In brief: Ford makes strides paying down debt
DETROIT – Ford Motor Co., the only Detroit automaker to avoid bankruptcy protection, said Wednesday it will reduce its huge debt by another $4 billion as it continues to show signs of financial strength.
The Dearborn, Mich., automaker will pay $3.8 billion in cash to a United Auto Workers trust fund that pays retiree health care bills, and it will pay out $255 million in dividends on preferred securities that had been deferred as the automaker worked its way through financial troubles. The company now will make quarterly payments on the securities, which are a combination of preferred stock and bonds.
Ford CEO Alan Mulally said in a statement that the payments are another sign of confidence that the company’s restructuring plan is working.
Associated Press
Exports boost Japan’s confidence
TOKYO – A key Japanese central bank report released Wednesday showed business confidence among Japan’s biggest manufacturers improved for a fifth straight quarter, thanks to a global recovery that has bolstered demand for the country’s exports.
The Bank of Japan’s quarterly “tankan” survey of business sentiment showed the main index for large manufacturers stood at 1. Three months ago it hit minus 14.
The figure represents the percentage of companies saying business conditions are good minus those saying conditions are unfavorable. The higher the number, the better the mood.
Associated Press
Briefcase
From wire reports
•Boeing has agreed to acquire combat engineering firm Argon ST Inc. for about $775 million in cash in a deal to expand its capabilities in intelligence gathering and warfare. Argon ST is a Fairfax, Va., company that develops a variety of systems used in surveillance, reconnaissance and combat.
•Amazon.com Inc. has purchased deal-a-day website Woot.com. Financial terms were not disclosed. Amazon said the Seattle-based online retailer expects to finalize the deal by the end of September.
•Biotechnology company Celgene said Wednesday it is expanding its array of cancer treatments with a deal to buy Abraxis BioScience Inc. for $2.9 billion in cash and stock. Celgene Corp. said the transaction could add $1 billion to its annual sales by 2015.
•As of this morning, millions of households and businesses have a new phone company: Frontier Communications. The change is part of Frontier’s $8.6 billion acquisition of 4.8 million Verizon customers in 14 states. Frontier now has 7 million customers in 27 states.