Schultz returns to CEO chair for Starbucks
Published 10:41 pm Monday, January 7, 2008
Starbucks Corp. said Monday it is returning its chairman, Howard Schultz, to the chief executive’s job to lead a major restructuring initiative, replacing CEO Jim Donald. The move, coupled with plans to open new U.S. stores at a slower pace, comes as the world’s largest chain of coffee houses has seen its stock plummet 50 percent over the last year amid declining traffic in its domestic stores. Starbucks’ announcement sent the company’s shares up $1.67, or 9 percent, in after-hours trading. Starbucks said the leadership shuffle is part of a series of other initiatives that includes closing U.S. stores that aren’t performing well, introducing new products and store designs, and improving training.
Cancer drug hits milestone
Bothell’s Seattle Genetics has will receive $4 million from partner Genentech for hitting a testing milestone with its cancer drug candidate SGN-40. The payment was triggered by the beginning of a clinical trial with the drug in combination with Rituxan for treatment of patients with a form of non-Hodgkin lymphoma. Dr. Thomas Reynolds, Seattle Genetics chief medical officer, said the test will help evaluate the safety and potential of SGN-40.
Analysts’ forecast hurts EADS stock
Shares in European Aeronautic Defence &Space Co. NV dropped more than 7 percent Monday after Deutsche Bank predicted weaker commercial jet orders in 2008. Boeing’s stock dropped 3.4 percent to $82.87. “We have growing concerns over weaker commercial aerospace cycle fundamentals for 2008,” said analysts Benjamin Fidler and Sebastien Gruter. “This will likely result in weaker order momentum for Airbus,” Deutsche Bank said in downgrading its rating for Airbus’ parent company to “sell” from “hold.”
Federal agents mount port probe
The Justice Department has launched a criminal investigation of the Port of Seattle, following a state audit that found its construction projects wasted $97.2 million in taxpayer money. U.S. Attorney Jeffrey Sullivan in Seattle and his criminal division chief, Robert Westinghouse, announced the probe in a letter Friday to state Auditor Brian Sonntag, whose office conducted the review. The letter asked Sonntag not to publicly name anyone who provided information.
PlayStation sales total 1.2 million
Sales of Sony’s PlayStation 3 game machine sales totaled 1.2 million in North America during the key holiday season, the electronics and entertainment company said Monday. The performance gave a lift to its Blu-ray video format because the console also works as a Blu-ray player. Competition is intense among the latest video game machines, pitting Sony Corp. against Nintendo Co.’s popular Wii and Microsoft Corp.’s XBox 360. Despite the strong holiday sales for the PS3, more Wiis have sold than PS3s since the consoles debuted in late 2006. But the rivalry between the two of the latest video formats — Blu-ray and HD DVD — appears to be tipping toward Sony after Warner Bros. Entertainment defected to the Blu-ray side over the weekend.
From Herald staff and news services
