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Business Today

FACTORY ORDERS TICK UP: The Commerce Department reported Wednesday that orders placed with factories increased by a modest 0.3 percent last month, compared with a drop of 0.9 percent in January. The rebound wasn't as strong as the 1.5 percent increase economists were forecasting. "The manufacturing recovery is continuing, and it is moderate," said Clifford Waldman, economist at Manufacturers Alliance/MAPI, a research group. "Business investment, however, seems to be slowing, but we expected that because it shot out of the cannon in the second half of last year."

QWEST TRIAL DRAWS TO CLOSE: After more than six weeks of testimony about accounting methods, a federal jury in Denver will soon begin deliberating the fate of four former executives of Qwest Communications International accused of scheming to boost revenues and then lying about it to auditors. Grant Graham, Thomas Hall, Bryan Treadway and John Walker each faces 11 charges including fraud and conspiracy. In closing arguments Wednesday, defense attorneys argued that the four acted in good faith on a deal they believed was legitimate.

TYCO JURORS SEEK CLARIFICATION: On their 10th day of deliberations, jurors in the Tyco International case asked a judge Wednesday to clarify three counts of grand larceny related to the prosecution's charge that former CEO L. Dennis Kozlowski and former CFO Mark Swartz stole $38.5-million from the company by disguising it as forgiven loans. New York Supreme Court Justice Michael Obus explained that one "aggregate count" covers the entire $38.5-million, while the two others refer to the amounts allegedly stolen by each with the other's help. Kozlowski and Swartz are accused of looting Tyco of $600-million.

DAN RIVER SEEKS PROTECTION: Dan River Inc., 122-year-old maker of bedding and home furnishings, filed for bankruptcy court protection, joining dozens of textile makers unable to pay their debts in the face of competition from lower-cost imports. Dan River plans to borrow as much as $145-million to help fund operations as it restructures. The company said its business won't be interrupted. Its Chapter 11 filing in U.S. Bankruptcy Court in Newnan, Ga., listed $441.8-million in assets and $371.8-million in debts.

FCC SEEKS TIME TO NEGOTIATE: Regulators said Wednesday they would ask a federal court to delay a decision throwing out new rules designed to encourage competition for local telephone service. The 45-day delay, endorsed by all five members of the Federal Communications Commission, would provide time for the former Bell telephone companies and competitors to negotiate an end to the legal dispute that has held up competition rules for eight years.

DIGITAL LIGHTWAVE DELAYS 2003 RESULTS: Digital Lightwave told regulators Wednesday that it will be late in filing its annual financial statement for 2003. The Clearwater maker of fiber-optic testing equipment said it was unable to prepare the annual 10K report without "unreasonable effort or expense" because its management was focused on restructuring and negotiating with creditors. The company has repeatedly indicated it may seek bankruptcy protection if it cannot refinance or restructure debts.

FREDDIE MAC DIRECTORS RETURNED: Directors of mortgage giant Freddie Mac were easily re-elected Wednesday despite questions from some shareholders about whether management was doing enough to address accounting problems and financial risk. About 100 shareholders, mostly individual investors rather than pension or mutual fund officials, gathered at the company's first annual meeting since the accounting crisis last June that forced out two CEOs and resulted in Freddie Mac paying a record $125-million civil fine to federal regulators, who blamed management misconduct for a $5-billion misstatement of earnings for 2000-2002.

Circuit City Stores Inc.: The nation's No. 2 consumer electronics chain reported a 26 percent increase in fourth-quarter net income as it cut costs. The results exceeded Wall Street expectations.

Circuit City also announced that it will acquire InterTAN Inc., an Ontario consumer electronics retailer with 840 stores, in a cash-tender offer for $14 per InterTAN common share, or about $284-million. Circuit City also plans to acquire privately held MusicNow Inc., an online digital-music service in Chicago, for an unspecified amount. The deal is expected to close in April.

Best Buy Co. Inc.: Fourth-quarter earnings jumped 51 percent as the company benefited from new stores, sales gains and the absence of its former Musicland division. The nation's largest consumer electronics chain also said Wednesday that its first quarter and full-year fiscal 2005 earnings would be higher than current analyst expectations.