BUSINESS BRIEFS
Hershey raises prices, lowers earnings outlook
Advertiser news services
HERSHEY, Pa. — Hershey Co. said yesterday it plans to raise prices on its products by an average of 11 percent as it tries to stem the impact of soaring commodities costs, and trimmed its projections for 2008 and 2009.
The candy company known for its chocolate bars and bite-sized Kisses said the immediate increase was necessary to offset "significant increases" in the cost of raw materials such as sugar, cocoa and peanuts — up as much as 45 percent since the start of the year — as well as the growing cost of fuel, utilities and transportation.
MERRILL LYNCH FACING LAWSUIT
NEW YORK — New York Attorney General Andrew Cuomo said yesterday he sent a letter to Merrill Lynch & Co. notifying the investment bank that his office will file suit against it as part of an investigation into the collapse of the auction-rate securities market.
The letter sent to Merrill, which was given to reporters by Cuomo's office, is similar to one Citigroup Inc. received before settling with the attorney general.
Earlier yesterday, Wachovia Corp. became the fifth bank to settle as part of the investigation; Wachovia agreed to buy back $8.5 billion of the securities at face value from investors. The Charlotte, N.C.-based bank will also pay $50 million in fines to be distributed among states. The fines will be distributed to states based on the amount of securities sold to investors in each state.
INDUSTRIAL OUTPUT UP 0.2% IN JULY
WASHINGTON — Industrial output rose in July at a slightly better pace than expected as a further rebound in the auto industry offset a big plunge in output at the nation's utilities.
The Federal Reserve reported yesterday that industrial production edged up 0.2 percent last month. That was half the pace of the 0.4 percent gain in June, but it did surpass analysts' expectations for flat production in July.
The increase reflected a 0.4 percent gain in output at manufacturing plants. Motor vehicles and parts showed the biggest increase in manufacturing, advancing for a third straight month.
TROUBLED GOLD SINKS BELOW $800
NEW YORK — Prices for gold — which touched $1,000 an ounce for the first time in March — have plunged in recent weeks, and yesterday tumbled below $800 for the first time since late last year.
It has been a sharp reversal for a bellwether of the commodities boom that only months ago seemed poised to soar to uncharted heights.
The dramatic sell-off — gold has slashed more than $100 off its prices since Aug. 1 — comes amid a host of bearish factors that have dented the metal's safe-haven appeal: The once-limping dollar is strengthening against its rivals, crude oil is easing from record levels and signs suggest the worst may be over for the flagging U.S. economy.
FORD SELLING STOCK TO PAY OFF DEBT
NEW YORK — Ford Motor Co. said yesterday it will sell $500 million in common stock to pay off debt at its financing arm, according to a regulatory filing.
The Dearborn, Mich.-based automaker said in a filing with the Securities and Exchange Commission that it will sell the shares from time to time, then use the proceeds to buy Ford Motor Credit LLC outstanding debt securities in the open market or privately negotiated deals.
Ford Motor Credit has struggled in recent months, taking a $2.1 billion charge during the second quarter related to the drop in used vehicle prices.
UAL EXECUTIVE RETIRING NOV. 1
CHICAGO — United Airlines parent UAL Corp. said yesterday that Jake Brace, the company's high-profile chief financial officer and executive vice president, intends to retire effective Nov. 1.
The Chicago airline holding company said Brace will be succeeded by Kathryn Mikells, who has served in a number of financial-related posts but most recently has been serving as vice president of investor relations.
