In Brief
ATLANTIC CITY
Third-quarter data show
grim picture in Atlantic City
Quarterly financial information released Wednesday by New Jersey casino regulators paints a grim picture for Atlantic City's three most endangered casinos.
Financial figures for the third quarter of this year show big losses for the Atlantic City Hilton, which is trying to restructure its debt and hasn't made a loan payment in nearly a year and a half, and the Resorts Atlantic City, which is trying to hold on for three more weeks until new owners take over.
The numbers released by the state Casino Control Commission also show gross operating profits at Trump Marina Hotel Casino fell by more than 96 percent to just $247,000.
The lone ray of sunshine in the report was proof that nongambling revenues continue to rise at the casinos.
For the first nine months of the year, they were up 9.8 percent, led by a 20.8 percent increase in the amount of cash generated from the sale of hotel rooms.
Gross operating profits at the city's 11 casinos fell by 24.3 percent in the third quarter to $209.8 million, compared to $277 million for the same period last year. Net revenues fell by 7.5 percent for the period to $1.03 billion.
NEW YORK
Target profits rise 22.6 percent in quarter; holiday outlook rosy
Target Corp. is projecting a merry holiday as the retailer counts on a 5 percent discount for its credit and debit card customers and its storewide remodeling.
The upbeat report comes as Target reported a 22.6 percent increase in third-quarter net income, helped by improvements in its credit card business and expansion into food.
The cheap-chic discounter said it expects a key revenue measure to rise more sharply than it has in any period in the last three years as it reaps the benefits of its new 5 percent discount offer for those buying with its branded credit card or debit cards. The store remodels feature an expansion of fresh food along with brighter lighting in cosmetics and better shoe displays.
The projection means fourth-quarter revenue at stores open at least a year would top the 2.8 percent increase seen in the first quarter. Target also said it expects the holiday quarter's profits to match Wall Street estimates.
Target posted net income of $535 million, or 74 cents per share, in the quarter ended Oct. 30. That compares with $436 million, or 58 cents per share, in the year-ago period.
Revenue rose 2.2 percent to $15.61 billion.
Analysts surveyed by Thomson Reuters forecast earnings of 68 cents per share on revenue of $15.61 billion.
SPRINGFIELD, Ill.
Illinois lawmakers reviewing idea of gambling to cut deficit
Illinois lawmakers are taking a new look at expanded gambling as a way to reduce the state's massive budget deficit.
Lawmakers have talked for years about adding new casinos or putting slot machines at racetracks, but the proposals have always fallen apart. They're getting more serious attention now, with the state facing a roughly $15 billion deficit.
The plan under discussion would add five new casinos -- one in Chicago and four others around the state. Existing casinos would be allowed to expand. Six horse racing tracks would be given permission to install slot machines.
Backers hope this would generate about $1 billion a year, but critics say it would mean more gambling addiction and social problems.
OMAHA, Neb.
U.S. government's meltdown reaction lauded by Buffett
Billionaire Warren Buffett thinks the U.S. government performed well during the economic meltdown of 2008, so he wrote an admittedly tardy thank-you note to his "Uncle Sam."
The note from the chairman and CEO of Berkshire Hathaway Inc. was published by The New York Times on Wednesday on its op-ed page. Buffett apologized for not writing to thank his "uncle" sooner before reiterating his view that the government should be praised for its efforts to stabilize the economy with massive bailouts and stimulus spending.
Buffett's message was published as the Federal Reserve's latest attempt to stimulate the economy with a $600 billion bond-purchase program was being criticized on Capitol Hill. Some Republicans say the Fed is overstepping its authority with the plan and could wind up stimulating inflation instead of the economy.
DETROIT
Fiat brand set to return to
America after 30-year absence
Italian automaker Fiat is returning to the U.S. market after nearly 30 years.
Fiat named 130 U.S. dealers in 39 states Wednesday.
It also said the U.S. version of the Fiat 500 subcompact will sell for $15,500. That's almost $5,000 less than the Mini Cooper, one of the cars the tiny 500 is targeting.
Fiat plans to introduce a convertible version of the 500 next year, and electric and high-performance versions after that.
The Fiat 500 has been popular in Europe, where it went on sale in 2007. Fiat unveiled the North American version at the Los Angeles Auto Show.
Fiat pulled out of the U.S. market in 1983 because of quality problems. But the company has come a long way, and last year took over management of Chrysler Group.
NEW YORK
Premium streaming service started with price cut by Hulu
Online video site Hulu formally launched its premium streaming service Wednesday and cut the price to $8 a month.
The service launched as a preview about five months ago for $2 more. Hulu said subscribers will receive credit for the difference on what they already paid.
Hulu's service offers back seasons of NBC, Fox, ABC and other TV shows, such as "30 Rock" and "Glee."
The free portion of the site, which has less content, remains available. Hulu Plus, however, offers high-definition content and is available on a slew of Internet-connected devices, including the iPhone, the iPad and the PlayStation 3. The free Hulu is only available on computers.
Hulu is jointly owned by General Electric Co.'s NBC Universal, Fox owner News Corp., ABC owner The Walt Disney Co. and Providence Equity Partners. Earlier this month, Hulu said it is on track to generate more than $240 million in revenue this year, more than double 2009 revenue of $108 million.
WASHINGTON
Alcoholic energy drink makers issued warning by regulators
The Food and Drug Administration issued warning letters Wednesday to four manufacturers of alcoholic energy drinks often consumed by college students, saying the caffeine added to their beverages is an "unsafe food additive."
FDA Commissioner Margaret Hamburg said the combinations of caffeine and alcohol in the drinks is a public health concern and can lead to "a state of wide-awake drunk." Evidence has shown their consumption has led to alcohol poisoning, car accidents and assaults, she said.
The government could eventually seize the products if the companies continue to make and market them. The companies have 15 days to respond to the letters and either explain how they will take their products off the market or defend their drinks as safe.
The government came under increasing pressure as college students have been hospitalized in recent months after consuming the drinks. The FDA said experts have raised concerns that the caffeine in the drinks can mask a person's feeling of intoxication, leading to risky behavior. Many of those who consume the drinks are underage drinkers.
LOUISVILLE, Ky.
Get creative, brief: KFC offers scholarship for single tweet
High school seniors trawling the Internet for college scholarships may want to bone up on their tweeting skills.
Louisville-based KFC is offering a $20,000 scholarship for a single tweet. With a character limit of 140, that's $142 per character for the winner.
Applicants must use their brief statement to say why they are deserving of the Colonel's Scholars scholarship. Tweets must include the hashtag KFCScholar, and only high school seniors may apply.
The contest started Wednesday and runs through Nov. 26. The winner will be announced Dec. 1.
"It's judged based on quality, creativity, ability to tell a story on why they should receive the award, and the entrepreneurial drive and desire to pursue a college education," KFC spokesman Rick Maynard said.
Some early entries stressed high-minded ambition and work ethic.
One professed a devotion to "making a positive change to our society and the way we think through science." Another said, "I taught 4 classes myself and have to travel 30+ minutes when I work for Catholic youth."
Another applicant took a different tact, professing himself a loyal customer: "Holy Heck, I love that chicken, Remember that when your pickin', The guy to give that 20k, That guy is here, right this way."
