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Business Today

'Wal-Mart Law' is challenged

By TIMES WIRE
Published February 8, 2006

A national retail industry trade association filed suit Tuesday challenging a Maryland law designed to pressure Wal-Mart Stores Inc. to spend more money on health care for its employees. The law requires companies with more than 10,000 employees in Maryland to spend at least 8 percent of payroll on health care or contribute the difference to the state Medicaid fund. The Retail Industry Leaders Association says the law discourages job creation and is invalid because it violates the federal Employee Retirement Income Security Act.

Toys R Us names new chief

Toys R Us Inc., the nation's second-largest toy retailer, said Tuesday it named Gerald L. Storch, a former Target Corp. vice chairman with experience in rejuvenating tired retailers, as its new chairman and CEO. Storch fills the top spot left open when John H. Eyler departed in July.

Consumers, weighed down by high debt loads and low savings rates, increased borrowing last year by the smallest amount in 13 years, the Federal Reserve reported Tuesday. The government said that borrowing on credit cards, auto loans and other forms of consumer debt rose by 3 percent in 2005, down from rates above 4 percent in the previous three years and a 7.7 percent surge in 2001. It was the smallest increase since a 1 percent rise in 1992.

The Walt Disney Co. is selling its 22 ABC Radio stations and network to Citadel Broadcasting Corp. in a $2.7-billion cash and stock deal that would hand Disney shareholders a majority stake in the new company. The deal does not include Disney's ESPN and Radio Disney network. The transaction is structured to be tax free to Disney shareholders and give them about a 52 percent stake in the new company.

Pfizer Inc. said Tuesday it is exploring options for its nearly $4 billion over-the-counter drug unit, including selling or spinning off the business, which includes Listerine mouth wash, Visine eye drops and Lubriderm skin lotion.

Interest rates on three-year Treasury notes rose to the highest level in nearly six years in a government auction on Tuesday. The Treasury Department auctioned $21-billion in three-year notes at a yield of 4.595 percent, up from 4.458 percent at the last such auction Nov. 15. It was the highest yield for three-year notes since they brought 5.633 percent in May 1998.

Coca-Cola Co.: The world's largest beveragemaker benefited from strong sales and growth in noncarbonated offerings, though its profit fell 28 percent, but beat Wall Street expectations when certain one-time items are excluded.

Cisco Systems Inc.: The world's largest network equipment maker posted lower net profits but higher sales for its fiscal second quarter.

Kforce Inc.: The Tampa professional staffing firm said its profit plunged 61 percent in the fourth quarter despite higher revenue as the year-earlier period enjoyed a tax benefit.

Danka Business Systems PLC: Danka, an office-equipment distributor with U.S. headquarters in St. Petersburg, reported higher profits in the quarter ended Dec. 31, partly due to favorable tax events.

[Last modified February 8, 2006, 01:14:12]