OPEC, the producer of 40 percent of the world’s crude oil, agreed to cut production by 1.2 million barrels a day to stem a three-month slide in prices. The Organization of Petroleum Exporting Countries will make the cuts starting Nov. 1, United Arab Emirates Oil Minister Mohamed al-Hamli said following a meeting of member countries in Doha, Qatar. OPEC will cut production to 26.3 million barrels a day from 27.5 million for the 10 members with quotas, all except Iraq, he said. Oil prices rose in anticipation of the decision, with light sweet crude for November delivery rising 85 cents to $58.50 a barrel on the New York Mercantile Exchange.
State
Enterprise Florida will relocate
Orlando-based Enterprise Florida, the state’s economic development agency, will relocate its offices in January from the Bank of America Building to One Orlando Centre at 800 N. Magnolia Ave. The agency is renting 19,620 square feet of office space in One Orlando Centre. The lease deal was handled by Todd Davis and David Kowalchuk, both of Carter & Associates.
Nation
Judge OKs Delta benefit cuts
A federal bankruptcy judge on Thursday approved a plan by Delta Air Lines Inc. to cut $50 million a year in health benefits for about 42,000 retirees, spouses and survivors. The country’s third-largest carrier, which is operating under Chapter 11 bankruptcy protection, reached agreements with retiree representatives on Oct. 5 that affect retired pilots, ground crew workers and flight attendants. The cuts would be effective Jan. 1.
Grasso ordered to return funds
Richard Grasso, the former chairman of the New York Stock Exchange, was ordered to return at least $36.5 million to the Big Board, the biggest setback yet in his battle to keep $190 million in disputed pay. In a victory for New York Attorney General Eliot Spitzer, a state Supreme Court Justice Charles Ramos said Thursday that Grasso must surrender loans of $6.6 million and $29.9 million he took against his retirement benefits in 1995 and 1999, plus interest, and part of an additional $58 million in payments he received in 2003. Spitzer sued Grasso in 2004 to recover the funds. A lawyer for Grasso said his client will appeal Ramos’s decision.
Leading indicators post rise
A modest increase in consumer expectations helped boost the Index of Leading Economic Indicators in September, but not enough to lift the economy out of the doldrums, an industry-backed research group said Thursday. The Conference Board said its index edged up 0.1 percent to 137.7 last month. The index had slipped 0.3 percent in July and 0.2 percent in August. The index is designed to predict economic activity three to six months in the future. The small gain fit with economists’ expectations that growth will slow in the coming months.
Earnings
Broadcaster and newspaper publisher Tribune Co. said third-quarter profit rose, helped by a one-time gain to unwind partnerships. Sales fell after circulation declined and national advertising revenue slid 8 percent. Profit increased to $162.2 million, or 65 cents a share, from $24 million, or 7 cents, a year earlier. Revenue slipped 2.5 percent to $1.35 billion. Tribune’s newspapers include the Orlando Sentinel.
Coca-Cola Co., the world’s largest soft-drink maker, said third-quarter profit rose 14 percent as the company boosted soda sales in China and Europe during the World Cup soccer tournament. Net income increased to $1.46 billion, or 62 cents a share, from $1.28 billion or 54 cents a share. Sales advanced 6.9 percent to $6.45 billion.
McDonald’s Corp., the world’s largest restaurant company, said third-quarter profit rose 15 percent, spurred by higher European sales and a new $1.29 chicken-snack wrap in the United States. Net income for the July-through-September period was $843.3 million, or 68 cents a share, up from $735.4 million, or 58 cents a share, a year earlier. Revenues rose 10 percent to $5.88 billion.
United Parcel Service Inc., the world’s largest package-delivery company, said third-quarter profit rose 8.9 percent as global economic growth drove demand for shipping. Profit increased to $1.04 billion, or 96 cents a share, from $953 million, or 86 cents, a year earlier. Sales rose 11 percent to $10.6 billion as it shipped an average of 5 percent more packages daily. Also Thursday, UPS said it would shed 1,200 jobs at an unprofitable freight-forwarding unit.
Bank of America Corp. the No. 2 U.S. bank by assets, said its third-quarter earnings rose 41 percent as the acquisition of the MBNA credit card company, strong consumer product sales and cost controls helped offset tighter net interest margins. Profit rose to $5.42 billion, or $1.18 per share, from $3.84 billion, or 95 cents per share. Results for the third quarter of 2005 do not include MBNA. Revenue grew 32 percent to $18.96 billion.
Citigroup Inc., the nation’s largest bank, said its third-quarter profit fell 23 percent from a year-ago period that included hefty gains from the sale of its life insurance unit. Net income slipped to $5.51 billion, or $1.10 per share, from $7.14 billion, or $1.38 per share, a year earlier. In the third quarter of 2005, Citigroup sold Travelers Life & Annuity to MetLife Inc. and recorded a $2.12 billion gain. Excluding Travelers Life and other discontinued operations, earnings from continuing operations totaled $5.3 billion, or $1.06 per share — a 6 percent gain from a year earlier. Revenue fell slightly to $21.41 billion from $21.5 billion.
