BUSINESS BRIEFS
UAW leaders like Chrysler contract
Associated Press
DETROIT — Local union leaders voted overwhelmingly yesterday to recommend approval of a tentative four-year agreement between the United Auto Workers and Chrysler LLC, paving the way for a vote by members, UAW President Ron Gettelfinger said.
Chrysler workers would see gains of $10,235 over the life of the agreement, according to a UAW booklet of contract highlights obtained by The Associated Press. Chrysler also would contribute $10.3 billion toward the creation of a union-run trust for retiree healthcare. The booklet also said the contract provides "unprecedented product guarantees" to protect thousands of jobs and maintain a U.S. manufacturing base.
The voice vote approving the tentative agreement came after a four-hour meeting at which national bargaining committee members explained the deal to several hundred local leaders.
CITIGROUP OFF 3% AFTER BAD QUARTER
NEW YORK — Citigroup Inc.'s report of a 57 percent drop in third-quarter profit didn't surprise anyone. What did sound some alarms was the biggest U.S. bank's somber take on current conditions — suggesting that a hoped-for industry rebound may not come so easily.
Investors responded by sending Citigroup's stock down more than 3 percent, and analysts made it clear that shareholders' displeasure with CEO and Chairman Charles Prince is escalating.
DEFIBRILLATOR WIRES RECALLED
MINNEAPOLIS — Medtronic Inc. is stopping distribution of wires that connect some of its defibrillators to patients' hearts after learning they may have contributed to five deaths.
Medtronic shares dropped more than 12 percent by midday yesterday after the disclosure.
A defibrillator monitors a patient's heartbeat; if it senses an abnormal heart rhythm, it delivers an electronic shock to reset the heart to a normal beat. A defibrillation system consists of a device implanted near the shoulder with one or more leads connecting the device to the heart.
Medtronic said it discovered a "small chance of fractures in particular locations" on Sprint Fidelis models 6930, 6931, 6948 and 6949. The company is asking doctors to stop implanting the leads and return unused leads to Medtronic.
BANK FUND TO AID CREDIT MARKETS
NEW YORK — The nation's three largest banks said yesterday they are teaming up to create a rescue fund of sorts — potentially as large as $100 billion — to help bail out troubled global credit markets.
Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., at the prodding of the Treasury Department, will buy distressed debt from markets roiled during the summer's financial crisis. The joint effort is the result of more than a month of talks mediated by the government.
The plan is designed to inject more confidence into the market and increase investor appetite for the short-term debt known as commercial paper. The market for commercial paper, which is crucial for companies to fund short-term borrowing needs and which has historically been considered very safe, locked up this summer.
MATTEL PROFITS FALL 1% IN 3RD QUARTER
LOS ANGELES — Mattel Inc. yesterday reported a 1 percent drop in fiscal third-quarter profit due to the impact of charges, costs and supply chain delays related to multiple product recalls by the world's biggest toymaker.
The company said net income for the quarter ended Sept. 30 slipped to $236.8 million, or 61 cents per share, from $239 million, or 62 cents per share, in the year-ago period. Latest-quarter results included charges of about $40 million related to the company's product recalls covering merchandise containing small magnets or tainted with lead paint. Sales were up 3 percent to $1.84 billion from $1.79 billion a year ago, mainly helped by the weaker dollar.
