New Emerson board member • For much of the 2000s, Josh Bolten helped steer the country. Now he will help steer Emerson. The Ferguson-based manufacturer said Wednesday that Bolten, who held several top posts in the George W. Bush administration, has joined its board of directors. He was White House chief of staff from 2006 until 2009, director of the Office of Management and Budget from 2003 through 2006, and a deputy chief of staff from 2001 through 2003. Since leaving the White House, he has worked as a visiting professor at Princeton University, served as CEO of the ONE Campaign, which combats global poverty and disease, and now runs a firm that advises multinational companies on economic and regulatory policy. Bolten will be the 14th member of Emerson's board, and 11th independent director. Two directors retired last year. Emerson's board members collected between $205,964 and $269,833 in cash and stock compensation last year. (Tim Logan)
Caterpillar rules out Illinois in plant relocation • Caterpillar Inc. has ruled Illinois out of plans to relocate a factory and 1,400 jobs from Japan, citing both logistical problems with building the plant in its home state and ongoing concerns about the business climate. Caterpillar laid out its decision Tuesday in an email to elected leaders in Peoria County, saying it considered factors such as access to ports and local labor markets, as well as proximity to Caterpillar's building and construction products division headquarters in Cary, N.C. But the email, signed only by the Peoria-based company's North American Facility Site Selection Team, says Caterpillar's longstanding complaints about Illinois' state budget deficit were a factor. "Please understand that even if your community had the right logistics for this project, Caterpillar's previously documented concerns about the business climate and overall fiscal health of the state of Illinois still would have made it unpractical for us to select your community for this project," the email, a copy of which was obtained by The Associated Press, says.
Chicken McBites help boost McDonald's • McDonald's Corp. said Wednesday that a key revenue figure climbed 6.7 percent in January, beating analyst estimates, as U.S. customers spent more on breakfast items, beverages and its new Chicken McBites. The world's biggest hamburger chain's strongest January results were in the U.S., as revenue in restaurants open at least 13 months rose 7.8 percent there. The metric increased 7.3 percent in the region made up of Asia, the Middle East and Africa, and 4 percent in Europe. The U.S. accounts for about 31 percent of McDonald's total revenue. Europe, which accounts for 40 percent of revenue, is McDonald's largest market.
Positive housing market forecast • The U.S. housing market will begin to mount a turnaround this year, building toward a solid recovery in 2013, according to a forecast issued Wednesday by the chief economist of a homebuilding industry trade group. The outlook by National Association of Home Builders Chief Economist David Crowe calls for U.S. sales of new homes and single-family home construction to improve this year compared with 2011, when they hit record lows. The forecast still leaves new home sales and construction well below the levels of a healthy housing market, however. "I'm looking at 2012 as sort of a ramping event to get a much more solid recovery in 2013," Crowe said.
Turmoil at Diamond Foods • Diamond Foods Inc. said Wednesday that it is replacing its CEO and chief financial officer after an internal investigation found that the company improperly accounted for payments to walnut growers and it needs to restate two years of financial results. The news sent shares of the San Francisco-based company plummeting more than 43 percent in after-hours trading. Diamond Foods, which makes Emerald Nuts and Pop Secret popcorn, has been embroiled in a dispute over the payments for several months. The company said its audit committee found that the payments were booked in the wrong period.
787 problem no setback, Boeing says • The CEO of Boeing said the latest problem with its new 787 will not slow production. Boeing is fixing a problem with the way the skin on the 787 is attached to the tail section. It is still inspecting 787s to see how many will need to be fixed. The 787 first entered service last year, and Boeing is speeding up production at the two plants where the planes are assembled, in Everett, Wash., and North Charleston, S.C. Chairman and CEO Jim McNerney said Boeing is still on track to build 3.5 planes per month by the middle of this year and 10 per month by late next year.
Earnings
Cisco said its net income jumped 44 percent in its second quarter. The world's largest maker of computer networking equipment earned $2.2 billion, or 40 cents per share, compared with $1.5 billion, or 27 cents, a year ago. Revenue rose 11 percent to $11.5 billion.
Drugstore chain Walgreen's loss of a big client is turning into rival CVS Caremark's gain so far this year. A contract squabble between Walgreen Co. and pharmacy benefits manager Express Scripts Inc. has driven more customers to CVS pharmacies, prompting that company to raise its 2012 earnings forecast by 3 cents per share. Walgreen stopped filling prescriptions for St. Louis-based Express Scripts at the end of 2011, when a contract between the two companies ran out and they were unable to negotiate a new one. CVS Caremark's earnings from the fourth quarter of 2011 climbed nearly 4 percent. The company earned $1.06 billion, or 81 cents per share, compared with $1.03 billion, or 75 cents, a year before. Revenue rose 15 percent to $28.32 billion.
Groupon investors were expecting a better deal than the surprise loss the company delivered. The deals site, reporting for the first time as a public company, said its fourth-quarter revenue nearly tripled, but it lost money. Groupon's net loss totaled $42.7 million, or 8 cents per share. A year earlier, as a private company, it booked a larger loss of $378.6 million, or $1.08 per share. Revenue was $506.5 million.
Reynolds American Inc.'s fourth-quarter earnings rose 16 percent though declining cigarette volume contributed to lower-than-expected revenue. The nation's second-largest tobacco company earned $304 million, or 52 cents a share, up from $262 million, or 45 cents, a year ago. Revenue rose to $2.08 billion.
Sprint dug deep into its pockets in the fourth quarter to put iPhones in the hands of its customers, and the perennially money-losing company posted its largest loss in three years. The loss was $1.3 billion, or 43 cents per share, compared with a loss of $301 million, or 10 cents, a year ago. Revenue rose 5 percent.
Time Warner Inc. got a boost from its movie studio and cable TV networks in the fourth quarter. Net income rose to $773 million, or 76 cents per share, compared with $769 million, or 68 cents, a year ago. Revenue grew to $8.2 billion.
Visa Inc. said its first-quarter profit rose 16 percent. Visa posted net income of $1.03 billion, or $1.49 per share, compared with $884 million, or $1.23, a year ago. There were 4 percent fewer outstanding shares in the recent quarter due to buybacks, which increases per-share results. Revenue rose 14 percent to $2.55 billion.
Whole Foods Market Inc. reported that shoppers flocked to its stores during its first quarter. It earned $118.3 million, or 65 cents per share, up 33 percent from $88.7 million, or 51 cents, a year ago. Revenue rose nearly 13 percent to $3.39 billion.
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