Boeing Co. said today it will report a loss for the third quarter and that earnings will be hurt into next year because of problems keeping up with its booming orders for commercial jets.
Late deliveries and a plan to deal with shortages of parts and skilled labor will cost about $1.6 billion before taxes in the third quarter ended Sept. 30, Boeing disclosed this morning. It said disruptions will add about $1 billion to that bill through next year.
Boeing's stock dropped $3.25 per share to $50.75 today on the New York Stock Exchange.
Results for the third quarter are to be released Friday.
Boeing is in the midst of boosting its production from 18 planes a month to 43. It has had to halt production of some of its most popular jets just to catch up with work in progress.
Berkshire buying Dairy Queen
MINNEAPOLIS (AP) -- Warren Buffett's Berkshire Hathaway Inc., which owns The Buffalo News, announced Tuesday it is buying International Dairy Queen Inc. for $585 million worth of Berkshire stock.
Minneapolis-based Dairy Queen would become a wholly owned subsidiary of Berkshire Hathaway. John Mooty, Dairy Queen's 74-year-old chairman, said his family's 35 percent stake will vote in favor of the deal, which is expected to close late this year or early next year.
Holders of Dairy Queen common stock can receive either $27 in cash or $26 in Berkshire Hathaway common stock, but Berkshire won't pay more than 55 percent of the price in cash.
"Dairy Queen is a business that I like, run by an outstanding management team. Dairy Queen will be a great addition to the Berkshire family," Buffett said.
The company develops, licenses and services more than 5,790 Dairy Queen stores and about 410 Orange Julius stores worldwided, along with 45 Karmelkorn shoppes.
Praxair not cutting employment here
Employees of Praxair Inc.'s research center in the Town of Tonawanda will not be affected by the company's plans to fire about 800 workers worldwide.
The Danbury, Conn.-based maker of industrial gases Tuesday said it will cut about 10 percent of the workers in its North American packaged gas business, which employs about 4,200 people.
Another 400 jobs will be eliminated from its Brazilian operations, which employ 8,000.
Praxair employs 1,300 at its Praxair Technology Center in Tonawanda. Site manager Dennis Conroy said the complex isn't related to the packaged gas business, which fills cylinders of gas for industry.
AMF Bowling hires Michael Jordan
CHICAGO (AP) -- You've seen him on the basketball court, in the baseball field and on the golf course. And he's done more than a few commercials.
But Michael Jordan at the bowling alley?
Richmond, Va.-based AMF Bowling Worldwide has hired the Chicago Bulls superstar to endorse its company in a five-year deal announced Tuesday. Terms were not disclosed.
Ohio firm buys Knott's Berry Farm
LOS ANGELES (AP) -- An Ohio-based company has reached an agreement to buy Knott's Berry Farm, the family-run theme park that evolved from a fried chicken restaurant into a $120-million-per-year attraction.
Knott's will be acquired for an undisclosed amount of stock and cash by Cedar Fair L.P. of Sandusky, Ohio, the operator of Cedar Point and three other amusement parks, the companies said Tuesday.
In other business news
Bausch & Lomb Inc. today said it is paying $380 million to acquire Storz Instrument Co., a subsidiary of American Home Products Corp. that makes ophthalmic instruments and drugs. The purchase, along with an announcement Tuesday to buy Chiron Corp.'s ophthalmic products unit for $300 million, would push Bausch & Lomb's annual eye-care sales above $2 billion.
Hilton Hotels Corp. chief executive Stephen Bollenbach said Tuesday the company will not raise its hostile bid for ITT Corp. in what was seen as a concession to ITT's $9.8 billion agreement with Starwood Lodging Trust.