Businesses at the wholesale level added to their stockpiles in January and their sales jumped by the largest amount in 14 months. Wholesale inventories rose 1.1 percent in January, the Commerce Department said Wednesday. It was the 12th gain in 13 months. Sales at the wholesale level rose for the seventh straight month. The 3.4 percent increase was the largest gain since November 2009. Greater sales should encourage businesses to keep restocking their shelves and drive factory production in the months ahead. The rise in inventories in January left stockpiles at $436.9 billion. That’s 13.1 percent higher than the low reached in September 2009, when companies were slashing their stockpiles to keep costs under control during the recession. The restocking of warehouses has helped to boost production and job growth at U.S. factories. Economists believe that trend will continue in 2011.
Buffet hikes offer for Wesco Financial
The price Warren Buffett’s Berkshire Hathaway is willing to pay for the remaining 19.9 percent of Wesco Financial it doesn’t already own has grown $9 million to $556.6 million. The companies said in documents filed with federal regulators Wednesday the price increased to better reflect Wesco’s value. The deal announced last month included provisions for price adjustments based on Wesco’s earnings and the value of its investments. Wesco is now valued at $392.91 per share, up from $386.55 per share. Wesco is a conglomerate that owns insurance businesses and an eclectic mix of operating companies. It is similar to Berkshire, but smaller and less diverse. The Pasadena, Calif., company has been Berkshire’s indirect subsidiary since 1983. The cash and stock deal is expected to close by the end of June.
Kohl’s to open stores; two in Washington
Kohl’s Department Stores Inc. is opening nine stores in seven states, a move it says will create more than 1,200 jobs. The mid-price department store chain said Wednesday it’s opening stores in Illinois, New York, South Dakota, Texas, Virginia, Washington and Wisconsin. The Washington stores will be in Puyallup and in Union Gap near Yakima. The company plans to open about 30 more stores this year. With Wednesday’s openings, Kohl’s will have about 1,100 stores in 49 states.
Despite jet delays, EADS returns profit
European aerospace giant EADS NV revealed Wednesday that lower charges for delayed programs such as its A400M military transport plane helped it return to profit in the fourth quarter. However, the parent company of Boeing rival Airbus forecast flat earnings in 2011. EADS reported it made $493 million in the last three months of 2010, compared with a loss of about triple that amount in the same period a year earlier when spiraling costs on its new military transport, the A400M, and its A380 superjumbo jet took a heavy toll on earnings.
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