BUSINESS BRIEFS
Factory orders unexpectedly rise in October
Associated Press
WASHINGTON — Orders to U.S. factories rose unexpectedly in October although much of the gain reflected higher energy prices.
The Commerce Department yesterday reported that orders advanced by 0.5 percent in October, far better than the flat reading expected. However, much of the strength came from a big jump in the cost of petroleum and other energy prices, which pumped up orders at oil refineries and chemical plants. The orders figures are not adjusted for changes in prices.
Orders for nondurable goods such as petroleum products rose by 1.3 percent, helping to offset a 0.2 percent drop in demand for durable goods. The 0.5 percent overall rise in factory orders was the best showing since a 3.4 percent jump in July.
In other economic news, the Labor Department reported that worker productivity roared ahead at an annual rate of 6.3 percent this summer while wage pressures dropped sharply.
OIL FUTURES DOWN AMID MIXED NEWS
NEW YORK — Oil futures fell yesterday to their lowest level in six weeks after a mixed government inventory report failed to offset a belief that supplies are growing faster than demand.
Investors shrugged off OPEC's decision to keep production levels steady, a possible sign prices have peaked for the year, analysts said.
In its weekly inventory report, the Energy Department's Energy Information Administration said crude supplies plunged by 8 million barrels last week, much more than the expected 700,000-barrel decline. That caused oil prices to jump briefly above $90 a barrel, but other aspects of the report weighed on prices as the day wore on.
Crude supplies grew at the closely watched Nymex delivery terminal in Cushing, Okla. Inventories of heating oil rose when analysts had expected a decline, and gasoline supplies rose more than expected.
COMCAST REPORTS SLOWER GROWTH
PHILADELPHIA — Shares of Comcast Corp., the nation's largest cable operator, tumbled to a 20-month low yesterday after it disclosed that this year's cable revenue growth and cash flow will come in lower than expected. It said consumers were balking at increasing their spending in a slowing economy and that phone companies stepped up competition.
Meanwhile, Comcast also raised its capital spending to push advanced digital set-top boxes and its digital services.
Cable stocks have struggled in 2007 on worries of stricter regulations, a slowing economy and competition from phone companies luring customers with their video services. Cable had enjoyed an advantage of being able to deliver video, Internet and phone services through one provider.
TWINKIE MAKER SEES LOSSES SOAR
KANSAS CITY, Mo. — Interstate Bakeries Corp., maker of Hostess Twinkies and Wonder Bread, has reported a large monthly loss, driven by costs tied to the planned closure of four bakeries in Southern California.
In a court filing Tuesday, the Kansas City-based company said it lost $18.1 million on sales of $217 million during the four-week period ending Oct. 20. During the previous month, the company lost $7.7 million on sales of $220.8 million. The sales were the lowest since it reported $204 million in January and the third-lowest since the company filed for bankruptcy in September 2004. Costs of goods sold and other operating expenses fell 3.3 percent from the previous month to $216.1 million.
Interstate Bakeries said in August it would exit the bread market in Southern California, closing four plants and laying off about 1,300 people by the end of October.
The company said it recorded severance and other costs of more than $7 million. Shares of Interstate Bakeries, which trade on the over-the-counter market, were up 1 cent to close at 6 cents yesterday.
