U.S. workers boost productivity

Worker productivity increased at a faster pace in the first three months of this year than previously estimated, and wage pressures moderated.

The Labor Department reported Wednesday that productivity rose at an annual rate of 2.6 percent from January through March. Labor costs rose at an annual rate of 2.2 percent in the first quarter, compared with a 4.7 percent surge late in 2007.

Cleveland

J.M. Smucker buying Folgers coffee

Jams and jellies maker J.M. Smucker is adding coffee to its menu of brands by buying Folgers from consumer products company Procter & Gamble in a $2.95 billion, all-stock deal.

The deal will nearly double Smucker’s size. Folgers will become the 10th No. 1-ranked brand in the Smucker stable that includes its namesake jams, Eagle Brand condensed milk, Hungry Jack pancake mix and two earlier acquisitions from P&G, Jif peanut butter and Crisco cooking oil.

Detroit

Quality of autos shows improvement

The quality of new cars improved across the industry this year, with Porsche, Honda, Toyota, General Motors and Ford among the automakers leading the pack, J.D. Power and Associates said Wednesday.

Porsche was the top brand in the annual ranking of vehicle quality. Others were Nissan Motor Co.’s Infiniti, Mercedes-Benz, and Toyota Motor Corp.’s Lexus and Toyota brands.

Chrysler LLC’s Jeep was the worst, with 167 problems per 100.

Chicago

Walgreen to settle suit for $35 million

Walgreen Co. has agreed to pay $35 million to settle a federal lawsuit alleging it boosted the price for prescriptions paid by Medicaid by switching from capsules to tablets, or vice versa, depending on cost. Federal officials said the practice increased the amount that Walgreens charged to the Medicaid program. Idaho and Washington will share the $35 million with 40 other states.