Weyerhaeuser is suspending company matches to employee 401(k) retirement plans. In a filing Tuesday with the Securities and Exchange Commission, the Federal Way lumber company said the freeze would begin May 1. Spokesman Bruce Amundson said Wednesday there was no estimate when the contributions would resume. The suspension includes executive officers. In the fourth quarter the company reported a loss of more than $1 billion because of the poor housing market.
Stronger dollar hurts Kimberly-Clark profit
Kimberly-Clark Corp., which makes Huggies diapers, Kleenex tissues and other consumer products, said Wednesday that its first-quarter profit dropped 8 percent because of the effect of the stronger dollar. The earnings met Wall Street’s expectations. The company, which maintained its pricing, also narrowly beat analysts’ sales forecast and reaffirmed its profit forecast for the year. Consumer products companies are typically more resilient in a recession than other companies, but Kimberly-Clark has seen its market share in some areas decline as shoppers trade down to cheaper products, Chairman and Chief Executive Tom Falk said. In a conference call with analysts, Falk said the company is “not assuming any broad-based price rollbacks,” following price increases implemented last year, but it will boost spending on promotions.
EBay Inc. shares rise despite profit decline
EBay Inc. said Wednesday the weak economy contributed to declines in earnings and revenue for the second consecutive quarter, but the online marketplace operator beat analysts’ expectations. The first-quarter results helped eBay shares shoot up $1.03, or 6.9 percent, in after-hours trading, after rising 49 cents, or 3.4 percent, to finish regular trading at $14.78. They show the San Jose, Calif.-based company still struggling, though — both with the recession and its efforts to improve its online marketplace. EBay earned $357.1 million, or 28 cents per share, in the first quarter, down 22 percent from $459.7 million, or 34 cents per share, in the year-ago period. When excluding items, eBay said it earned 39 cents per share; analysts polled by Thomson Reuters expected 33 cents.
McDonald’s profits on its cheap menu items
McDonald’s Corp., which has been thriving during the economic downturn, saw its first-quarter profit climb nearly 4 percent as more customers worldwide came to the Golden Arches for a cheap meal. Sales of chicken, breakfast and beverages were particularly strong, McDonald’s said. The nation’s No. 1 hamburger chain said it is capturing a bigger bite of the market in nearly every part of the world as consumers look for a less-expensive alternative to sit-down restaurants. A new fried chicken menu and espresso drinks also continued to boost sales.
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