IN BRIEF
NEW YORK
Number of people late on credit cards shrinks
The number of people three months behind on bank card payments fell 11 percent in the fourth quarter of 2008 from a year ago. Consumers restrained spending during the holidays, adding less than 2 percent to their balances, according to consumer credit tracking agency TransUnion.
The percentage of consumers behind 90 days or more on payments for their bank cards -- MasterCard, Visa, American Express and Discover -- fell to 1.21 percent in the fourth quarter from 1.36 percent a year ago.
More on-time payments came even in the face of worsening job losses and home foreclosures.
DETROIT
Unionized workers, Ford OK contract changes
Unionized workers at Ford Motor Co. have approved contract changes that include freezing wages and cutting benefits in a move aimed at helping the automaker remain competitive.
The United Auto Workers said Monday a majority of hourly workers voted in favor of modifications to the 2007 contract with Ford, eliminating cost-of-living increases and cash bonuses.
The agreement is expected to be a model for Chrysler LLC and General Motors Corp., which need to bring their labor costs in line with those of foreign auto companies' plants in the U.S. as a condition for the $17.4 billion they have received in federal loans so far.
SACRAMENTO, Calif.
McClatchy planning another staff reduction
Newspaper publisher McClatchy Co. said Monday that it will shrink its work force by an additional 15 percent as it contends with sharply declining revenue amid a deepening recession.
The 1,600 job reductions should help the publisher of The Miami Herald, The Sacramento Bee and other newspapers meet previously announced plans to save up to $110 million over the next year. McClatchy Treasurer Elaine Lintecum said the company will likely exceed that target, but the company did not release a new estimate.
Chairman and Chief Executive Gary Pruitt will take a 15 percent cut in his base salary; other executives' pay will be reduced by 10 percent.
SIOUX FALLS, S.D.
Oil prices increase to hit two-month high
Oil prices rose to the highest level in two months as investors geared up for the potential of more OPEC production cuts.
Benchmark crude for April delivery gained $1.55 to settle at $47.07 a barrel on the New York Mercantile Exchange. A barrel of oil, which last cost more than $50 in early January, had reached as high as $48.83 earlier in the day.
Oil has been ready for a recovery, and historically it's hard to find a 30-day window kinder to the market than about March 15 through April 15, said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.
NEW YORK
Eastman Chemical to take $30 million charge
Eastman Chemical Co. on Monday said it will take a $30 million charge as it cuts up to 300 jobs and reduces salaries in an effort to trim costs and keep its dividend and lowered capital spending plans intact.
This marks the second round of cost-cutting in the last four months for the Kingsport, Tenn.-based maker of chemicals, coatings, adhesives and specialty plastics products. In December, it said it was reducing contractors, part-time labor, management and its maximum vacation carry-over amount.
Monday's actions, which include lowering salaries for U.S.-based employees by 5 percent, and cutting non-critical maintenance costs, logistics costs and discretionary purchases, will further slash spending.
NEW YORK
McDonald's reports increase in sales
McDonald's Corp., the nation's No. 1 hamburger chain, posted higher comparable sales Monday but warned that the stronger dollar and higher commodity costs may take some of the meat out of its first-quarter sales and profit.
The Oak Brook, Ill.-based fast food chain on Monday said quarterly sales will likely be off by at least $600 million and earnings could be hurt by 7 cents to 9 cents per share if foreign-currency rates stay at current levels.
The company said higher commodity costs could also hurt its quarterly results, but did not specify the extent of that hit.
McDonald's said global same-store sales grew 1.4 percent in February.
GEORGETOWN, Del.
Dow Chemical reaches deal to finish buyout
Dow Chemical reached a tentative deal Monday to complete its disputed $15 billion buyout of Rohm & Haas. The combined company will shed more jobs than originally planned and freeze salaries this year.
Rohm & Haas shareholders will still get $78 per share but not all of it in cash, a concession that allows Dow to take on billions less in debt than if the deal were to close under the original terms.
The two major shareholders in Rohm & Haas, the Haas family trust and Paulson & Co., will take a $2.5 billion stake in preferred shares issued. In addition, the Haas family will make an additional investment of $500 million at Dow's option, Dow said.
NEW YORK
Bank of America pressed for details
New York Attorney General Andrew Cuomo and Rep. Barney Frank on Monday sent a joint letter to Bank of America Corp. Chief Executive Officer Ken Lewis, demanding he immediately disclose details about individual bonuses paid to Merrill Lynch & Co. employees in December.
Charlotte, N.C.-based Bank of America acquired Merrill on Jan. 1.
The letter from Cuomo and Frank, D-Mass., comes as Cuomo's office and Bank of America fight about whether details of individual bonuses should be made public.
WASHINGTON
Interest rates mixed in Treasury auction
Interest rates on short-term Treasury bills were mixed in Monday's auction. Rates on three-month bills dropped to the lowest level since late January, while rates on six-month bills rose.
The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.24 percent, down from 0.28 percent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.46 percent, up from 0.44 percent last week.
The three-month rate was the lowest since those bills averaged 0.15 percent on Jan. 26. The six-month rate was the highest since 0.495 percent on Feb. 23.
NEW YORK
Treasury prices sink as Dow dips below 6,600
As the Dow Jones industrial average tumbled below 6,600 for the first time since 1997, Treasury notes took a modest hit.
The benchmark 10-year Treasury note fell 0.03 points to 98.88. Its yield rose to 2.89 percent from 2.83 late Friday.
The 30-year bond fell 0.56 points to 98.34, and its yield rose to 3.60 percent from 3.50 percent.
