The allure of the value meal has long seduced penny-pinchers craving a cheeseburger. Now, as the dismal economy slurps up profits, Starbucks Corp. is hoping to find some sales salvation in its own value meal. The tug of war for coffee drinkers has gotten hotter in recent months, with McDonald’s Corp. offering new, lower-priced specialty coffee drinks and Dunkin’ Donuts advertising value-minded deals. Few details are available, but the company is promising that it will soon be offering new breakfast pairings at attractive prices to better compete with McDonald’s and other companies.
MetLife profits drop as payouts increase
Life insurer MetLife Inc. said Tuesday that its fourth-quarter profit slipped 12 percent as it paid out more in claims and benefits, but results topped Wall Street’s estimates. For the final three months of the year, the New York-based company said net income available to common shareholders fell to $954 million, or $1.20 per share, from $1.08 billion, or $1.44 per share, a year earlier. Total revenue rose 13 percent to $13.96 billion from $12.31 billion as premiums rose 10 percent. But the amount the company paid out in claims and benefits also rose, to $7.01 billion from $6.07 billion.
Avon’s strong profit fails expectations
Cosmetics maker Avon Products Inc. said Tuesday that its fourth-quarter profit rose 80 percent from a year earlier, when it absorbed hefty restructuring charges, but the results missed analyst expectations as the stronger dollar and consumer spending slump crimped revenue. Avon’s net income rose to $232.4 million, or 54 cents per share, from $128.9 million, or 30 cents per share. Analysts surveyed by Thomson Reuters had forecast earnings of 59 cents per share.
Merck profits rise despite lower sales
Drugmaker Merck &Co. said Tuesday it swung to a sizable fourth-quarter profit, after a year-ago loss because of a whopping charge, and — despite lower sales of key products — beat Wall Street expectations. The maker of vaccines, cholesterol drugs and asthma treatment Singulair reported a profit of $1.64 billion, or 78 cents per share. A year ago, Whitehouse Station, N.J.-based Merck posted a loss of $1.63 billion, or 75 cents per share, mainly due to a $4.85 billion charge for a settlement to end most of the patient lawsuits over its withdrawn painkiller Vioxx. Excluding charges of $204 million, or 9 cents per share, for restructuring, the world’s No. 8 drugmaker by revenue reported earnings per share of 87 cents. Fourth-quarter revenue declined 3 percent, to $6 billion.
UPS cuts expenses to handle economy
The battered U.S. economy took a bite out of UPS’s bottom line as consumers spent less and sent fewer packages in the last three months of 2008. The company Tuesday posted fourth-quarter sales and volume declines and said it will freeze management salaries and suspend 401(k) matches for employees to help UPS weather a difficult 2009. UPS has said previously it would make network modifications, lower capital expenditures and reduce staffing levels. The world’s largest shipping carrier also will slow the pace at which it buys back UPS stock.
From Herald news services
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
