BUSINESS BRIEFS
Mattel pressured to end use of lead in toy production
Associated Press
LOS ANGELES — Dozens of federal lawmakers are demanding that Mattel Inc., the world's largest toymaker, stop selling toys that contain any amount of lead, claiming the toymaker is not going far enough to address safety concerns.
The demand was contained in a letter released yesterday by U.S. Representative Elijah Cummings, a Maryland Democrat. It was signed by more than 50 fellow lawmakers and sent to Mattel on Tuesday.
The letter was the latest sent to Mattel in recent weeks by Cummings asking Chairman and Chief Executive Robert A. Eckert to completely eliminate the use of lead in toys manufactured by the El Segundo, Calif.-based company.
The lawmakers' scrutiny follows the recall of millions of Chinese-made toys last year by the company because of concerns that lead paint exceeded U.S. standards.
STRONG SALES LIFT BOEING EARNINGS
CHICAGO — Boeing Co. posted better-than-expected fourth-quarter earnings yesterday on the strength of still-booming commercial airplane sales and improved productivity, easing investor concerns for now about the possibility of another setback for its thrice-delayed 787 Dreamliner.
The No. 2 commercial jet maker maintained the status quo on the much-awaited 787, affirming the revised schedule it announced Jan. 16 which calls for the plane's first flight in June and first customer delivery in early 2009 but providing no more specifics.
AMAZON SAVORS AMAZING QUARTER
SEATTLE — www.Amazon.com Inc. said yesterday its fourth-quarter profit more than doubled, helped by fast-growing international sales.
The Web retailer also issued better-than-expected guidance and appeared unconcerned about a possible recession.
Amazon's earnings in the crucial holiday quarter climbed to $207 million, or 48 cents per share, from $98 million, or 23 cents per share, in the same period last year.
S&P CONSIDERS HUGE DOWNGRADE
NEW YORK — Standard & Poor's Ratings Services is considering slashing its rating on more than $500 billion of investments tied to bad mortgage loans, the ratings agency said yesterday.
The massive downgrade would threaten a broad swath of the world's finance industry, S&P said, ranging from Wall Street's trading desks to regional banks to local credit unions.
Ratings from agencies like S&P play a vital role in how much investments are worth. Many funds can only buy investments carrying strong ratings, and some people blame the agencies for granting top-notch credit scores to risky investments during the housing boom.
VIOXX CHARGE PAINS MERCK
TRENTON, N.J. — Merck & Co. posted a $1.63 billion fourth-quarter loss yesterday as a whopping charge for its Vioxx litigation settlement dragged down results.
The maker of allergy and asthma pill Singulair and osteoporosis treatment Fosamax said the net loss amounted to 75 cents per share, compared with a year-ago profit of 22 cents, or $473.9 million.
FEWER STORES IN STARBUCKS' FUTURE
SEATTLE — Starbucks Corp. said yesterday its fiscal first-quarter profit rose by less than 2 percent, and it detailed plans to open fewer domestic stores and more overseas to revitalize the coffeehouse chain.
During fiscal 2008, the company plans to open about 425 fewer domestic stores and 75 more overseas than previously planned, for a global total of 2,150 new stores. The company also plans to close about 100 poorly performing stores in the United States and quit serving warm breakfast sandwiches by the end of fiscal 2008.
