Airbus said Tuesday it will cut 1,000 temporary staff members and reduce working hours at its German operations, the first timid steps in a major restructuring process triggered by delays in its A380 superjumbo project. The European aircraft maker said it would not renew contracts with employment agencies currently supplying about 1,000 of its 7,300 temporary workers in Germany. It also announced a raft of measures for its regular staff in Germany, including cutting working hours to as little as 28 a week for some, though without reducing their pay.
Slow growth slices into Yahoo’s profits
Yahoo Inc.’s third-quarter profit slid 38 percent amid slowing revenue growth that has raised investor doubts about the Internet bellwether’s strategy and execution. Management also dimmed the outlook for the current quarter. The Sunnyvale, Calif.-based company said Tuesday that it had earned $158.5 million, or 11 cents per share, for the three months ended in September. That compared with net income of $253.8 million, or 17 cents per share, in the same period last year.
Wells Fargo again posts record profits
Wells Fargo &Co. registered its third consecutive quarter of record profits in the July-to-September period as strength in deposit gathering and cross-selling of products offset sluggishness in mortgage operations. The nation’s fifth-largest bank said Tuesday that it had earned $2.19 billion, or 64 cents per share, in the third quarter, an 11 percent increase from net income of $1.98 billion, or 58 cents per share, a year earlier. Revenue for the period totaled $8.93 billion, up from last year’s $8.50 billion.
Intel’s profits and revenue decline
Intel Corp. reported a 35 percent decline in third-quarter profits and a 12 percent decline in revenue Tuesday, but the chip maker beat Wall Street’s tepid expectations and shipped record numbers of microprocessors for mobile devices and computer servers. Net income for the three months ended Sept. 30 was $1.3 billion, or 22 cents a share, compared with $2 billion, or 32 cents, in the same period last year. Revenue fell to $8.74 billion from $9.96 billion. Analysts had been expecting profits of $1.01 billion, or 17 cents a share, on sales of $8.62 billion, according to a survey by Thomson Financial.
Inflation sags as gas prices fall
Wholesale inflation, helped by a record plunge in gasoline prices, dropped by the largest amount in more than three years in September. Industrial production was down sharply, too. The reports Tuesday were viewed as evidence that the slowing economy is lowering inflation pressures – just what the Federal Reserve hoped for. Wholesale prices fell by 1.3 percent, nearly double the expected decline, as the cost of gasoline sank by 22.2 percent, the biggest drop on record, the Labor Department reported.
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