Published: Wednesday, October 28, 2009
Ford joins Asian brands in reliability
Asian automakers are still building the most reliable cars and trucks, with eight of the top 10 brands from Japanese and Korean companies, according to an annual survey by Consumer Reports. But several models from Ford Motor Co. are now consistently scoring above Honda and Toyota, the perennial leaders. While Toyota’s youth-oriented Scion brand finished first for the second year in a row, several Ford models, including the midsize Ford Fusion and its cousin, the Mercury Milan, consistently have been at or near the top of their classes, a trend that led Consumer Reports editors to declare that Ford is now making some vehicles with world-class reliability. After Scion, Honda, Toyota, Infiniti and Acura rounded out the top five brands in reliability based on surveys taken in March of subscribers who own or lease 1.4 million vehicles.
IBM adds $5 billion for stock buybacks
IBM Corp. has boosted its stock buyback program by $5 billion, a sign of the company’s ability to spit out cash despite the fact the recession has choked off revenue growth. The announcement Tuesday brings IBM’s pot for stock repurchases to $9.2 billion, and the company, based in Armonk, N.Y., plans to ask for more at a board meeting in April 2010. IBM said it has spent $73 billion on dividends and buybacks since 2003. Buybacks are one lever companies pull to meet earnings targets, since they increase earnings per share by reducing the number of shares outstanding. IBM has set aggressive earnings targets, and twice this year raised its profit forecast for 2009, surprising investors since revenue has fallen since last year.
Poor job prospects worry consumers
Consumers’ confidence about the U.S. economy fell unexpectedly in October as job prospects remained bleak, a private research group said Tuesday, fueling speculation that an already gloomy holiday shopping forecast could worsen. The Consumer Confidence Index, released by The Conference Board, sank unexpectedly to 47.7 in October — its second-lowest reading since May. Forecasters predicted a higher reading of 53.1. A reading above 90 means the economy is on solid footing. Above 100 signals strong growth. The index has seesawed since reaching a historic low of 25.3 in February and climbed to 53.4 in September.
Frontier investors OK local phone buy
Shareholders of Frontier Communications in Connecticut have approved the company’s plan to buy Verizon’s landline phone business in 14 states including in Snohomish County. The local exchange business would also include services for long distance, broadband Internet and broadband video. No voting results were listed, but the company called it a “resounding vote of support.” Officials said the sale, which still must be approved by regulators, is on track to close in the spring of next year.
From Herald news services
IBM adds $5 billion for stock buybacks
IBM Corp. has boosted its stock buyback program by $5 billion, a sign of the company’s ability to spit out cash despite the fact the recession has choked off revenue growth. The announcement Tuesday brings IBM’s pot for stock repurchases to $9.2 billion, and the company, based in Armonk, N.Y., plans to ask for more at a board meeting in April 2010. IBM said it has spent $73 billion on dividends and buybacks since 2003. Buybacks are one lever companies pull to meet earnings targets, since they increase earnings per share by reducing the number of shares outstanding. IBM has set aggressive earnings targets, and twice this year raised its profit forecast for 2009, surprising investors since revenue has fallen since last year.
Poor job prospects worry consumers
Consumers’ confidence about the U.S. economy fell unexpectedly in October as job prospects remained bleak, a private research group said Tuesday, fueling speculation that an already gloomy holiday shopping forecast could worsen. The Consumer Confidence Index, released by The Conference Board, sank unexpectedly to 47.7 in October — its second-lowest reading since May. Forecasters predicted a higher reading of 53.1. A reading above 90 means the economy is on solid footing. Above 100 signals strong growth. The index has seesawed since reaching a historic low of 25.3 in February and climbed to 53.4 in September.
Frontier investors OK local phone buy
Shareholders of Frontier Communications in Connecticut have approved the company’s plan to buy Verizon’s landline phone business in 14 states including in Snohomish County. The local exchange business would also include services for long distance, broadband Internet and broadband video. No voting results were listed, but the company called it a “resounding vote of support.” Officials said the sale, which still must be approved by regulators, is on track to close in the spring of next year.
From Herald news services
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