Business Today

SILVER LINING IS STICKY: Business spending kept in check by the possibility of war and consumers kept at home by a snowstorm helped keep the U.S. economy subdued, says the Federal Reserve. Hardware sales saw a silver lining, the central bank noted: Fears of terrorism and the snow in the Northeast boosted the sales of duct tape, plastic and shovels. The central bank said that business spending, the key missing ingredient in the economic recovery, continued to lag in the early part of the year.

TECO CLOSES AT 16-YEAR LOW: Shares of TECO Energy Inc. slipped 1.8 percent Wednesday to their lowest close in nearly 16 years after the company said it would provide further information about its 2003 business outlook on March 28, rather than early in the month as originally planned. TECO's stock, which has been under pressure due to concerns about its wholesale power business, fell 19 cents to close Wednesday at $10.37, its lowest finish, adjusting for stock splits, since April 14, 1987, when it closed at $10.31.

TAUBMAN THUMBS ITS NOSE: Taubman Centers Inc.'s board rejected rival mall company Simon Property Group Inc.'s latest offer to structure a takeover that would minimize taxes for the Taubman family. The rejection shows Simon Property has failed to persuade the independent directors to break ranks with the Taubman family, which would remove the biggest obstacle to a sale.

NOW THAT'S A FINE!: Two American aerospace companies have agreed to pay a record $32-million in fines to settle civil charges that they unlawfully transferred rocket and satellite data to China in the 1990s. The agreement comes two months after the State Department accused the companies, Hughes Electronics Corp., a unit of General Motors, and Boeing Satellite Systems of 123 violations of export laws in connection with the Chinese data transfers.

UNION REJECTS AMERICAN DEAL: Union leaders for American Airlines mechanics and ground workers rejected a company proposal seeking $620-million in concessions, saying the carrier hasn't proven the amount is needed to keep it out of bankruptcy. The world's largest airline gave the Transport Workers Union a list of options to consider as a basis for negotiating part of the $1.8-billion in labor cuts the AMR Corp. unit says it needs to avoid a Chapter 11 bankruptcy filing.

TECH DATA SALES OFF: Tech Data Corp. said fiscal fourth-quarter sales fell 5 percent and full-year sales fell 8.7 percent for the Clearwater computer distributor. Sales in the quarter ended Jan. 31 fell to $3.95-billion from $4.16-billion. Full-year sales fell to $15.7-billion from $17.2-billion. Tech Data closed at $21.86, up 11 cent, on the Nasdaq.

A DIVIDED CONSECO?: Conseco Inc.'s money-losing consumer finance unit would be split into two pieces and sold for $1-billion under the winning bid in an all-night bankruptcy auction. Conseco Finance Corp. accepted a bid to sell its $23-billion mobile home loan portfolio to a New York investment partnership and another piece of its business to General Electric's consumer lending unit.

YOU'VE GOT (LOTS OF) MAIL: In a single 24-hour period on Monday and Tuesday, America Online says it trashed a billion e-mails offering mortgages and organ enhancement, instead of letting the spam slip into customers' inboxes. AOL said its members used "report spam" buttons on their e-mail software 5.5-million times in the period. The largest portion of messages reported -- about 10 percent -- came from users of Microsoft's Hotmail e-mail service. AOL said it blocks an average of 28 junk e-mails per account, per day.

AETNA COLLECTS RACIAL, ETHNIC DATA: Aetna Inc. has begun collecting data on the racial and ethnic backgrounds of its 14-million health plan members in what the insurer says is an effort to narrow the gap in medical treatment between whites and minorities. Aetna said it hopes to develop programs to narrow the gap, and stressed it will not use the information to limit coverage based on race. The Hartford insurer began the initiative in 13 states in September and will add four states, including Florida, this month. It plans eventually to seek the data from all its members.

COKE'S FIZZ IS ON TOP: As Coca-Cola Co.'s net income dropped and it laid off employees, Chairman Doug Daft got a $4-million bonus on top of his $1.5-million salary in 2002. Daft was not awarded any stock options, but his bonus increased from 2001, when he got $3.5-million. His salary remained unchanged. Coke's profit fell 22.5 percent in 2002, and the company announced it would cut about 1,900 employees.

TYCO AND A NEW LEAF: Tyco International Ltd. wants shareholders to sign off on a new board of directors and consider measures to tighten governance of the scandal-hit company. Some shareholders want the headquarters moved back stateside. A proposal to move Tyco's registered offices from Bermuda to Delaware is among resolutions up for voting at today's annual shareholder meeting, which is in Bermuda.

UNITED SELLING EMPLOYEE SHARES: United Airlines will allow the sale of a third of its remaining employee-held shares, setting the stage for the demise of its controversial employee stock ownership plan. United indicated the sale of 3.9-million shares in United parent UAL Corp. is likely to lower the employee ownership level below 20 percent, triggering "sunset" provisions that would eliminate key elements of the 9-year-old employee stock ownership plan.

MUSICAL APPLES?: Apple Computer Inc. and major record labels are expected to launch an online music subscription service within several weeks. The service would allow Apple users to buy and download digital music for their computers or iPod portable music players.

Earnings

Toys "R" Us Inc.:The toy retailer said its earnings in the quarter and year ending Feb. 1 climbed 76 percent compared with year-ago results that were depressed by restructuring charges. The Paramus, N.J., company issued a cautious profit outlook, and said that it planned to cut 200 positions at the corporate level, or 10 percent of its headquarters staff.

Saks Inc.: The department store giant increased profits by 26 percent in the quarter and year ending Feb. 1 but said the economy and "geopolitical risks" muddied the outlook for 2003. The Birmingham, Ala., retailer, which operates Saks Fifth Avenue stores and other department stores, said it would spend $200-million opening six new stores and making other improvements in 2003, but expects a decline in same-store sales.

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