May 10, 2008 in Business

787 delay to reach two years for some

From Wire Reports The Spokesman-Review
 

Delays in getting Boeing Co.‘s new 787 jetliner off the ground will push back deliveries to three big customers. Air Canada and International Lease Finance Corp., whose combined orders are for more than 100 of the fuel-efficient jets, expect delays of two years or more.

Japan’s All Nippon Airways was supposed to get the first of its 787s this month, but will have to wait until late 2009.

The delays could cost Boeing billions of dollars in penalty payments and additional research and development spending.

FedEx Corp. said its fuel costs in the fourth quarter will likely be $100 million more than budgeted.

As a result, the shipping company said it expects profits of $1.45 to $1.50 per share for the three months ending May 31, down from its previous prediction of $1.60 to $1.80.

FedEx customers pay surcharges to help offset fuel costs, but they don’t keep pace with the rising cost of crude oil, company officials said.

“Microsoft Corp. has appealed a $1.39 billion fine imposed in February by the European Commission for the company’s failure to comply with a 2004 antitrust order.

The fine had marked the tentative end to a long-running fight between the European Union and Microsoft, triggered by a 1998 complaint by Sun Microsystems Inc.

Sun alleged Microsoft was refusing to supply all the information servers need to work with its market-dominating Windows operating system.

“The chief executive of youth apparel retailer American Eagle Outfitters Inc. received a 7.6 percent cut in compensation for 2007 as the company’s stock slumped.

But James V. O’Donnell still hauled in $14.4 million, including $15,250 to offset car expenses and $5,222 in club membership fees

The company slashed O’Donnell’s bonus in half, but offset the decrease with a 32 percent jump in salary and a 4 percent bump in stock and option awards, according to a Friday filing with the Securities and Exchange Commission.

“The Rockefeller family wants Exxon Mobil to split the position of chief executive and chairman, as part of a push to focus more on renewable energy.

Their shareholder resolution was joined Friday by the RiskMetrics Group, a powerful advisory group of institutional investors.

Exxon Mobil was formed by spinoffs of John D. Rockefeller’s Standard Oil Trust.

It recently reported a first-quarter profit of $10.9 billion – the second-biggest U.S. quarterly corporate profit ever.

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