to $3.57 billion to build as many as 12 next-generation global positioning satellites, the Pentagon said Thursday.

REAL ESTATE

Mortgage rates down slightly

Washington —- Rates on 30-year mortgages edged down this week to their lowest point in a month. Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.01 percent for the week ended May 15. That was down from last week's 6.05 percent. Five-year adjustable-rate mortgages dropped to 5.57 percent from 5.67 percent. One-year adjustable-rate mortgages fell to 5.18 percent from 5.29 percent. However, rates on 15-year fixed-rate mortgages, a popular choice for refinancing, held steady at 5.60 percent.

Home builders more pessimistic

Washington —- A reading of U.S. home builders' sentiment scraped bottom in May, coming in just one point above its lowest level ever. The National Association of Home Builders said Thursday that its housing market index came in at 19 this month, after holding steady at 20 from February through April. It was the second-lowest reading for the index, which goes back to 1985.

Home sales, prices down in DeKalb

DeKalb County's real estate market continues to be sluggish, according to numbers from the DeKalb Association of Realtors. April sales figures showed sizable drops in the number of sales as well as sale prices. Between January and April of this year, 2,251 homes sold in DeKalb, a 21 percent drop from the same period a year ago. The average price for single-family homes fell by 15 percent, from $243,388 in April 2007 to $206,405 in April of this year. The average sale price for condominiums and townhomes dropped by 18 percent —- from 161,737 last year to $152,068 this year.

REGULATORY

Exchanges may get more scrutiny

The Senate on Thursday approved legislation that strengthens oversight of electronic energy trading platforms such as the IntercontinentalExchange, giving regulators new powers over previously exempt exchanges. The measure was part of a farm bill conference report the Senate sent to President Bush. "We are bringing sunlight to these dark markets," Sen. Charles Schumer (D-N.Y.) said at a news conference in Washington. Lawmakers said they were closing the "Enron loophole," an exemption from certain regulatory requirements lobbied for by Enron Corp. in 2000 legislation.

Senate votes to nullify FCC rule

Washington —- The Senate on Thursday night voted to nullify a Federal Communications Commission rule that allows media companies to own a newspaper and a television station in the same market. The unusual "resolution of disapproval," sponsored by Sen. Byron Dorgan (D-N.D.) and 24 other senators, was approved by a voice vote. Republican FCC Chairman Kevin Martin has described the agency's action as a "relatively minor loosening" of broadcast media ownership restrictions. The rule was approved by the FCC on a 3-to-2 party-line vote in December, with both Democrats dissenting.

RETAILING

Macy's debt rating cut by Moody's

Macy's Inc.'s debt rating was cut by Moody's Investors Service to its lowest level in 11 years after a "deterioration" in earnings and an increase in debt levels. Macy's was lowered to "Baa3," one level above noninvestment grade, from Baa2, Moody's said Thursday in a statement.

SERVICES

Company to train workers in Albany

A customer care company plans to train workers in Albany and create up to 120 jobs this year and possibly twice as many later, the Georgia Department of Economic Development announced Thursday. Employees of NEW Customer Service will work from home. "Companies like NEW are realizing the possibilities that stem from telework," said Ken Stewart, commissioner of the Georgia Department of Economic Development. NEW's Albany-area employees will provide assistance for DirecTV customers.

TECHNOLOGY

Cable beats DSL in new subscribers

New York —- Cable companies attracted more Internet subscribers than phone companies did in the first quarter, reversing a 3 1/2-year trend, according to a research report released Thursday. The 19 largest cable companies in the United States added 1.19 million broadband subscribers in the January-March period, according to Leichtman Research Group. Phone companies added 1.01 million DSL customers in the same period.

TRANSPORTATION

More passengers, fewer flights

Washington —- U.S. airlines carried nearly 3 percent more passengers in February compared with the same month last year but did so while operating fewer flights, the government said Thursday. The airlines carried 55.5 million domestic and international passengers in February, a 2.7 percent increase from the previous year, the Transportation Department's Bureau of Transportation Statistics said. But the number of flights dropped by 1.5 percent to 777,600.

Airbus, Honeywell invest in biofuel

Washington —- Plane maker Airbus and diversified manufacturer Honeywell International Inc. on Thursday said they are developing a biofuel that by 2030 could satisfy nearly a third of the worldwide demand from commercial aircraft. Along with JetBlue Airways and International Aero Engines, they plan to produce fuel from vegetation and algae-based oils that do not compete with existing food production or land and water resources. The companies did not say how much they would invest in the project.

Fuel costs crimp travel plans

New York —- High fuel prices are prompting many Americans to reconsider their Memorial Day travel plans, AAA says. The automobile club released a survey Thursday projecting that the number of Americans traveling more than 50 miles from home over the long holiday weekend will fall nearly 1 percent from last year. "Many Americans are feeling a financial pinch this holiday weekend from record high gasoline prices and other factors," said AAA Chief Executive Robert Darbelnet. About 31.7 million Americans plan to travel via car over Memorial Day weekend, a decline from 32 million last year. About 4.35 million will travel via plane, a decline of about half a percentage point from the 4.37 million who flew last year. Another 1.8 million will travel via train, bus or other type of transportation.

Southwest seeks international deal

Southwest Airlines Co. is in talks with other carriers and expects to secure a partner for international flights by its original goal of 2009, Chairman Herb Kelleher said. That target was thrown into question when ATA Airlines Inc. filed for bankruptcy and stopped flying in April. The companies had planned to expand their 2005 U.S. marketing accord to add ATA service to Mexico, Canada and the Caribbean next year. Southwest has been "assiduously talking to other airlines about the possibility of code-sharing with them," Kelleher said Thursday. "We are working feverishly on changing our system so we can accommodate international code-shares."

US Airways union approves contract

US Airways fleet service workers have ratified an agreement that brings all of the carrier's ramp and baggage employees under a single contract. The International Association of Machinists and Aerospace Workers union said that a majority of its 7,700 members accepted the contract.