Business Briefs: State Senate approves tax cut for businesses
Published 12:01 am Saturday, February 5, 2011
Washington businesses would get a break on this year’s unemployment taxes under a bill approved by the state Senate. The plan is projected to save Washington employers about $300 million by halting a planned increase in unemployment insurance rates. It also extends federal unemployment benefits for
about 70,000 jobless Washingtonians. The unemployment tax break is a priority for Gov. Chris Gregoire. She says it has to pass both chambers of the Legislature and be signed into law by Feb. 8 to have an effect on this year’s unemployment tax rates. Senators approved the bill Friday by a 46-1 vote.
Weyerhaeuser back to profitability
Weyerhaeuser Co. said Friday it returned to profit in the fourth quarter after a loss a year ago, as sales rose in its timber, wood products and cellulose fibers businesses. The results beat Wall Street’s expectations and shares climbed 81 cents, or 3.4 percent, to $24.39 in afternoon trading. Net income totaled $171 million, or 32 cents per share, in the three months ending Dec. 31 compared with a loss of $175 million, or 83 cents per share, in the year-ago period. Excluding one-time gains of $119 million, net income was 10 cents per share. Revenue rose to $1.66 billion from $1.46 billion in the previous year. On average, analysts expected adjusted earnings of 5 cents per share. For the year, the company’s net income was $1.28 billion, or $3.99 per share, compared with a loss of $545 million, or $2.58 a share, in 2009.
Jobless rate falling, but numbers vary
The unemployment rate is sinking at the fastest pace in half a century because a surprisingly large number of people in a survey of households say they’re finding work. That picture is more encouraging than the results of a separate government survey of businesses that shows weak job growth last month. But that survey doesn’t count the self-employed and likely undercounts the nation’s smallest businesses. Also, harsh weather disrupted business payrolls in January. The unemployment rate dropped sharply last month to 9 percent, based on a government survey that found that more than a half-million people found work. A separate Labor Department survey of company payrolls showed 36,000 net jobs created — barely a quarter of the number needed to keep pace with population growth.
Chrysler working out new bank deal
Chrysler hopes to reach a deal with banks by the end of March to refinance high-interest loans it got from the U.S. and Canadian governments in 2008 and 2009. CEO Sergio Marchionne said Friday that Chrysler had to borrow the money at exorbitant rates because no other credit was available and the company was running out of money during the global financial crisis. The U.S. government loaned Chrysler $12.5 billion to help it survive. The company pays $3 million a day in interest.
From Herald news services
