Finance & Business World

Lowe's Cos. Inc. reports lower earnings for its fourth fiscal quarter and the year ended Feb. 1.

In the latest quarter, the Mooresville-based home-improvement retailer's earning fell to $408 million, or 28 cents per diluted share, from $613 million, or 40 cents per diluted share, in the year-ago period.

Analysts had forecast Lowe's would earn 25 cents per share in the latest quarter.

Sales dropped to $10.38 billion from $10.41 billion.

For the year, net income declined to $2.81 billion, or $1.86 per diluted share, from $3.1 billion, or $1.99 per diluted share.

Lowe's exceeded analysts' consensus estimate of $1.84 per share in the latest period.

Revenue for the year increased 2.9 percent to $48.3 billion online payday loan.

"Fourth-quarter and fiscal year 2007 sales fell short of our plan as we faced an unprecedented decline in housing turnover, falling home prices in many areas and turbulent mortgage markets that impacted both sentiment related to home-improvement purchases as well as consumers' access to capital," says Robert Niblock, chief executive.

During the latest quarter, Lowe's opened 72 stores, including two relocations. As of Feb. 1, the company (NYSE:LOW) operated 1,534 stores in the United States and Canada.

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An indicator of the economy’s future performance fell for the fourth straight month in January, according to a report released Thursday by the Conference Board.

The Conference Board’s index of leading U.S. economic indicators fell 0.1% to 135.8 last month, matching the 0.1% decline logged in December. The decline was in line with economists’ expectations, according to Briefing.com.

Falling stock prices, along with a drop in housing permits, contributed to the slip. However, money supply, lower-than-expected unemployment and positive consumer expectations helped keep the decline in check.

Positive measurements have not been strong enough to fully offset the negative ones, said Ataman Ozyildirim, an economist at the Conference Board, a business research group quick payday loan.

"There’s not much momentum in the economy," he said.

A 0.1% decrease is slight, according to Ozyildirim, but the weakness in January comes amid a string of monthly declines.

The index of leading indicators, which is designed to signal turning points in the business cycle, has fallen 2% in the six months through January.

According to the group, current index measurements show the U.S. economy at greater risk of economic weakness. The group also said slow growth will persist over the next few months. 

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SpongeBob SquarePants, Mickey Mouse and Pokemon are officially persona non grata on Chinese prime time.

China is extending a ban that virtually locks out all foreign cartoons from airing between 5 p.m. to 9 p.m. in a bid to protect its fledgling domestic cartoon industry.

According to a new ruling Wednesday by the State Administration of Radio, Film and Television, no foreign cartoons or programs introducing foreign cartoons can be shown during "the golden hours" on all domestic cartoon channels and children channels starting May 1.

The move is intended to help "spur the domestic cartoon industry," the agency said.

Only domestic cartoons approved by SARFT are allowed to be aired, according to the regulations. Cartoons co-produced by domestic and foreign producers will have to get approval.

The new regulation expands an earlier ban, imposed in August 2006, that kept foreign cartoons off the air between 5 p.m. and 8 p.m. Domestic cartoon programming increased by 38 percent, SARFT said.

In recent years, a huge influx of foreign cartoons, especially from Japan, have flooded the airwaves, becoming highly popular with Chinese children.

Recent regulations have been aimed at allowing the country’s struggling animation studios space to compete payday loans online. The ban will "enhance the SARFT’s management over cartoon programs and will create a favorable environment for the domestic cartoon industry," the agency said.

Aside from foreign cartoons, China has made concerted efforts to control other aspects of pop culture, recently issuing bans against sexually suggestive audio and video products as well as films that contain horror or supernatural elements.

Regulators have also issued new warnings against pornography and restrictions on video-sharing Web sites, which are accused of broadcasting pornography. 

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Patches containing the prescription painkiller fentanyl were recalled for the second time in a week Monday, because of a flaw that could cause patients or caregivers to overdose on the potent drug inside.

Sold in the United States by Actavis South Atlantic, the newly recalled patches have both this name and the company’s former name, Abrika Pharmaceuticals, on their packaging. The old name is on the pouches that contain the patches and the new name is on the outer carton.

Last Tuesday PriCara, a division of Johnson & Johnson (JNJ, Fortune 500), announced a recall of fentanyl patches manufactured by its affiliate ALZA.

Monday’s recall includes 25-microgram-per-hour, 50-microgram-per-hour, 75 microgram-per-hour and 100 microgram-per-hour patches with expiration dates of May through August 2009.

Some of the patches may have a defect that can cause them to leak, putting patients and caregivers at risk of coming into direct contact with the powerful "opioid" drug inside fast cash advance. This could result in difficulty breathing and a potentially fatal overdose.

The company has not received any reports of injuries related to this defect.

Damaged patches should be flushed down the toilet and not handled. Skin that has been exposed to the gel should be thoroughly rinsed with water, but not washed with soap.

The recalled patches were manufactured for Actavis by Corium International. Activis is a division of Actavis Group. 

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H.J. Heinz Co., one of the world’s largest food companies, said Friday it anticipates full-year earnings above year-ago results.

The company narrowed its profit forecast to the top end of its prior forecast for earnings in a range of $2.60 to $2.62 per share, which would be a 9% to 10% increase from the prior year.

In September, the company said it expected profit near the upper end of previous earnings guidance of $2.54 to $2.60.

Analysts polled by Thomson Financial predict full-year net income of $2.62 per share.

Heinz, which makes ketchup and sauces, anticipates third-quarter earnings of 67 to 68 cents per share on an increased tax rate $1500 payday loan. It expects sales growth of about 14% partly due to the strength of its Heinz brand.

Analysts expect profit of 63 cents on revenue of $2.54 billion.

Heinz (HNZ, Fortune 500) expects third-quarter operating income will rise 8% on solid performance in North American consumer products, Europe, Asia/Pacific and other areas, partially offset by the U.S. foodservice business.

The company will report its third-quarter results on Feb. 26.

In Iowa, Heinz has factories in Cedar Rapids and Muscatine. 

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Vonage Holdings Corp., which provides phone service over broadband lines, reported a narrowed fourth-quarter loss Wednesday as it scaled back on marketing and cut other costs.

Keeping customers happy is turning out to be the company’s biggest challenge: 3% of its customers cancel service every month, a figure chief executive Jeff Citron called "unacceptable."

The percentage of subscribers canceling, also known as churn, was up from 2.3% in the same period a year ago.

"Most of the churn is self-inflicted as a result of the poor user experience," Citron said in an interview. He said the company was focused on improving customer care, and hired a new head of that department last week.

Vonage’s (VG) fourth-quarter loss totaled $11.1 million, or 7 cents per share. Excluding charges for litigation and severance payments, the loss was 6 cents. Analysts polled by Thomson Financial had predicted a loss of 10 cents.

In last year’s fourth quarter, the company lost $117.1 million, or 76 cents.

Revenue rose 19% to $215.9 million, up from $181.5 million last year. Analysts were looking for $219.4 million in revenue.

Shares fell 4 cents, about 2 percent, to $1.99 in pre-market trading.

Vonage added 56,000 net subscriber lines during the quarter to end the year at nearly 2.6 million lines.

The Holmdel, N.J.-based company spent $63 million on marketing, up slightly from the third quarter but down 34% from a year ago payday loans. Vonage has been an aggressive advertiser online and on television, but has been trying to make its efforts more selective and effective, which appeared to be working in the fourth quarter: The marketing cost of acquiring one new subscriber line was $223, down from $306 a year ago.

Vonage also said it would restate its results for the second and third quarters of 2007. Stock compensation expenses were overstated by $14 million because of the departure of its chief executive and other personnel.

For all of 2007, Vonage lost $265 million, or $1.70 per share, down from a loss of $339 million, or $3.59, in 2006. Revenue was $828 million, up 36% from $607 million. 

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Starbucks Corp. said it will offer limited free WiFi service at its stores beginning this spring.

Under the Seattle coffee giant’s (NASDAQ: SBUX) plan, customers with a Starbucks card can use up to two hours of free WiFi service per day. AT&T Inc. (NYSE: T) broadband customers will have unlimited free WiFi access.

After two hours, non-AT&T customers can purchase additional WiFi access for $3.99 for an additional two hours, or monthly memberships will cost $19.99 cashadvance.

Starbucks said it will phase in its new WiFi plan "on a market-by-market basis with store implementation beginning this spring and completed by the end of the year."

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The World Trade Organization has ruled against the European Union’s import tariffs for bananas, officials said Friday, possibly opening the door to millions of dollars in U.S. commercial sanctions.

The confidential decision - distributed earlier this week to the parties and confirmed by U.S. and EU officials - is an important development in the decade-old WTO dispute pitting Latin American countries and the United States against the EU. The EU can still appeal.

The verdict will be closely followed by Chiquita Brands International Inc. (CQB, Fortune 500), the Cincinnati-based produce distributor. The tariff costs Chiquita $1 per share annually, according to Barry Sine, an Oppenheimer & Co. analyst.

The WTO has consistently ruled against how Brussels sets tariffs for bananas, forcing it to overhaul a system that grants preferential conditions for producers from African and Caribbean countries, mainly former British and French colonies. While the EU repeatedly has tinkered with the import rules in recent years, none of the changes has withstood challenges at the trade body.

"The United States prevailed in its challenge," the Office of the U.S. Trade Representative said in an e-mailed statement. "This is the 10th proceeding against the [EU]. We hope that the [EU] will finally ensure that it puts in place a bananas import regime that is WTO consistent."

Trade officials said the latest ruling closely follows the findings by a separate panel that found in Ecuador’s favor in December. Both decisions remain confidential and are only expected to be released in the coming months.

Michael Mann, spokesman for EU Farm Commissioner Marian Fisher Boel, confirmed the EU’s loss in the latest ruling, but criticized the WTO panel for taking a "purely formalistic approach that found against something that does not exist anymore" - a reference to new rules for European banana imports that came into effect this year paydayloans. Mann also expressed disappointment that confidentiality arrangements had been broken.

The case centered on a banana tariff established by the EU in 2006 - €176 ($258) per ton - which the bloc claimed was in line with WTO rulings. But the U.S. rejected the argument. Ecuador, the world’s largest banana producer, contended in its complaint that the new tariff cost it market share in Europe, hurting more than 1 million Ecuadoreans dependent on the banana industry.

The U.S. has never declared the loss suffered by American companies because of the tariff, while Ecuador said last year that it had lost $131 million in the first 15 months of the tariff’s existence. If Washington ultimately prevails in the dispute, it could levy retaliatory taxes on European goods equal to the amount of damage incurred by American companies, as recognized by the WTO.

The EU can lodge a final appeal in the disputes against the U.S. and Ecuador. Colombia has also initiated a banana case against the EU, but that is still at an earlier stage.

Latin American bananas currently have around 60% of the EU banana market, while African and Caribbean producers have 20%, according to EU officials. Bananas grown in the EU - mostly on Spanish and French islands - account for another 20%.

The banana tariff case was first brought to the Geneva-based trade referee in 1996, but has since spawned a series of disputes as trade lawyers wrangled over procedural intricacies and legislation that had previously never been tested.

The U.S., in 1999, and Ecuador a year later both won the right to impose trade sanctions on European goods after the WTO found the EU’s rules to be illegal. A deal in 2001 gave the EU five years to comply with WTO rulings. 

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The number of seats on flights to Hawaii is declining compared to a year ago.

The Hawaii Department of Business, Economic Development and Tourism said Monday that airline capacity will drop 0.9 percent to 2,513,256 seats in the current three-month period, February through April, compared to the same period a year ago.

Airlines departing from cities on the U.S. Mainland are expected to increase seating capacity by 3.7 percent, led by double-digit growth from planes originating in Atlanta, Denver, Phoenix, Oakland, Las Vegas, San Diego and Seattle.

But seats on planes traveling to Hawaii from international locations will drop 12.4 percent creditscore.

The largest seat declines will be on flights from Tokyo and Osaka, Japan; Vancouver, Canada; and Sydney, Australia.

In Hawaii, planes traveling to Lihue, Kauai; Kahului, Maui; and Kona on the Big Island will offer more seats.

But flights to Honolulu will have 3.3 percent fewer available seats, while flights to Hilo on the Big Island will fall by over 10 percent.

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South Korea's inflation accelerated in January at the fastest pace in more than three years as costs of industrial goods and fuel rose following a surge in crude oil prices.

The consumer price index rose 3.9 percent from a year earlier, compared with a 3.6 percent gain in December, the statistics office said in Gwacheon today. The increase was the biggest since September 2004. Prices rose 0.5 percent in January from December.

Bank of Korea Governor Lee Seong Tae said this month inflation is expected to accelerate even as the risk of a U.S. recession increases. Central banks face a “minor replay'' of the stagflation of the 1970s as inflation picks up and economic growth slows, former Bank of England policy maker Charles Goodhart said.

“Growth is slowing and prices are rising,'' said Chun Chong Woo, senior economist at SC First Bank Ltd. in Seoul. “The central bank is faced with the task of having to refrain from raising rates and stabilize prices at the same time.''

Chun expects the central bank to trim rates by 75 basis points in the first half of this year to help sustain economic growth.

Rising food and fuel costs are pushing up prices around the region. Thailand's inflation rose at the fastest pace in 18 months in January, a report showed today.

Oil Prices

Rising oil prices push up costs for companies and also South Korea's import bill. The price of Dubai crude oil, South Korea's benchmark, jumped 52 percent since the beginning of last year. South Korea purchases 97 percent of its energy it needs from overseas.

The yield on the three-year government bond was rose 1 basis point to 5.05 percent at 4:01 p.m. in Seoul.

On top of rising costs, reports showed South Korean manufacturers' confidence dropped to a one-year low and factory production fell for a second month, signs the economy may be slowing. The central bank forecasts economic growth will cool to 4.7 percent this year from a 4.9 percent expansion last year.

South Korea's Kospi index has dropped 14 percent this year on concern a possible U.S. recession will roil global economic growth just as rising costs damp corporate earnings absolutely free credit report.

Central Bank

Consumer price inflation will accelerate to 3.3 percent in 2008 from 2.5 percent last year, the central bank said on Dec. 5 in its half-yearly economic outlook. The central bank aims to keep inflation between 2.5 percent to 3.5 percent target range.

“The Bank of Korea's monetary policy will have to take into account things like the very-high inflation expected in the first half of this year, still-high oil prices and the possibility of the U.S. slowdown,'' Governor Lee said Jan. 10.

The bank needs to think about “what's going to happen to inflation in the second half and our confidence indexes amid the bad signs on the U.S. economy, with priority put on inflation,'' he said.

Goldman Sachs Group Inc., which forecasts South Korea's economic growth of 5 percent, predicts the central bank to trim rates by 75 basis points this year. Lehman Brothers Holdings Inc. said it sees bigger chance of a rate cut this year.

Interest Rates

“Despite today's upward surprise in inflation, we maintain our view that the Bank of Korea will begin cutting its policy rate by the second quarter by 25 basis points, and another 25 basis points after that for a total reduction of 50 basis points over the coming year,'' said Frederic Neumann, economist at HSBC Global Research in Hong Kong.

The central bank's policy board members next meet on Feb. 13 to decide on interest rates. The bank in January kept the overnight call rate unchanged for a fifth month at a six-year high of 5 percent, after back-to-back increases in July and August.

Core consumer prices, which exclude oil and other volatile items, rose 0.6 percent from November, today's report showed. From a year earlier, core prices gained 2.8 percent.

Industrial goods prices rose 0.7 percent from December, boosted by a 1.8 percent gain in oil product costs, the report showed. The cost of agricultural, dairy and fisheries goods gained 0.2 percent from December.

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