Friday, May 27, 2005

Nation/World Briefs

Detroit News staff, wire and Bloomberg News reports

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Retail

Sears renews NASCAR's Craftsman deal

Sears Holdings Corp. renewed its sponsorship with NASCAR's Craftsman Truck Series, keeping the retailer's tool brand as the only name the 10-year-old racing circuit has had. The contract will extend the sponsorship another five years through 2010, the company and NASCAR said. The agreement also continues Craftsman's status as the official tools of NASCAR. The Craftsman series, where drivers race Chevrolet, Dodge, Ford and Toyota pickup trucks in 25 events, is NASCAR's third- tier circuit after the Nextel Cup and Busch Series. Sears was acquired in March by Kmart Holding Corp. for $12.3 billion, creating the third-largest U.S. retailer.

Improved sales boost Costco profits

ISSAQUAH, Wash. -- Wholesale club operator Costco Wholesale Corp. said Thursday that its profit rose 6 percent in the third quarter, helped by improved sales and a moderate gain in business at locations open at least one year. Quarterly income grew to $209.8 million, or 43 cents per share, in the three months ended May 8 from $198.7 million, or 42 cents, the previous year. On average, analysts surveyed by Thomson Financial were looking for earnings of 42 cents per share in the latest quarter. Revenue including net sales and membership fees totaled $12 billion, up from $10.9 billion a year earlier. At stores open at least a year, sales increased 7 percent, Costco said.

 

Autos

Nissan to build gas-electric Altima sedans

Nissan Motor Co. said it will build gasoline-electric Altima sedans at a U.S. plant starting in late 2006, becoming the second Japanese carmaker to produce hybrid vehicles in the world's largest auto market. The company plans to build the hybrid version of the Altima at either Smyrna, Tenn., or Canton, Miss., the two factories that make the gasoline-only version of the sedan, spokesman Kyle Bazemore said Thursday. The hybrid will be a 2007 model, he said. Nissan's plans follow Toyota Motor Corp.'s announcement May 17 that it would build hybrid Camry sedans in Kentucky.

 

Finance

Schwab trims fees for stock-option trades

Charles Schwab & Co., the world's biggest discount broker, said it's cutting fees for stock-option trades, the latest salvo in an industrywide battle to lure clients who trade more frequently. Starting today, Schwab will charge top-tier customers $9.95 for an option trade plus 75 cents per contract, down from 95 cents. The San Francisco-based company also will cut fees for clients who trade less often or have fewer assets. Schwab also said its trading software, StreetSmart Pro, now offers more options-related functions.

 

Real estate

Toll Brothers earnings increase sharply

HORSHAM, Pa. -- Toll Brothers Inc., a leading builder of luxury homes in the United States, said Thursday its second-quarter earnings rose sharply and raised its forecast for the year. Income more than doubled to $170.1 million, or $2.01 per share, from $72.4 million, or 89 cents per share, a year ago. The year-ago quarter included a charge of 6 cents per share related to early retirement of debt. Revenue increased 52 percent to $1.25 billion from $819.5 million. Analysts surveyed by Thomson Financial were expecting a profit of $1.79 per share on revenue of $1.26 billion.

 

 

Honda to keep output levels high in U.S.

TOKYO -- The head of Japan's Honda Motor Co. said Thursday his company aims to keep production levels high in the United States and purchase more parts in the United States to help support the U.S. economy and its floundering auto industry. Honda President and Chief Executive Takeo Fukui said such measures were preferable to raising prices on Japanese cars. Honda currently produces about 80 percent of its vehicles for the American market in the United States and buys as much as 98 percent of auto parts needed for its U.S.-market cars from local suppliers, Fukui said.

Geely plans to make cars in Malaysia

SHANGHAI, China -- The Geely Group, China's biggest private automaker, said Thursday it plans to begin making cars in Malaysia, its first venture in overseas production. A contract between Geely and its Malaysian partner, Alado Corp. is due to be signed later this month, a Geely representative said. The former motorcycle maker, which now makes Merrie and Haoqing compact cars, hopes the deal will help it tap foreign markets. Until recently, China's vehicle exports were limited mainly to buses, trucks and farm vehicles sold to developing countries.

Mazda to offer SUV in North America

Mazda Motor Corp., a third owned by Ford Motor Co., said it would release a new sport-utility vehicle next year in North America as part of its plan to boost sales by 13 percent in the next two years. The Mazda CX-7 will be a so-called crossover vehicle that blends in the features of a sports car with an SUV, the carmaker, based in southwestern Japan's Hiroshima prefecture, said Thursday. It will compete with Nissan Motor Co.'s Murano and Toyota Motor Corp.'s Lexus RX models.

 

 

Toys

Report questions safety of Chinese toys

SHANGHAI, China -- About one in seven toys made in China fail to meet government standards, a report said Thursday, citing calls for better safeguards to protect children -- and the country's reputation as the world's No. 1 toy maker. Toys made of wood and plastic had the worst safety record in a survey by the General Administration of Quality Supervision, Inspection and Quarantine earlier this year, the state-run newspaper China Daily reported. China makes about three-quarters of the world's toys, and its dominant role in the industry has raised worries over lax enforcement of safety standards both for the products it makes and the people who make them.

 

Video games

Nintendo profit doubles for fiscal year

TOKYO -- Japanese video game maker Nintendo Co.'s net profit more than doubled for the latest fiscal year, lifted by strong sales of its newly launched portable game player Nintendo DS and gains from foreign exchange fluctuations, the company said Thursday. The Kyoto-based company, which makes the Super Mario game software and GameBoy Advance portable machines, said its group net profit surged to 87.42 billion yen ($809.44 million) in the year ended March 31 from 33.19 billion yen a year earlier.