Boeing's fourth-quarter profit fell 84 percent because of charges related to its work on a defunct deal to lease then sell refueling tanker planes to the Air Force and to the closing of its 717 aircraft production line. Profit was $186 million, down from $1.13 billion in the comparable quarter in 2003. Revenue rose to $13.31 billion from $13.17 billion. The refueling tanker program collapsed last year after Boeing admitted that its chief financial officer, Michael M. Sears, had illegally negotiated a job with an Air Force procurement official, Darleen A. Druyun, while she was overseeing the deal. For the full year, Boeing earned $1.8 billion, up from $718 million in 2003. Revenue increased to $52.46 billion from $50.27 billion.
Blockbuster Raises Bid for Hollywood
Blockbuster offered more for rival movie-rental chain Hollywood Entertainment Corp., hoping to stop Hollywood's pending sale to Movie Gallery. Blockbuster offered $14.50 in cash and stock per share for Hollywood beginning Friday, compared with Movie Gallery's $13.25-a-share offer.
David G. Neeleman, chief executive of JetBlue Airways, speaks during a news conference about the carrier's expansion at Boston's Logan Airport. Massachusetts Gov. Mitt Romney is at left. JetBlue signed a lease for an 11-gate terminal at Logan. It now uses two gates there.
(Elise Amendola -- AP)
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Microsoft, in an announcement in Prague by Chairman Bill Gates, offered to begin alerting the world's governments early to cyber-threats and security flaws in its software, which is prone to attack.
General Electric said it will stop accepting new orders for business in Iran. U.S. companies are not allowed to do business with nations that sponsor terrorism, but the law does not specifically bar foreign subsidiaries from such business. Through a foreign subsidiary, GE has provided hydroelectric equipment, medical equipment, and oil and gas equipment to Iran.
Former HealthSouth chief executive Richard M. Scrushy was a master salesman who persuaded subordinate William T. Owens to continue with a $2.7 billion accounting fraud even though Owens knew it was wrong, the former financial chief testified at Scrushy's criminal trial. The defense contends that Scrushy was misled by Owens and more than a dozen other executives who have pleaded guilty to taking part in the scheme.
The Office of Comptroller of the Currency listed mortgage lending practices it considers predatory and said it would penalize national banks that engage in them. For example, the OCC said lenders must not encourage customers to default on a loan before refinancing a new loan.
Sears, Roebuck is leaving the New York Stock Exchange for the Nasdaq Stock Market. The merger of Sears and Kmart Holding will result in a company to be known as Sears Holdings.
Computer Associates International hired Dell executive Robert W. Davis as chief financial officer to help restore investor confidence after a $2.25 billion accounting fraud. The company paid a $225 million fine in September to settle a two-year Justice Department investigation.
Adelphia Communications sued founder John J. Rigas and his family, claiming they failed to turn over $14 million worth of property, including a Manhattan apartment, as part of an agreement to repay debt in 1994. The company is already suing the family for misusing $3.2 billion in company money before it filed for bankruptcy protection in 2002.
Tower Automotive, the world's largest maker of vehicle frames, filed for Chapter 11 bankruptcy protection after piling up debt in an expansion that increased sales almost 40 times to $3.1 billion in little more than a decade. Tower in recent months was squeezed as big customers such as Ford cut production, some automakers halted accelerated payments and prices rose for materials such as steel.
INTERNATIONAL
German unemployment rose in January to its highest since World War II. The unadjusted rate was 12.1 percent, with more than 5 million people out of work. The Federal Labor Agency said an unemployment benefit system introduced Jan. 1, which required many social welfare recipients to register as unemployed for the first time, added at least 222,000 to the figure.
European Union Trade Commissioner Peter Mandelson said he would fight for Airbus's rights during negotiations with the United States aimed at ending a decades-old dispute over subsidies to Airbus and Boeing. Mandelson and U.S. Trade Representative Robert B. Zoellick agreed last month to settle the subsidy dispute through negotiations rather than take it to a World Trade Organization panel.
LOCAL BUSINESS
Lockheed Martin chief executive Robert J. Stevens got a $2.3 million bonus last year, his first as head of the company. The bonus was on top of a $1.2 million salary, Lockheed reported in a regulatory filing.
EARNINGS
Amazon.com said fourth-quarter earnings rose to $346.7 million, from $73.1 million in the fourth quarter of 2003. The figure included a one-time $244 million tax benefit. Revenue rose 31 percent, to $2.54 billion. For the full year, earnings rose to $588.5 million, from $35 million in 2003. Revenue increased 31 percent, to $6.92 billion.
