BUSINESS BRIEFS
Dollar hits record low against euro; yen gains as well
Associated Press
The dollar fell to a record low against the euro and more than a 12-year low against the yen in trading yesterday.
The dollar touched $1.5573 per euro during the Tokyo trading session, the weakest level since the European currency's 1999 debut. Against the Japanese currency, the dollar traded as low as 101.10 yen, the lowest since December 1995.
The weaker dollar is generally good for tourism because it increases the purchasing power of foreigners when they convert their home currency into dollars.
HUMANA SHARES DOWN 13 PERCENT
LOUISVILLE, Ky. — Humana Inc.'s top executive gave assurances yesterday that a sharp drop in the health insurer's first-quarter and full-year earnings estimates was a "one-time situation" due to higher-than-expected claims in its stand-alone Medicare prescription plans.
Still, Humana shares tumbled more than 13 percent in trading yesterday, marking the second straight big drop in its stock value.
Overall, the health insurance industry had a mixed performance in trading yesterday after Humana joined WellPoint Inc. this week in cutting earnings guidance for 2008.
In slashing its profit expectations, WellPoint cited factors including medical costs, lower fully insured enrollment and a weak economy.
EXECUTIVE ADMITS COWS WERE SICK
WASHINGTON — The president of the California slaughterhouse at the center of the largest beef recall in U.S. history acknowledged yesterday that cows too sick to stand apparently were forced into the food supply at his plant.
Federal rules mostly ban such cows, known as downer cattle, because they pose a higher risk of causing infections, including mad cow disease.
The admission from Westland/Hallmark Meat Co.'s Steve Mendell came after a House subcommittee made him watch undercover video of abuses of cattle at the plant. With his head in hand at times, Mendell watched as cows were dragged by chains, jabbed by forklifts and shocked to get them into position to be slaughtered.
UPS FOCUSING ON OVERSEAS GROWTH
ATLANTA — UPS Inc. may not meet its first-quarter earnings guidance and plans to focus more on growth opportunities overseas because of the uncertain U.S. economy, executives of the world's largest shipping carrier said yesterday.
CEO Scott Davis said the Atlanta-based company still considers its domestic market to be important to its future, but said the company can't rely on U.S. package volume growth alone. International growth will become more important in the future, he said.
China, India and Europe provide good growth opportunities for UPS, said David Abney, the company's chief operating officer.
TARGET PROBLEM MAY BE SOLVED
MINNEAPOLIS — Target Corp., which has been balancing pressure to sell a credit card portfolio that it once pledged to keep, said yesterday that it may have found a solution.
Target said it was in talks to sell half of its credit card receivables for about $4 billion. Target did not disclose the potential buyer. Target said the proposed transaction is subject to conditions including "acceptable economics at the time of closing."
Target plans to open three stores in Hawai'i next year.
A deteriorating economy has made some people worry that Target's credit card portfolio could suffer, although Target has said that it maintains adequate reserves for losses. If it sells half the portfolio, it will lock in a gain now in exchange for giving up some future credit card profits. Target made the announcement after the stock market closed. Its shares rose $1.05, or 2.1 percent in after-hours trading after rising 49 cents to end the regular session at $51.09.
