Business: Business digest

Business digest

Compiled from Times wires

OCTOBER INVENTORIES DROP: U.S. wholesale inventories fell 1 percent in October to $294.2-billion, the largest decrease in 19 years. October's results followed a 0.4 percent decrease in September, the Commerce Department said. Sales fell 1.4 percent, after falling 1.2 percent a month earlier. The inventory-to-sales ratio, a measure of the time goods sit unsold, rose in October to 1.32 months, from 1.31 months in September. The October ratio was the highest since June.

ORANGE FORECAST REMAINS STRONG: Florida will produce its third-biggest orange crop, even after dry weather stunted development of the fruit. The U.S. Agriculture Department estimated the 2001-2002 Florida orange crop at 231-million boxes, up 3.4 percent from last season and unchanged from the government's first forecast in October. Orange juice for January delivery fell 1.55 cents, or 1.7 percent, to 89.90 cents a pound on the New York Cotton Exchange. Orange juice prices have dropped 7.5 percent from a two-year high in November as winter approaches without any threat of cold weather to hurt production.

DILLARD'S BIAS CASE SETTLED: A federal judge has approved a $5.6-million class-action settlement of a race-bias lawsuit against Dillard's Inc., but halved the proposed awards to the named plaintiffs in the action. U.S. District Judge Ortrie Smith on Friday approved the settlement agreement, which calls for current and former Dillard's employees to receive between $500 and $6,000 apiece, depending on the length of their employment. But Smith ruled that proposed "special awards" of $100,000 to the plaintiffs who brought the lawsuit against Dillard's were excessive. Smith cut those awards to $50,000 apiece. The lawsuits complained of discrimination in hiring, pay and other working conditions.

BOFA BUYBACK REVEALED: Bank of America Corp. said it plans to buy back as many as 130-million shares, or about 8 percent of its outstanding stock. Bank of America said it plans to purchase the shares over the next 18 to 24 months. BofA shares closed at $62.45, up 73 cents.

TAUBMAN STEPS DOWN FROM MALL COMPANY: A. Alfred Taubman resigned as chairman of shopping mall company Taubman Centers Inc. a week after being found guilty of a price-fixing scheme while head of auction house Sotheby's Holdings Inc. Taubman will be replaced by his son, president and chief executive Robert Taubman, a spokeswoman said. The company, whose holdings include Tampa's International Plaza, built some of the nation's best-performing properties, such as the Mall at Short Hills in Short Hills, N.J., and Beverly Center in Los Angeles. Its shares rose 1 cent to $15.01.

AIRLINE WARNS OF LARGE LOSS: American Airlines chairman Donald Carty warned that the airline would record a "very, very big" loss in the fourth quarter and the full year. Carty is warning employees that the world's largest carrier is still losing millions every day, but he tempered his comments by saying there are "some encouraging signs," including that passenger bookings have increased through December into early January. Carty made the comments in weekend messages on American's Web site and its telephone hotline for 115,000 employees. Analysts expect AMR to post a record loss of up to $1.75-billion in the fourth quarter. AMR shares fell 7 cents to $22.75.

NESTLE-RALSTON DEAL APPROVED: Federal regulators approved the $10.3-billion purchase of Ralston Purina by Swiss food giant Nestle S.A., clearing the way for a pet food empire with such brands as Alpo, Purina, and Friskies. To win approval, the companies agreed to sell two of Ralston's dry cat food brands, Meow Mix and Alley Cat, the Federal Trade Commission said. Nestle now holds 32 percent of the U.S. cat food market, while Ralston has 26 percent. Nestle also adds Ralston's 28 percent share of the dog food market to its 10 percent.

KROGER TO CUT STAFF: Kroger Co. said it will fire 1,500 workers in the next 12 months and reduced profit forecasts through fiscal 2004. The job cuts, mainly management and clerical, represent less than 1 percent of the grocery chain's 312,000 workers, a spokesman said. Shares of Kroger fell $3.38 to $19.92, dragging down the shares of other grocery chains. Albertson's fell $1.62, or 4.8 percent, to $32.06; Safeway Inc. dropped $1.78, or 4.1 percent, to $41.44; and Winn-Dixie Stores Inc. fell 97 cents, or 6.9 percent, to $13.13.

COMPAQ PREPARES FOR NON-HP FUTURE: The head of Compaq Computer Corp. told employees that the company is exploring the company's future prospects should its merger with Hewlett-Packard Co. fall through. CEO Michael Capellas e-mailed a memo to employees explaining that the computer company must "maintain a pragmatic view of our business and a clear focus on the future" given opposition by the Hewlett and Packard families to the merger. The Hewlett and Packard families, which control 18 percent of HP stock, have said they oppose the deal. In a separate e-mail to all HP employees, CEO Carly Fiorina said that winning shareholder support is still very much within reach. Compaq shares dropped 21 cents to $9.49; HP shares fell $1.01 to $21.99.