BUSINESS BRIEFING

Saturday, August 11, 2007

REGULATORS

FTC Subpoenas Firms on Ads

The Federal Trade Commission issued subpoenas to 44 food and beverage companies including Coca-Cola, McDonald's, PepsiCo, General Mills, Burger King Holdings and Procter & Gamble, seeking information on how they market to children. The companies have 90 days to respond to the orders, which were sent over the past week, FTC spokeswoman Jackie Dizdul said.

MEDIA

Gannett Changes Pay Rules

Gannett changed agreements with its top two executives to accelerate payment of retirement and deferred compensation if the company is sold, according to a regulatory filing.

The McLean company, which publishes USA Today, also changed the threshold at which an employee buyout constitutes a change in control that would trigger the executive payments.

Gannet said that it made the change to comply with tax codes and that the move did not indicate it was entertaining any offers.

FILINGS

Online Resources to File Late

Online Resources said that it delayed its most recent quarterly report because it was looking into the accounting of an embedded derivative in its Series A-1 preferred stock. The Chantilly Internet service company said it did not expect the matter to have a material impact on earnings. It expects to file the report for the three months ended June 30 with the Securities and Exchange Commission by Tuesday.

Beazer Homes Delays Report

Beazer Homes USA delayed filing its quarterly earnings report, citing an internal investigation into its mortgage business. The home builder is reviewing whether its former chief accounting officer may have recorded reserves and other accrued liabilities relating to costs of developing land and completing homes in excess of amounts appropriate under generally accepted accounting principles, Beazer said.

CONTRACTING

Force, GD Get MRAPs Award

Force Protection, the largest builder of blast-resistant trucks for the Marine Corps, won a $70 million award to produce more vehicles for troops in Iraq and Afghanistan. Force will deliver 125 Cougar vehicles by December, the Defense Department said. Force builds the Cougar trucks with Falls Church-based General Dynamics in a joint venture.

AIRLINES

US Airways, Union Reach Accord

US Airways reached a tentative contract with its machinists union that would give it a unified contract for thousands of fleet-service workers, the airline said. The four-year agreement with the International Association of Machinists and Aerospace Workers union would cover 7,700 employees, primarily baggage handlers and ramp personnel. The contract is subject to ratification by union members.

Delta Raises Ticket Fees

Delta Air Lines doubled the fee for buying tickets through its reservation agents to $20 and added as much as $25 to fees for other services.

The charges are part of an effort to steer customers to Delta.com, which charges no added fee, spokeswoman Betsy Talton said. The fee for voluntary ticket changes and to redeem frequent-flier awards within 20 days of departure is now $75, up from $50.

BANKRUPTCY

Fees May Increase

Companies in Chapter 11 bankruptcy protection would pay significantly more in quarterly fees to the federal government, in some cases triple what they're paying now, under a budget proposal set to take effect next year. The U.S. Trustee Program, a Justice Department office that monitors consumer and business bankruptcy cases, has proposed a 30 percent fee increase. It also wants to triple the fees for the biggest companies. The proposal has been approved by the full House and by Senate budget leaders.

Lender Files for Protection

HomeBanc, a mortgage lender, filed for bankruptcy protection two days after saying it would sell assets to Countrywide Financial. Atlanta-based HomeBanc listed assets of $5.1 billion and debt of $4.9 billion in Chapter 11 documents.

EXECUTIVES

Tanner Named Lockheed CFO

Lockheed Martin named Bruce L. Tanner to succeed Christopher E. Kubasik as chief financial officer and executive vice president. Tanner, 48, had been vice president of finance and business operations for the company's aeronautics unit. Kubasik, 46, will head the electronic systems unit, replacing Robert B. Coutts, who will retire next year.

Ann Taylor CFO Resigns

Ann Taylor Stores, a clothing retailer that has reported profit declines in the past two quarters, said its chief financial officer resigned and would leave the company by the end of September. James M. Smith, who may depart earlier should a replacement be found, quit to pursue other interests, the company said.

ECONOMY

Import Prices Gain

The Labor Department reported that the prices of imports rose by 1.5 percent, the biggest gain since March. That followed a revised 0.9 percent gain in June. Excluding petroleum, prices were up 0.2 percent, the fifth consecutive monthly rise. Compared with a year ago, prices of imports rose 2.8 percent in July after a 2 percent gain in June.

CHINA

Trade Surplus Jumps by 67%

China's trade surplus rose 67 percent in July from the same month a year earlier, to $24.4 billion, its second-highest monthly level on record. The total in June was $26.9 billion. The trade surplus with the United States was $14.4 billion.

INVESTING

Legg Mason Increases XM Stake

Legg Mason Capital Management more than doubled its stake in District-based XM Satellite Radio Holdings, Legg Mason said in a regulator filing. It now owns 33 million shares, or 10.8 percent of the total outstanding common stock.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.