Berkshire Hathaway Inc., the holding company controlled by billionaire investor Warren Buffett, agreed today to acquire FlightSafety International Inc. for about $1.5 billion in cash or stock.
Shareholders of FlightSafety, which provides simulator training to aircraft and ship operators, may receive $50 a share in cash up to 58 percent of the purchase price, or $870 million. The remainder of the purchase will be made with $48 worth of Class A or Class B Berkshire shares.
FlightSafety International, which reported a 2 percent drop in its third-quarter profits today, had 30.6 million shares outstanding as of May 1. The New York City-based firm's earnings so far this year are up 1 percent to $61.1 million, while its sales have increased by 14 percent.
The companies said shareholders representing more than 37 percent of FlightSafety's shares have indicated that they plan to vote in favor of the transaction, which is expected to close by the end of the year.
Berkshire Hathaway is the parent company of The Buffalo News.
TRW cutting 2,300 jobs worldwide
CLEVELAND (AP) -- Automotive and aerospace component maker TRW Inc. reported higher third-quarter earnings Monday as it announced plans to cut 2,300 jobs through plant closings and consolidation.
TRW, which has more than 65,000 employees in 23 countries, said several plants would be affected. The locations were not specified.
The company said it will take an after-tax charge of $233.4 million. TRW said its earnings for the third quarter rose to $105.2 million, or $1.61 a share, from $93.6 million, or $1.39 a share, in the same period a year ago. Sales rose to $2.32 billion from $2.25 billion.
Continental reduces some fares
HOUSTON (AP) -- Continental Airlines on Monday announced reduced fares of up to 40 percent for fall and early winter travel on many U.S. routes and to Latin America and the Caribbean.
Tickets for the "Discover America" fare sale must be purchased by Oct. 24 for travel completed by Feb. 13. The tickets must be purchased at least 14 days in advance and include round-trip travel, a Saturday-night stay and other restrictions. Travel during peak holiday periods is blacked-out.
Women sue Chevron for bias
SAN FRANCISCO (AP) -- More than 750 current and former female Chevron employees are suing the oil giant, contending it unfairly hired, promoted and gave top projects to men over women.
The closely watched sex discrimination suit follows last year's $2.2 million out-of-court settlement on related sexual harassment claims. That settlement was one of the largest awards in a harassment case against a major corporation.
Kodak, Sprint, Citicorp earnings
Eastman Kodak Co. today said third-quarter earnings rose 21 percent, in line with analysts' estimates.
The world's largest photo company reported net income of $410 million, or $1.22 a share, up from $338 million, or 99 cents, a year ago. Sales increased 9 percent to $4.15 billion from $3.81 billion, helped by recent acquisitions at Kodak's Qualex Inc. photo-developing business, color photo paper sales and sales of the new Advantix film and camera.
Sprint Corp. today said third-quarter profit rose as a 10.6 percent increase in sales offset increased spending in its international and wireless ventures.
The No. 3 U.S. long-distance company posted profit from operations of $316.2 million, or 73 cents a share, compared with profit from continuing operations of $263.6 million, or 75 cents, a year ago. Per-share results reflect a 24 percent increase in the number of shares outstanding to 434.7 million from 350.5 million.
Revenue rose 11 percent to $3.54 billion from $3.21 billion a year ago. Volume, or the amount of traffic on Sprint's phone network, rose 21 percent.
Citicorp, parent of Citibank, today said its third-quarter profit from operations rose 7 percent, as a surge in corporate banking profits offset higher credit card losses. The nation's second-largest bank said net income rose 8 percent to $935 million, or $1.85 a share, from $877 million, or $1.79 a share, in the same quarter last year. Total revenue rose 8 percent to $5.36 billion from $4.9 billion in the year-ago quarter.