Business digest

MISTAKE GIVES TRAVELERS A BREAK: United Airlines said it sold round-trip domestic air tickets for as little as $25 after a Web-based fare system the company uses malfunctioned for almost an hour. A spokeswoman said the airline will honor tickets sold during that period.

HONEYWELL TO TRIM STAFF: Honeywell International plans to lay off as many as 900 workers as it closes four of its advanced circuits facilities, saying an industrywide slump is forcing it to reduce capacity. Honeywell on Tuesday closed its advanced circuits plant in Buffalo and laid off the factory's 200 workers. An estimated 700 workers in Minnesota will likely lose their jobs when the company closes three facilities by the end of June. Since December 2000, major customers for electronic circuits, such as Motorola, have been slashing their spending on new equipment. Honeywell shares fell 9 cents to $39.25.

DRUGMAKER FACES INQUIRY: Schering-Plough Corp. said Food and Drug Administration criminal investigators in Puerto Rico are conducting an inquiry that may focus on several of the company's products. Schering-Plough makes Clarinex, the successor to the top-selling allergy drug Claritin, in Puerto Rico. A spokesman would not name other products the company makes in Puerto Rico. Schering-Plough's shares fell $3.49, or 12 percent, to $25.

SONICBLUE GETS DELAY: Sonicblue Inc. will not be forced to turn over data on its ReplayTV customers' viewing habits until a judge decides if the disclosures are an invasion of privacy. Walt Disney Co. and other companies have sued the company, alleging Sonicblue's video-recorder device violates copyright law by letting viewers share video over the Internet. U.S. District Judge Florence-Marie Cooper suspended another judge's order forcing Sonicblue to give up the data until a June 3 hearing.

MICROSOFT MATCHES PRICE CUT: Microsoft said it reduced the U.S. price of its Xbox game console by more than a third to $199, matching a cut by rival Sony Corp. for its PlayStation 2. The cuts, which analysts expected, come as Microsoft tries to establish the Xbox as a rival to PlayStation 2.

ADELPHIA CEO RESIGNS: Adelphia Communications Corp. said John Rigas quit as chairman and chief executive amid a U.S. accounting probe. Adelphia said in a statement that an audit by Deloitte & Touche LLP "will be suspended pending completion" of the company's inquiry into the delayed filing of its annual report. Director Erland Kailbourne replaces company founder Rigas, who will remain on the board as chairman emeritus. The company, under investigation by the Securities and Exchange Commission, revealed in March that it had backed $2.3-billion in loans to partnerships owned by the Rigases. The family used some of the funds to buy Adelphia securities. Rigas' move creates added confusion about the future of the Americast cable system in Pinellas County, which Verizon Communications is in the process of selling to Adelphia. Verizon spokesman Bob Elek has emphasized the sale is not final but also has scoffed at speculation it may fall apart.

DISNEY RETURNS AUDITED: The Internal Revenue Service is auditing the tax returns of Walt Disney Co., the company disclosed in a filing with the Securities and Exchange Commission. Disney said the IRS is examining returns from 1993 through 1995 and that auditors have indicated they will challenge "certain of the company's tax positions." Disney said its handling of tax matters was proper and it intends to defend any challenges, but added it has provided for possible additional payments. Disney shares rose 10 cents to $24.50.

SOUTHWEST FORECASTS PROFIT: Southwest Airlines' chief executive said he expects the company will post a profit for the second quarter and year. Speaking at the company's shareholders meeting, Jim Parker nonetheless advised reporters that the airline's second-quarter profit will "fall well below" the $175.6-million net income reported a year ago. Southwest's shares rose 32 cents to $17.91.

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