U.S. to sell Citi warrants in bid to recoup costs
WASHINGTON (AP) -- The government says it will sell 465.1 million warrants it holds from Citigroup Inc. in an auction today. It is the latest effort to recoup costs from the $700 billion financial bailout.
Sale of the warrants gives the holder the right to buy Citigroup common stock at a fixed price.
The warrant sales will add to the $12 billion profit that Treasury says the government has realized from its $45 billion bailout of Citigroup. Treasury released that estimate in December when it completed the remaining sales of Citigroup common stock that the government held.
GM adding 750 jobs in Flint
DETROIT (AP) -- General Motors says it will add a third shift and 750 jobs to a Flint, Mich., factory that makes Chevrolet Silverado and GMC Sierra pickup trucks.
The automaker says it is adding the shift in response to demand for heavy-duty pickups. The shift will start in the third quarter.
GM will fill the shift by recalling laid-off workers who will start arriving in the second quarter. It expects to hire no new employees.
The Flint factory currently runs two production shifts and employs about 2,100 hourly and salaried workers. It made 115,000 trucks last year.
Including the new Flint workers, GM has promised to add or retain 8,882 manufacturing jobs since exiting bankruptcy in July.
RadioShack CEO is leaving
NEW YORK (AP) -- RadioShack said Monday its chairman and CEO, Julian Day, is leaving and announced disappointing fourth-quarter guidance that sent shares down 11 percent in midday trading.
RadioShack has struggled with competition from online retailers like Amazon.com and bigger electronics players like Best Buy. It brought on former investment banker Day -- known for pulling Kmart out of bankruptcy -- as chairman and CEO in 2006 to help turn around results.
Since then the company has shifted its focus to smart phones and wireless plans and mobile phone kiosks with some success. But Monday it said "disappointing performance" from its T-Mobile business and a shift in sales toward lower margin handsets hurt results in the fourth quarter. Smart phones such as the iPhone, which RadioShack recently began carrying, have a lower margin than other products.
CSX enjoys jump in profits
NEW YORK (AP) -- CSX, the nation's third largest railroad, said Tuesday that its fourth-quarter profit jumped 42 percent as carmakers and other industrial customers stepped up shipments.
The results capped off a year of near across-the-board recovery in shipments. Higher prices to ship everything from auto parts to fertilizer allowed the Jacksonville, Fla., company to grow its earnings at a faster pace than it gained new business.
The company, which operates its blue and yellow trains from the East Coast to the Mississippi River, earned $430 million, or $1.14 per share, compared with $303 million, or 77 cents per share, a year ago.
Revenue jumped 21 percent to $2.82 billion. Overall shipping volume rose 13 percent in the last three months of the year.
Emerling Ford up for award
Carl Emerling, president of Emerling Ford Mercury in Springville, is among 52 new-car dealers nominated for the national Time Dealer of the Year award.
The 42nd annual award will be presented Feb. 5 at the opening session of the National Automobile Dealers Association's convention and expo in San Francisco. A panel of faculty members from the University of Michigan's Graduate School of Business Administration will select the winner.
Two other New York State dealers, from Cicero and Westchester County, also are nominees. The award, presented in partnership with Goodyear, recognizes dealers for "exceptional business performance combined with distinguished community service."