IN BRIEF

Station Casinos lays off 70 workers

Station Casinos laid off nearly 70 workers at the corporate level because of the slowing economy, the company confirmed late Thursday.

Spokeswoman Lori Nelson confirmed the number but would not say which departments were affected, saying only it was a mix of "corporate management and support staff."

"We continue to be impacted by the economy," Nelson said. "With no immediate signs of let up, we had to take these measures."

In February, the locals gaming company said "economic conditions" had led to some layoffs at the property level. However, Station Casinos declined to discuss how widespread those layoffs have been.

DEARBORN, Mich.

Ford posts profit but still sees loss for year

Despite a surprise profit of $100 million for the first quarter, Ford Motor Co. said Thursday that it still expects to lose money this year as the U.S. auto market deteriorates.

But company CEO Alan Mulally reiterated his promise that restructuring will return Ford to black ink for 2009.

The profit, Ford's first since the second quarter of last year, came even during a time when concerns about the U.S. economy kept many car buyers away from showrooms. Ford sales were off about 9 percent for the quarter, and the trend away from trucks and sport utility vehicles accelerated, hurting its bottom line.

Yet Ford said it earned money anyway because of strong profits in Europe and South America, manufacturing cost reductions and hedging on commodity price increases.

COLUMBUS, Ohio

Arby's owner snags Wendy's at $2.3 billion

After at least two rejections, billionaire Nelson Peltz has finally succeeded in landing Wendy's in a $2.3 billion deal that would add the chain known for its square burger and chocolate Frosty dessert to his ownership of Arby's and its roast beef sandwiches.

Now, the investor known for agitating corporations to boost their stock price has to figure out how to make both profitable while the economy slumps and more Americans are saving money on food and fuel by staying home to eat.

Atlanta-based Triarc Cos., owned by Peltz, said Thursday it will pay about $2.34 billion in an all-stock deal for the nation's third-largest hamburger chain started in 1969 by Dave Thomas. Wendy's had rejected at least two buyout offers from Triarc.

NEW YORK

Trump calls for lawsuit to block smoking ban

Donald Trump says Atlantic City's 11 casinos should sue to block a smoking ban from taking effect in October.

The real estate magnate, who is chairman of a company that owns three casinos in Atlantic City, says the Atlantic City Council put New Jersey at a competitive disadvantage when it approved a ban Wednesday night.

Trump called on the Casino Association of New Jersey to file a lawsuit seeking to overturn the ban. However, Trump said he would not file one on his own.

The association's president did not immediately return a call for comment. Joseph Corbo has previously said the industry would reluctantly go along with a ban if it had enough time to prepare.

LAS VEGAS

Hooters Hotel owners have ratings cut more

Moody's Investors Service has cut some ratings further into junk status for the owners of the Hooters Hotel in Las Vegas, expressing skepticism about the sale of the property.

The agency cut 155 East Tropicana LLC's corporate family rating, probability of default rating, and rating on $130 million in senior secured notes to "Caa3" from "Caa1," which is non-investment grade, also referred to as "junk" status.

Moody's also affirmed a SGL-4 speculative grade liquidity rating. It assessed the outlook as negative.

Hedwigs Las Vegas Top Tier LLC, a Santa Monica, Calif.-based investment firm, initiated purchase of the off-Strip casino in April 2007.

"Given the prolonged turbulence in the credit markets, the rating agency expresses skepticism regarding the materialization of the transaction in its current terms," the agency said.

WASHINGTON

Execs: Merger to have little effect on travel

The chief executives of Delta and Northwest airlines vowed Thursday that their merger would have little effect on air travelers, saying the merged Delta would offer more flights but would not lead to higher ticket prices.

They also suggested that the merger would result in fewer than 1,000 layoffs, most of which would come from corporate staffs rather than pilots or flight attendants.

While the executives faced some general questions, most lawmakers at two hearings expressed less concern with the Delta-Northwest deal than with those that could follow it.

Countrywide CEO earns millions in pay

Angelo Mozilo, the chief executive of Countrywide Financial Corp., earned $10.8 million and cashed out $121.5 million in stock gains as his company got hammered by losses on subprime loans last year.

The stock gains were earned when the 70-year-old executive exercised stock options and immediately sold them through so-called "automatic trading plans," according to an SEC filing released Thursday.

As previously reported in the Los Angeles Times, these plans usually allow executives to sell shares in a regular pattern without worrying about insider-trading allegations.

NEW YORK

Amid jobless claims news, Treasurys slide

Treasury prices fell Thursday as investors sold government bonds after a report showed a surprising drop in unemployment claims.

The benchmark 10-year Treasury note fell 0.72 points to 97.38 and yielded 3.82 percent, up from 3.74 percent late Wednesday, according to BGCantor Market Data. Prices and yields move in opposite directions.

The 30-year long bond fell 0.69 points to 97.31 and yielded 4.54 percent, up from 4.51 percent late Wednesday.