IN BRIEF
NEW YORK
Profits exceed forecast for retailer Tiffany & Co.
Tiffany & Co. on Wednesday reported third-quarter earnings that topped Wall Street expectations, but the luxury goods retailer warned of job cuts and lowered its 2008 outlook as consumers scale back on spending amid a tough economy.
Tighter credit and widespread layoffs have caused many consumers to cut back on nonessentials and the forecast is gloomy for retail's crucial holiday shopping season.
For the three months ended Oct. 31, the New York-based jeweler earned $43.8 million, or 35 cents per share, less than half its year-ago profit of $101.5 million, or 73 cents per share, which included a gain of 48 cents per share on the sale-leaseback of its Tokyo flagship store. Excluding one-time items, profit actually rose 13 percent in the latest period.
Analysts polled by Thomson Reuters expected earnings of 25 cents per share.
Sales slipped 1 percent to $618.2 million as weak U.S. markets offset increased sales abroad.
Deere & Co. profits dip 18 percent in quarter
Deere & Co.'s quarterly profit fell 18 percent as weaker results in its small equipment and credit divisions, coupled with higher expenses, overwhelmed strong sales of farm machinery.
Deere said it earned $345 million, or 81 cents per share, for the fourth quarter, down from $422.1 million, or 94 cents per share, in the year-earlier period. Results included pretax expenses in the latest quarter of about $50 million, or 8 cents per share, to close a facility in Welland, Canada.
Analysts surveyed by Thomson Reuters, on average, predicted earnings per share of 99 cents on revenue of $6.84 billion. Estimates typically exclude one-time items.
TORONTO
Audit results may keep BCE deal from closing
The largest leveraged buyout in history is unlikely to close after the Canadian telecom company BCE Inc. said Wednesday an audit has found the proposed $35 billion deal to take the company private may not meet solvency requirements.
An investment group led by the Ontario Teachers Pension Plan Board and several U.S. partners had expected to complete its deal for BCE, the parent of Bell Canada, on Dec. 11. It would have been the biggest takeover in Canadian history.
A preliminary review by accounting firm KPMG found that BCE would not meet the solvency tests of the privatization agreement, partly due to the amount of debt involved in the transaction and current market conditions, BCE said. The company must meet the solvency requirements for the acquisition to be completed.
BCE spokesman Mark Langton said if KPMG doesn't change its mind, the deal is unlikely to proceed because the auditor must clear it as a condition of closing.
Redstone proposes selling some holdings
Media mogul Sumner Redstone has proposed selling part of his family holding company's movie theater circuit to pare down its debt, according to people close to the situation.
A restructuring plan submitted to bankers this week by Redstone's private holding company, National Amusements Inc., also offered to shed stakes in video game company Midway Games Inc. and slot machine maker WMS Industries Inc., according to one person.
"Just selling Midway Games and WMS would not solve all of his problems, and I guess that means tapping into the theater chain," media analyst Harold Vogel said.
National Amusements has $1.6 billion in debt, including repayment of an $800 million bank loan due next month. Determining the value of the 1,500-screen theater chain is difficult.
DETROIT
Daimler accused of misleading Cerberus
Relations between Chrysler's current and former owners turned ugly Wednesday when private equity firm Cerberus Capital Management LP accused Daimler AG of "intentionally and materially" misleading Cerberus before the German automaker sold Chrysler last year.
Both sides slugged it out with dueling statements. Cerberus claimed Daimler breached the sale contract, while Daimler called the allegations absurd.
Cerberus' statement accused Daimler of misrepresenting changes in underwriting practices for vehicle financing and leasing. That means Cerberus is alleging that Daimler inflated the value of its lease and loan portfolio by lending money to buyers who didn't meet its lending standards, said said Peter Henning, a former Securities and Exchange Commission attorney.
BEIJING
China interest-rate cut is biggest in 11 years
China announced its biggest interest rate cut in 11 years on Wednesday to spur private borrowing and support a multibillion-dollar stimulus package to boost slowing economic growth.
The European Union's administrative body, meanwhile, urged the bloc's 27 member countries to join together in making euro 200 billion (US$256.22 billion) in spending and tax cuts to boost economic growth and bolster the confidence of consumers and businesses.
China's 1.08 percentage-point cut -- the fourth rate reduction in three months -- reflects the government's urgency about raising private consumption and investment to supplement state spending on the stimulus package.
Interest on a one-year loan will fall to 5.58 percent, effective Thursday, while interest paid on deposits will drop to 2.52 percent.
HOUSTON
Possible Russia output cut pushes oil prices up
Oil prices rose Wednesday as a large interest rate cut in China and news of a possible Russian output cut appeared to counter another round of dour economic news and larger-than-expected crude stockpiles in the U.S.
Trading followed this week's established pattern of volatility in the oil markets.
In Nymex trading, light, sweet crude for January delivery jumped more than 7 percent, or $3.67 to settle at $54.44 a barrel.
NEW YORK
Treasury prices follow stock gauges higher
Treasury prices rose along with stock indexes ahead of the Thanksgiving holiday.
The 10-year note rose 1.47 to 106.47 and yielded 3 percent, down from 3.09 percent.
The 30-year bond rose 2.13 to 117.84 and yielded 3.52 percent, down from 3.62 percent.
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U.S. financial markets will be closed today for Thanksgiving.
