Business today

A BIT OFF THE MARK: Walter Industries failed to meet key financial targets in 2002, and that meant lower bonuses for most of its senior executives. President and Chief Executive Don DeFossett took the biggest hit last year, taking home cash incentives of $134,536 versus $1.05-million in 2001. But DeFosset, who joined the company in November 2000, did well in other respects. His salary rose 7 percent to $704,167, he received options to purchase 102,000 shares of company stock at $11.03, and he received miscellaneous compensation of $123,833, including $71,528 to cover temporary housing or moving costs and another $11,909 for income tax preparation services. Walter's stock closed Monday at $8.92, down 17 cents, or 1.87 percent.

AIRBORNE GETS OFF THE GROUND: Airborne Inc. is negotiating to sell its ground operations to DHL Worldwide Express for cash at a premium over the express mail company's current stock price. The third-largest U.S. package delivery service said its air operations would remain wholly owned by current shareholders should a deal be reached.

BOARDROOM TO CLASSROOM: Goldman Sachs Group Inc. co-President John Thornton resigned to teach in China, leaving John Thain as the leading candidate to succeed Henry Paulson as chief executive officer. Thornton's departure underscores Goldman's increasing dependence on trading for profits as a three-year stock slump saps demand for equity underwriting and advising on mergers.

BET YOU HARDLY NOTICED: The average nationwide price of gasoline fell nearly 4 cents per gallon at the pump last week. The Energy Department's statistical arm reported that regular unleaded gasoline declined 3.8 cents, on average, to $1.69 per gallon -- the first decline in three weeks.

TREASURY AUCTION: Interest rates on short-term Treasury securities rose in Monday's auction. The Treasury Department sold $17-billion in three-month bills at a discount rate of 1.150 percent, up from 1.115 percent last week. An additional $17-billion was sold in six-month bills at a rate of 1.150 percent, up from 1.110 percent. Both rates were the lowest since March 3.

EARNINGS

Kmart Corp.: The largest U.S. retailer to file for bankruptcy protection, which is closing about 316 stores and eliminating as many as 35,000 jobs after shuttering another 283 outlets last year, said its loss for the fourth quarter ended Jan. 29 narrowed to $1.1-billion after closing stores and firing workers.

Walgreen Co.: The nation's largest drugstore chain rode its strength in prescriptions to a 14 percent increase in profits for the second quarter ending Feb. 28 but said the advent of lower-cost generic drugs is slowing its pharmacy sales growth.

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