LITTLE ROCK — QUOTE OF THE DAY
“While there has been some acceleration in
consumer spending recently, it was aided by unseasonably warm weather.”
Robert Niblock,
chairman, chief executive officer and president of Lowe’s Cos.
Article, 1DT-bills hit 4-week low at auction
WASHINGTON - Interest rates on short-term Treasury bills fell in Monday’s auction to the lowest levels in four weeks.
The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.085 percent, down from 0.095 percent last week. Another $27 billion in sixmonth bills was auctioned at a discount rate of 0.140 percent, down from 0.145 percent last week.
The three-month rate is the lowest since three-month bills averaged 0.080 percent four weeks ago on April 23.
The six-month rate is the lowest since those bills averaged 0.130 percent, also on April 23.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,997.85 while a six-month bill sold for $9,992.88.
That would equal an annualized rate of 0.086 percent for the three-month bills and 0.142 percent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged up to 0.20 percent last week from 0.18 percent the previous week.
Murphy sells $500 million of notes
Murphy Oil has sold $500 million of 4 percent notes that mature on June 1, 2022, the El Dorado firm says.
Murphy will use the money to repay debts and for other general corporate purposes, Zacks Equity Research reported. It will repay its 10-year, $350 million bond, which matured on May 1.
Murphy’s long-term debts on March 31 were $250 million, unchanged from a year earlier.
Murphy continues to have a strong financial position, Zacks said. Cash generated from operations during the first quarter was $991 million compared with $475 million a year earlier.
Murphy had cash and cash equivalents in the first quarter of $937 million, which should help the company meet its increased interest burden, Zacks said.
JPMorgan shelves stock-rebuy plan
NEW YORK - JPMorgan Chase Chief Executive Officer Jamie Dimon said the bank is suspending plans to buy back its own stock.
Dimon said Monday that the bank will continue to pay a dividend despite the $2 billion trading loss disclosed on May 10.
“It’s an embarrassment, it’s a black mark,” Dimon said of the trading loss. He also said the bank’s balance sheet was “barely nicked” by the loss.
Speaking at a conference Monday organized by Deutsche Bank, Dimon said JPMorgan is preparing for new international regulations that force banks to hold more capital to prepare for economic downturns. JPMorgan’s was scheduled to buy back $15 billion shares through the end of the first quarter of 2013.
JPMorgan’s stock fell 98 cents, or 2.9 percent, to $32.51 on Monday.
Dimon’s announcement is an about-face from earlier statements. At a meeting with investors in February, Dimon had said buying back stock helps the company meet regulatory requirements quicker.
“I don’t mind the low stock price,” Dimon had said then. The bank bought a lot of stock back in 2011 at $36 a share.
Usually, the bank buys back the shares it issues for employee stock-based incentive awards.
EU sets antitrust deadline for Google
BRUSSELS - The European Union has given Google “a matter of weeks” to propose remedies to antitrust concerns arising from its alleged dominant position in the online search market.
European antitrust chief Joaquin Almunia said that after a one-and-a-half-year investigation after complaints from Google’s rivals, the EU had pinpointed four areas of concern centering on how the Internet giant deals with its search results, how content is used, how advertising is run on its search engine and how advertisers are restricted from using rival search engines.
Alumina called on Google to propose the solutions to the concerns quickly or face formal antitrust investigation and charges. At the end of a formal EU investigation, Google could theoretically face a fine of up to 10 percent of its annual revenue.
“Restoring competition swiftly to the benefit of users at an early stage is always preferable to lengthy proceedings,” Almunia said.
Google, the world’s most popular search engine, also faces a similar antitrust investigation by the Federal Trade Commission in the United States.
Al Verney, a spokesman for Google, said the online company disagreed with the EU’s conclusions but added that “we’re happy to discuss any concerns they might have.” Both sides have been in close contact over the past months to try to find a way out of the standoff.
Campbell’s profit slips on soup sales
NEW YORK - Campbell Soup Co. is still struggling to heat up its lukewarm soup sales, with net income slipping by 5 percent in the latest quarter even as the company spent more on marketing.
The Camden, N.J.-based company is pushing to regain lost ground amid growing competition and evolving consumer tastes. To attract busy, younger consumers, for example, Campbell plans to roll out a variety of soup pouches in flavors like Moroccan chicken and coconut curry early next fiscal year.
The company has had to raise prices to offset higher costs for ingredients, and volumes are continuing to slip in key categories.
Chief Executive Officer Denise Morrison said the company did not strike the right balance in pricing, promotions and advertising in the quarter.
For the year, Campbell said it still expects its adjusted earnings per share to fall between 5 percent and 7 percent from last year, which would indicate a profit of $2.35 to $2.42.
For the three months ended April 29, Campbell said it earned $177 million, or 55 cents per share. That compares with a net income of $187 million, or 57 cents per share, in the same quarter last year.
Total revenue for the quarter rose to $1.821 billion, from $1.813 billion. Analysts expected revenue of $1.818 billion
Shares of Campbell fell 65 cents, or 2 percent, to $32.75 in Monday trading.
Business, Pages 22 on 05/22/2012