Coca-Cola announced this week that they have a $5.3 billion nin-cash write down that shows a decline for the value of its North American business. The charge is due to the declines in operating income and the decline in stock prices ”both largely the result of deteriorating North American macroeconomic conditions and expected substantial increases in commodity costs.”
Officials accused two drug stores chains of selling outdated milk, baby formula, and pills. Hours after this accusation was made several expired medications were seen on the shelves of the drugstores. The acetaminophen pain relievers were supposed to have been pulled down last year – but were still being sold in New York at the lower East Side CVS store. Other expired drugs were found in a Rite Aid.
Manpower Inc. has stated that number of new employees will be much lower than last year during the third quarter. Close to half the countries in the company (based out of Milwaukee) will be reducing the amount that they hire. The other half have made plans to continue hiring new employees during the July – September quarter.
General Motors – the world’s largest automaker – released a statement today that they would be ceasing all production from the Oshawa, Ontario pick-up truck factory. This will cut close to 1,000 jobs.
There is belief that they will be announcing the end of two U.S. plants in Ohio and Wisconsin at the annual shareholder meeting. They are making the cuts due to the increase in gas prices and the housing slump.
In May an important and key measure of consumer confidence reached an all time low as it dropped the most it has ever done in 16 years. The reason for this is that many Americans are worried about the future of their jobs and the business conditions.
The New York-based Conference Board said Tuesday that its Consumer Confidence Index dropped to 57.2, the lowest level since October 1992, from a revised 62.8 in April. Economists had expected the index to decline to 61, according to a consensus compiled by Briefing.com.
This week an analyst stated that Bed Bath & Beyond is going to lose consumers throughout the coming months. The home furnishings retailer was hoping that when Linens ‘n Things closed some of the store as part of a bankruptcy plan business would pick up. However, that doesn’t seem to be the case.
PiperJaffray analyst Neely J.N. Tamminga said in a research note that consumers are more likely to turn to lower-priced home furnishings, and discounters are more likely to benefit from the Linens ‘n Things 120 store closures.
American Airlines is cutting the U.S. capacity as close to as 12% and will be getting rid of 85 jets that will cause job cuts. They are hoping that this will help to counteract the fuel prices and slow demand.
AMR fell the most since September in New York trading. The reduction in domestic seating is more than twice what American had announced in April, and is the third cut in 2008. AMR also will add a $15 fee for the first checked bag.
After last years massive recalls Mattel has been struggling with a drop in sales of their Fisher-Price toys and higher costs. They were discouraged Monday to see that they lost $46.6 million in their first quarter at Wall Street. Hasbro on the other hand saw a 14% increase in profits.
Northwest Airlines is trying their best to get begin the merger talks between Delta Air Lines up and running. Their only concern is the fact that the carriers’ pilots have still not agreed on how they are going to merge all of the important seniority lists.
The economy in New York City and its financial services industry has taken a turn for the worse after Wall Street’s fifth largest firm – Bear Stearns – broke down this week. Last Fall many of the investment banks and brokerage firms began to cut their payrolls after the market for mortgages began to take heavy losses.