A record jump in gasoline prices pushed up wholesale inflation by 3.2 percent in November at the fastest pace in 34 years, according to the Labor Department. The jump reflected a 34.8 percent surge in gasoline prices. Outside of energy and food, core inflation posted a 0.4 percent jump, double what was expected. But the Commerce Department reported that retail sales also increased by a better-than-expected 1.2 percent last month.
Frontier board declares dividend
Frontier Financial Corp.’s board of directors declared a quarterly cash dividend of 17.5 cents per share to share owners of record as of Jan. 7. Payable on Jan. 21, the dividend represents a nearly 13 percent increase over the first quarter. The Everett-based financial holding company serves as the parent company of Frontier Bank.
Boeing adds to jetliner sales team
Boeing Co. has promoted Kevin Schemm to lead the company’s North American commercial sales team. Schemm will succeed Ray Conner, who was recently chosen to replace Larry Dickenson as head of Boeing’s Seattle-based commercial airplanes division. Dickenson is retiring at the end of the year. Schemm joined Boeing in 1985 and most recently has been vice president of contracts for commercial airplanes.
Costco reports higher earnings
Warehouse retailer Costco Wholesale Corp. said its fiscal first-quarter profit rose 11 percent on increased sales and higher revenue from membership fees. Costco reported earnings of $262 million, or 59 cents per share, for the 12 weeks ended Nov. 25, compared with $236.9 million, or 51 cents per share, in the same period a year earlier. Quarterly revenue rose 12 percent to $15.81 billion.
Lufthansa buys into JetBlue airline
Germany’s biggest airline, Deutsche Lufthansa AG, is paying $300 million for a 19 percent stake in JetBlue Airways Corp., whose stock has lost about half its value since an operational meltdown last Valentine’s Day. The move could be a precursor to a takeover if U.S. laws are changed and comes as the euro has risen significantly against the dollar, making U.S. companies seem like bargains for European buyers.
Countrywide faces new investigations
The nation’s No. 1 home lender, Countrywide Financial Corp., is being investigated by California Attorney General Jerry Brown and the attorney general in Illinois. Countrywide said it had received subpoenas from both attorneys general but declined to elaborate. Countrywide also is being investigated by the Securities and Exchange Commission regarding stock sales by Chief Executive Angelo Mozilo.
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