U.S. auto sales fall sharply

U.S. auto sales fell precipitously in the first part of October, as employee-discount incentives ended and gas prices made consumers jittery, the results of a survey released Friday suggested.

The numbers also showed a possible fallout from strong summer sales, according to Power Information Network, a division of J.D. Power and Associates.

New vehicle sales were down 33 percent in the first nine days compared with the same period a year ago, and down 44 percent compared with the first nine days of September, the survey found.

Sales at No. 1 automaker General Motors Corp. were down 57 percent compared with early October, while Ford Motor Co.’s sales were down 45 percent. The other seven major automakers also showed declines.

S-R offers free e-mail alert service

Want to get a jump on your competitors?

Sign up for The Spokesman-Review’s new e-mail alert service and receive regular bulletins covering major local, regional and national business stories.

The e-mail service is free. To receive it, register at www.spokesmanreview.com/alerts.

Ambassadors earnings, revenues rise

Spokane-based Ambassadors Group Inc. reported third-quarter net income of $14.6 million, compared with $8.9 million for the third quarter of 2004. That equates to per-share earnings of 68 cents, an increase of 58 percent from earnings of 43 cents per share for the same period one year ago.

The company, which arranges student travel and business group tours, said earnings take into account Ambassadors’ two-for-one stock split, which occurred Sept. 15.

Net revenue increased 42 percent in the third quarter to $30.4 million, from $21.4 million in the same period of 2004.

In a conference call Friday, Ambassadors CEO Jeff Thomas said the company faces challenges in 2006, including rising airline fuel surcharges. Even so, Ambassadors has booked 28,000 travelers for trips in 2006; one year ago, it had 19,500 bookings for 2005.

Refco tries to hold on to cash and customers

• New York

Weighed down by an accounting scandal, a former chief executive under indictment and the possibility of serious trouble with the Securities and Exchange Commission, commodities broker Refco Inc. appears to be struggling to hold on to as many customers — and as much cash — as possible.

There was more evidence Friday that the $545 million accounting scandal in a Refco subsidiary that led to the arrest of ex-CEO Phillip Bennett was spilling out into the company’s other businesses. Credit rating agency Standard & Poor’s said the situation was getting so bad the company was likely to default on its debt payments due to a lack of cash.

Refco said Friday it would begin “winding down” its stock, bond and credit portfolios within its Refco Securities LLC subsidiary, selling all its holdings to pay off its customers and, hopefully, preserve some of its capital to potentially use to help keep the company going.

Combined with the company’s previous move to freeze customer accounts in its Refco Capital Markets subsidiary, an offshore broker/dealer, analysts said Refco is busy trying to keep customers from fleeing the company and taking their money with them.

Unions want cut of iPod TV sales

• Los Angeles

In a show of unity, five unions representing actors, writers and directors issued a joint call for talks to make sure their members get a cut of revenue generated by the sale of TV shows on Apple’s iTunes software.

ABC has agreed to allow episodes of shows such as “Lost” to be downloaded for portable viewing on the new video iPod from Apple Computer Inc.

ABC was the first network to allow viewers to download episodes of their shows the day after they air on TV, but other networks are expected to follow shortly.

The unions have not yet called ABC or its parent, The Walt Disney Co., to discuss how much of the $1.99 that Apple is charging for a single episode should go to writers, actors and directors.

Delaware approves MBNA acquisition

• Charlotte, N.C.

Delaware’s banking commissioner on Friday approved the proposed $35 billion acquisition of MBNA Corp. by Bank of America Corp., moving the buyout of the world’s largest independent credit card issuer one step closer to completion.

The deal still must be approved by the Federal Reserve and MBNA shareholders at a meeting set for Nov. 3.