Business news in brief

Coca-Cola to slash up to 1,800 jobs

NEW YORK -- Coca-Cola said it will cut between 1,600 and 1,800 jobs in coming months to trim costs.

The world's biggest beverage maker said it began notifying workers in the U.S. and some international locations Thursday. It said job types are across all parts of its business and include about 500 cuts at its Atlanta headquarters.

The company, which makes Sprite, Powerade, Vitaminwater and other drinks, has about 130,600 employees around the world, according to FactSet.

In an emailed statement Thursday, Coca-Cola said it will "continuously look for ways to streamline our business," suggesting additional cuts could be announced later.

Coca-Cola Co. and rival PepsiCo Inc. have been looking for ways to cut costs as their soda businesses have flagged in North America. In October, Coca-Cola said it planned to lower costs by $3 billion a year. It said the savings would be used to pay for increased marketing needed to drive up beverage sales. The announcement came as the company reported disappointing revenue for its third quarter, with global beverage volume up just 1 percent.

The company said last month it expects earnings growth of 4 percent to 5 percent for 2014, which is short of its long-term target. Coca-Cola said it doesn't expect earnings growth for this year to be much different.

Coca-Cola's shares rose 52 cents, or 1.2 percent, to close Thursday at $43.51.

-- The Associated Press

U.S. 30-year loan rate falls to 3.73%

WASHINGTON -- Average U.S. mortgage rates started the year by dipping to new lows, with the benchmark 30-year rate marking its lowest level since May 2013.

Mortgage giant Freddie Mac said the nationwide average for a 30-year fixed rate mortgage fell to 3.73 percent this week from 3.87 percent last week.

The average for a 15-year mortgage slid to 3.05 percent from 3.15 percent last week.

A year ago, the 30-year mortgage stood at 4.51 percent and the 15-year mortgage at 3.56 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to keep long-term rates low.

To calculate average mortgage rates, Freddie Mac, the Federal Home Loan Mortgage Corp., surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was 0.6 point, unchanged from last week. The fee for a 15-year mortgage declined to 0.5 point from 0.6 point.

-- The Associated Press

Family Dollar quarter earnings fall 47%

NEW YORK -- Family Dollar Stores Inc., the discount retailer at the center of a takeover battle, posted a 47 percent decline in first-quarter earnings after a new pricing strategy and a shift to lower-margin products took a toll on profit.

Net income fell to $41.4 million, or 36 cents a share, from $78 million, or 68 cents, a year earlier, the chain said Thursday in a statement. Excluding some items, profit was 44 cents a share in the period, which ended Nov. 29. Analysts had projected 62 cents on average, according to data compiled by Bloomberg.

Even as the retailer struggles to get its business back on track, it has drawn takeover bids from two rivals -- Dollar Tree Inc. and Dollar General Corp. -- which want to use Family Dollar's 8,100 stores to bolster their chains. While a possible buyout looms, the company has been transitioning its sales strategy from periodic promotions to an everyday low price approach. It's also getting more of its revenue from food and tobacco, categories that carry lower profit margins.

Family Dollar's shares fell 35 cents to close Thursday at $78.51. The stock had been little changed this year through Wednesday after gaining 22 percent in 2014.

-- Bloomberg News

Beer brands drive Constellation profit

Constellation Brands Inc., the global seller of wine and spirits, raised its profit forecast for the year after sales of beer brands such as Modelo Especial and Corona Extra fueled growth.

Earnings will be $4.25 to $4.35 a share this year, the Victor, N.Y.-based company said Thursday in a statement. That's up from a previous forecast of $4.10 to $4.25 and above the average analyst estimate of $4.24. Constellation's shares jumped as much as 6 percent after the results were released.

The company's beer sales gained 16 percent last quarter, outpacing its total growth of 7 percent. That helped make up for lower wine sales and higher spending on promotions. Constellation bought the rights to Corona, the country's most popular beer import, in 2013 as part of a $5.3 billion deal with Belgium's Anheuser-Busch InBev NV.

-- Bloomberg News

1,400 Dunkin' Donuts to open in China

Dunkin' Brands Group Inc. entered a franchise agreement to add more than 1,400 Dunkin' Donuts restaurants in China in the company's largest development agreement ever.

A joint venture of Jollibee Foods Corp. and Jasmine Asset Holding Ltd. will open and operate the restaurants as a franchisee, Canton, Mass.-based Dunkin' said Thursday in a statement. The first location may open in the fourth quarter.

Dunkin', which also owns the Baskin-Robbins ice-cream chain, has been expanding since going public in 2011, announcing new locations in the U.S. West, Australia, Vietnam and Germany. The company already has 16 restaurants in China and more than 2,200 in its Asia Pacific region.

Jasmine is a subsidiary of RRJ Capital, an investment firm that focuses on China's food and consumer industries. The firm has offices in Hong Kong and Singapore. Jollibee, based in Manila, runs its namesake, Chowking and Mang Inasal fast-food outlets.

Dunkin' shares rose 35 cents to close Thursday at $43.89. The shares fell 12 percent last year.

The company has more than 11,000 restaurants in 36 countries.

-- Bloomberg News

Business on 01/09/2015

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