BUSINESS BRIEFS
New-home data looking worse
Associated Press
WASHINGTON — Construction of new homes plunged by a bigger-than-expected amount in September as builders slashed production yet again, putting the country on track to build the fewest homes this year in more than six decades.
A barometer of future building also dropped, falling to the weakest level in more than 25 years. Analysts blamed the renewed swoon on the financial crisis that erupted with force this fall, raising new anxieties among potential home buyers and making it harder for builders to get construction loans.
UPS RAISING RATES 5.9% IN JANUARY
NEW YORK — United Parcel Service Inc. yesterday announced a general rate increase of 5.9 percent for 2009.
UPS, the world's largest package delivery company, will raise ground shipment rates by an average of 5.9 percent, and increase rates on air express and international shipments bound from the U.S. by an average of 4.9 percent.
The rate hikes take effect Jan. 5.
DRUG SUITS WILL COST PFIZER $894M
TRENTON, N.J. — Drug giant Pfizer Inc. has reached an $894 million deal to settle the bulk of the lawsuits over its withdrawn pain reliever Bextra, following the lead of rival Merck & Co., which is spending five times as much to settle Vioxx suits.
The Pfizer agreement also would end lawsuits over its popular Celebrex, the only one of the three — all in the same class of anti-inflammatory drugs and all linked to elevated risk of heart attacks and strokes — still on the market.
Pfizer said yesterday it has agreements in principle to end up to 92 percent of personal injury lawsuits brought by people claiming Bextra and Celebrex caused heart attacks, strokes or other harm.
MERVYNS HEADS FOR LIQUIDATION
NEW YORK — Ailing department store chain Mervyns LLC, which had been operating for almost five decades, has become the latest merchant headed for extinction.
The retailer, which filed for Chapter 11 bankruptcy protection in July, said yesterday that it plans to begin liquidation sales at its remaining 149 stores. The Hayward, Calif.-based chain said liquidation sales during the holiday season were the best way to maximize value for the company's creditors after exhausting all its options, including the sale of the company.
SCHLUMBERGER SEES REVENUE RISE
HOUSTON — Schlumberger reported its revenues jumped 24 percent during the third quarter, but the world's largest oilfield services company said yesterday that the global economic crisis will likely take a toll.
With a barrel of oil going for more than $100 for most of the quarter, Schlumberger reported net income of $1.53 billion, or $1.25 per share, compared with $1.35 billion, or $1.09 per share, during the same period last year.
A violent hurricane season cut away 4 cents per share in profits for the quarter, Schlumberger said. Without the disruptions, diluted earnings-per-share would have been $1.29.
