The Treasury Department, trying to stabilize the battered auto industry, will provide up to $5 billion in financing to troubled auto parts suppliers who are linked to Detroit’s automakers, officials said Thursday. The funding would be made available from the government’s Troubled Assets Relief Program, said two congressional aides briefed on the plan. The administration will create a financial entity to provide money for auto parts that large suppliers have shipped to the Big Three automakers but have not been paid for. Auto suppliers have sought up to $25 billion to stabilize the beleaguered U.S. auto industry and have met with members of President Barack Obama’s auto industry task force, which is reviewing $17.4 billion in loans to General Motors Corp. and Chrysler LLC and requests for billions more.
Winnebago posts 2Q loss as RV sales drop
Winnebago Industries Inc. posted its third consecutive quarterly loss on Thursday as sales of RVs continued their downward slide amid locked-up credit markets that make it difficult for consumers to get financing. The recreation- vehicle maker said it lost $10.4 million, or 36 cents per share, in its fiscal second quarter, which ended Feb. 28. That’s after a profit of $2.5 million, or 9 cents per share, in the same quarter last year. Revenue plunged 81 percent to $31.8 million from $164.2 million, falling short of analysts’ estimates of $42.7 million in revenue.
Barnes &Noble 4Q profit declines
Shoppers scaling back on discretionary purchases such as books and music hurt profits at Barnes &Noble Inc., which said Thursday that its earnings fell 29 percent in the period that included the dismal holiday season — usually retailers’ busiest time of the year. But the nation’s largest bookstore chain posted adjusted results that beat Wall Street’s forecast, and gave an outlook for the current quarter that was in line with what analysts expect. The New York-based company earned $81.2 million, or $1.46 per share, in the fourth quarter ended Jan. 31, compared with $115 million, or $1.79 per share, a year earlier.
Blockbuster arranges loans, loses $360M
Blockbuster has lined up new financing to give the struggling video rental chain more breathing room as it tries to adapt to ever-fiercer competition from the Internet and cable services. The Dallas-based company announced the refinancing Thursday along with its fourth-quarter results. Blockbuster said it lost $360 million, or $1.89 per share, in the three-month period ending Jan. 4, primarily because of charges to account for the diminishing value of its 7,500-store franchise. The results contrasted with a profit of $41 million, or 18 cents per share, in the prior year.
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