BUSINESS BRIEFS
Spam sales help Hormel profit jump 14 percent
Associated Press
MINNEAPOLIS — Hormel Foods said second-quarter profits rose 14 percent, helped by falling pork prices and strong Spam sales.
Because the first half of the year shaped up stronger than it had expected, Hormel said it was sticking by its full-year guidance despite rising energy expenses.
It plans to cut turkey production by 5 percent because of energy and feed costs. Hormel has been raising prices but it's been hard to keep up with feed and fuel costs.
On a per-capita basis, Hawai'i leads all states in Spam consumption, according to the Hormel Web site. Other states with heavy Spam consumption are Alaska, Arkansas, Texas and Alabama, according to the site.
WALKOUT ENDS AT AMERICAN AXLE
HAMTRAMCK, Mich. — Workers from the largest union local at American Axle and Manufacturing Holdings Inc. have approved a new contract, ending a nearly three-month-old strike.
Election Committee Co-Chairman for Local 235 Erik Webb says the United Auto Workers local voted in favor of the deal yesterday, assuring it will pass. The vote means American Axle workers will return to work, though the date is unknown.
Local 235 has about 2,000 members, more than half the 3,650 UAW members who have been on strike since Feb. 26. Workers at two New York factories and a plant in Michigan already have approved the deal, which includes steep wage cuts and other concessions.
FORD CUTTING BACK ON PICKUPS, SUVS
DETROIT — Ford Motor Co. is cutting North American production of pickups and SUVs as car buyers eyeing record gas prices turn toward more fuel-efficient models. The automaker says it no longer expects to return to profitability by 2009 and didn't rule out layoffs and plant closures.
Dearborn-based Ford also yesterday cut back its projections for total U.S. light vehicle sales in 2008 to between 14.7 million and 15.1 million vehicles. That's down from 17 million vehicles as recently as 2005. Light vehicle sales exclude heavy trucks.
Ford said it will cut North American production by 15 percent in the second quarter, 15 to 20 percent in the third quarter and 2 to 8 percent in the fourth quarter.
JOBLESS BENEFITS APPLICATIONS DROP
WASHINGTON — The number of newly laid off workers filing for unemployment benefits unexpectedly fell last week to the lowest level in a month.
The Labor Department reported yesterday that applications for jobless benefits totaled 365,000, down by 9,000 from last week. Economists had expected claims to rise slightly.
Even with the unexpected decline, claims remain at a level that indicates the labor market is under stress from the sluggish economy.
The four-week average for claims rose slightly to 372,250, up significantly from a year ago when the four-week average was around the 300,000 mark.
GAS PRICES AT RECORD HIGH
NEW YORK — Gasoline prices again sprinted to a record high overnight, reaching a national average above $3.83 a gallon.
Some analysts predict gas will break past $4 as early as next week.
Oil prices, meanwhile, fell yesterday after setting a new trading record of $135.09 overnight.
Hawai'i's statewide average gas price hit a record $3.979 a gallon yesterday according to the AAA Daily Fuel Gauge Report.
Records were set in Honolulu ($3.883), Hilo ($3.980) and Wailuku ($4.288).
A stronger dollar gave some investors reason to sell oil futures to lock in profits from crude's record run. But concerns about falling supplies and rising demand are expected to keep propelling prices higher.
