BUSINESS BRIEFS
Budget deficit at $454.8B for fiscal 2008, double '07
Associated Press
WASHINGTON — The federal budget deficit soared to $454.8 billion in 2008 as a housing collapse and efforts to combat the economic slowdown pushed the tide of government red ink to the highest level ever.
The Bush administration said yesterday the deficit for the budget year that ended Sept. 30 was more than double the $161.5 billion recorded in 2007.
It surpassed the previous record of $413 billion set in 2004. Economists predicted a far worse number next year as the costs of the government's rescue of the financial system and the economic hard times hit the nation's balance sheet.
INTEL PROFIT RISES; FORECAST FUZZY
SAN JOSE, Calif. — Intel Corp.'s third-quarter profit rose 12 percent, edging past Wall Street's estimates, but the chip maker cautioned that the pall the financial crisis has cast over the technology sector makes it hard to predict its results for the current period.
The company reported after the market closed yesterday that its profit for the three months ended Sept. 27 was $2.01 billion, or 35 cents per share. That compares with the $1.79 billion, or 30 cents per share, from the year-ago period.
Analysts surveyed by Thomson Reuters expected 34 cents per share in profit.
PEPSI AXING JOBS TO CUT $1.2 BILLION
NEW YORK — PepsiCo Inc. is cutting jobs and closing factories to give it some "breathing room" to navigate the volatility that has permeated all corners of the global economy.
The maker of Pepsi-Cola, Doritos and Sun Chips said yesterday it plans to eliminate 3,300 jobs and shutter six plants in an effort to save $1.2 billion over three years. It plans to use the savings primarily to revive lagging U.S. soft drink sales.
The announcement came as the global snacks and drinks company reported a 9.5 percent drop in third-quarter profit, missing Wall Street expectations. PepsiCo also issued a downbeat profit outlook for the fourth quarter and full year.
APPLE CUTS PRICE OF MACBOOK $100
CUPERTINO, Calif. — Apple Inc. touched up its line of laptop computers yesterday with a minimal nod to the economic turmoil that might push consumers to be more frugal this holiday shopping season.
Apple did lower its least expensive laptop, the existing version of the entry-level MacBook, by $100 to $999.
But in the updated versions of its MacBook and MacBook Pro machines, Apple focused mainly on adding features.
HEALTHCARE'S J&J PROFIT UP BY 30%
TRENTON, N.J. — Healthcare giant Johnson & Johnson yesterday posted a 30 percent jump in third-quarter profit and beat Wall Street expectations, mainly because the year-ago results were weighed down by a $745 million restructuring charge.
Higher sales of consumer products and medical devices, boosted overseas by the weak dollar, also helped the New Brunswick, N.J.-based maker of contraceptives, baby care items, medical devices and prescription drugs. It reported net income of $3.31 billion, or $1.17 per share, up from $2.55 billion, or 88 cents per share, in the year-ago period.
Revenue climbed 6.3 percent, to $15.9 billion from $14.97 billion, but was boosted 3.1 percent by favorable currency exchange rates.
OIL BELOW $79 IN PROFIT-TAKING
NEW YORK — Oil prices fell below $79 a barrel in choppy trading yesterday as investors took profits from the previous day's rally and shifted their focus back to signs of dwindling world energy demand.
A falling U.S. stock market, a day after a record-breaking advance, also weighed on crude prices as traders continued to fixate on equities as a barometer for the overall confidence in the shaky world economy.
