Posted on Sat, Nov. 1, 2008
In the Region
PSEG's net income up 30 percent
Public Service Enterprise Group Inc. reported a 30 percent increase in net income for the third quarter, to $656 million, or $1.29 a share. Excluding a gain on the sale of electric distribution and transmission business SAESA Group and other items, earnings fell to 94 cents from 97 cents. Analysts had expected earnings of 99 cents on revenue of $3.74 billion. The company also reported that, as of Sept. 30, it had $658 million left of its $750 million to be used to buy back its common stock. The repurchase program was authorized in July to be executed over an 18-month period. The New Jersey energy company, owner of the state's largest utility, also said it now sees 2009 earnings at the lower end of its previous forecast of $3.05 to $3.35 a share.
- Miriam Hill
Harrah's says it will cut jobs
Harrah's Entertainment Inc., which last year represented about 40 percent of Atlantic City's $5 billion total revenue with its four casinos there, announced job cuts at the four properties yesterday. The company blamed a deteriorating economy and slots competition from Pennsylvania and New York. It said the number of jobs affected was not known yet, but that the cuts would be "across the board" at the Bally's, Caesars, Showboat and Harrah's Resort casinos. Figures from the New Jersey Casino Control Commission show the four Harrah's Entertainment casinos in Atlantic City employed 16,034 in September. "Circumstances have forced us to eliminate positions to insure that we are operating within current business volumes," company spokeswoman Alyce Parker said in a statement.
- Suzette Parmley
Cephalon can expand drug's use
Cephalon Inc., Frazer, said it won U.S. approval to expand use of its cancer drug Treanda to patients with a hard-to-treat form of lymphoma. It said Treanda was cleared for patients with indolent non-Hodgkin's lymphoma that gets worse during or after treatment with Rituxan, sold by Genentech Inc. and Biogen Idec Inc. Treanda already can be used for chronic lymphocytic leukemia.
- Bloomberg News
Moody's reviews PharmaNet's rating
Moody's Investors Service placed the ratings of Princeton's
PharmaNet Development Group Inc. under review for possible downgrade. Moody's is concerned about PharmaNet's ability to refinance its $144 million 2.25 percent convertible senior notes. The ratings agency said difficult credit conditions and an unusually high number of cancellations of the company's drug-testing contracts could hurt PharmaNet's financial performance.
- Miriam Hill
US Airways to charge for pillows
US Airways Group became the first major airline to announce it will charge passengers for a pillow and blanket.
US Airways told employees it would sell pillow and blanket sets for about $7, although the exact date for sales to begin has not been set. The region's dominant airline in June became the first large carrier to charge $2 for soft drinks. US Airways also charges for choice window and aisle cabin seats. The "a la carte" pricing program is expected to generate $400 million to $500 million annually in new revenue.
- Linda Loyd
Vanguard reopens two funds
Vanguard Group, Malvern, is seeking new investors for its International Explorer and Precious Metals and Mining funds after stock-market losses cut their size by more than one-third. Assets in the $1.5 billion International Explorer, which had been closed to new cash in 2004, fell 44 percent this year, while the $3 billion Precious Metals, closed two years later, is down 35 percent. Both funds have been taking deposits from current clients.
- Bloomberg News
Safeguard Scientifics reports a loss
Safeguard Scientifics Inc. reported consolidated net loss of $4.1 million, compared with $15.6 million in last year's third quarter, excluding discontinued operations. The Wayne company had a net loss per share of 4 cents, compared with a loss of 20 cents per share in last year's third quarter. It said its consolidated revenues for the third quarter were $19 million, up 59 percent from the $11.9 million reported in last year's comparable quarter, excluding discontinued operations. The company invests in technology and life-sciences firms.
- Roslyn Rudolph
Elsewhere
Consumer spending drops
Americans are cutting back sharply on their spending, trimming it in September by the largest amount in four years. The
Commerce Department reported that consumer spending dropped 0.3 percent in September, the biggest setback since June 2004. It followed two months in which spending was flat and left activity for the quarterly falling by the biggest amount in 28 years. Consumer spending accounts for two-thirds of total U.S. economic activity
- AP
JPMorgan to modify more mortgages
JPMorgan Chase & Co. said it is expanding its program to modify mortgages in an effort to avoid foreclosures on up to $70 billion in loans. The enhanced program will include the opening of 24 regional counseling centers, the hiring of 300 additional loan counselors, new financing alternatives, reaching out to borrowers with pre-qualified modification terms, and a new process to independently review each loan before it is moved into foreclosure. Chase said the changes are expected to be implemented in the next 90 days, and until those changes can be made, it will not put any loans into foreclosure. The program will also be offered to customers with loans held by Washington Mutual Inc. and EMC. JPMorgan acquired Washington Mutual last month. EMC was a mortgage unit of Bear Stearns Cos., which JPMorgan acquired in February.
- AP
AmEx says a tough times ahead
One day after announcing plans to slash 10 percent of its global workforce,
American Express Co. painted a bleak outlook yesterday, saying it does not expect to meet its financial targets until economic conditions improve. In a filing with the Securities and Exchange Commission, American Express said it expects write-offs in its credit card portfolio to keep increasing in the fourth quarter and into next year.
- AP
Court upholds rule on analog cable
A federal appeals court upheld a rule requiring cable providers to deliver broadcasts in traditional analog format after television stations switch to digital transmissions. The rule, passed by the FCC, aims to ensure that subscribers with analog equipment can keep viewing local broadcasts after the February changeover. The
U.S. Court of Appeals for the District of Columbia rejected a petition from cable networks that said the rule would make programming harder to sell because cable systems would have redundant channels.
- Bloomberg News
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