General Growth Properties Inc., an owner of Alderwood mall, announced Thursday that it reached an agreement with its lenders to postpone payment of its $900 million in debt. The agreement extends the debt until until Feb. 12. The Chicago-based company had struggled to get an extension for the debt for its properties in Las Vegas. The nation’s second largest mall owner has stakes in more than 200 malls in 44 states. The company’s stock Thursday closed at $1.61, up 3 cents or 1.9 percent.
Caterpillar to cut more than 800
Caterpillar Inc., the world’s largest producer of construction and mining equipment, said Thursday it will lay off 814 employees at its engine assembly facility in Mossville, Ill. Caterpillar said volumes at the facility have dropped sharply in recent months due to reduced demand for on-highway truck engines, engines for Caterpillar machines and commercial engine applications. The employees, who work in production, were notified of the decision Thursday. Caterpillar said the layoffs will begin Feb. 23. Caterpillar has been cutting costs to cope with the economic downturn.
Dollar’s strength hurting Oracle
Oracle Corp.’s quarterly profit slipped for the first time in three years as a stronger dollar took a big bite out of the business software maker’s international sales. The Redwood Shores, Calif.-based company said it earned $1.3 billion, or 25 cents per share, in the three months ended in November. The net income dipped by $7 million from the same time last year while the earnings per share remained the same. Although it was negligible, the erosion marked Oracle’s first decline in profit since its fiscal quarter ending in November 2005.
Better profits for Carnival Corp.
Carnival Corp., the world’s largest cruise firm, reported a better-than-expected 4 percent increase in fourth-quarter earnings on Thursday, but lowered its 2009 outlook as consumers put off booking vacations for next year. Carnival shares gained 84 cents, or 3.6 percent, to $24.31 in afternoon trading. The stock has traded from $14.85 to $45.22 in the past 52 weeks. The Miami-based company’s quarterly earnings rose to $371 million, or 47 cents per share, beating Wall Street’s expectations and the company’s forecast. The results compared with a profit of $358 million, or 44 cents, a year earlier.
Tough financing for RV buyers
Motor home producer Winnebago Industries Inc. reported Thursday it swung to a fiscal first-quarter loss, saying customers continued to have difficulty financing RV purchases while the troubled economy kept many away from dealerships altogether. Chairman and Chief Executive Bob Olson said the company expects sales to remain weak, especially during the seasonally slow second quarter. Forest City, Iowa-based Winnebago said its lost $9.6 million, or 33 cents per share, in the quarter ended Nov. 29, compared with a profit of $10 million, or 34 cents per share, a year ago. Revenue tumbled 68 percent to $69.4 million from $215.1 million.
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