Briefcase

Coal-fired plants closing

AKRON, Ohio – FirstEnergy Corp. said Thursday that new environmental regulations led to a decision to shut down six older, coal-fired power plants in Ohio, Pennsylvania and Maryland, affecting more than 500 employees.

The plants, which are in Cleveland, Ashtabula, Oregon and Eastlake in Ohio, Adrian, Pa. and Williamsport, Md., will be retired by Sept. 1. They have generated about 10 percent of the electricity produced by FirstEnergy over the last three years, the company said.

In a statement James Lash, head of the company’s generation unit, indicated that a review of the company’s coal-fired plants determined it would not be cost-effective to get the older ones into compliance with environmental regulations the U.S. Environmental Protection Agency announced in December.

The new standards are designed to reduce emissions of mercury and other toxic pollution from coal- and oil-fired power plants. An Associated Press survey found that the changes were likely to result in the mothballing of dozens of units in the Midwest and in the coal belt – Kentucky, West Virginia and Virginia.

Associated Press

Motorola suffers 4Q loss

LIBERTYVILLE, Ill. – Motorola Mobility sank to a fourth-quarter loss while trying to close its proposed $12.5 billion sale to Google. The setback, announced Thursday, came amid fierce competition in the markets for smartphones and tablet computers.

The disappointing results mirrored preliminary numbers that Motorola Mobility Holdings Inc. released three weeks ago.

At this point, Motorola’s performance is probably a bigger concern to Google’s shareholders than Motorola’s because of the deal the two companies reached last summer. Google has agreed to pay $40 per share for Motorola’s vast patent portfolio, as well as its devices. The acquisition still needs regulatory approval in the U.S., Europe, China, Russia and several other countries.

Google Inc. is counting on Motorola’s more than 17,000 patents to help insulate its Android software for mobile devices against lawsuits alleging that the system stole innovations owned by other companies, including tech heavyweights such as Apple Inc., Microsoft Corp. and Oracle Corp.

Associated Press

Penney outlook lifts stocks

NEW YORK – J.C. Penney Co. shares soared nearly 19 percent Thursday after the department store chain delivered a 2012 profit outlook that was well above analysts’ projections.

The guidance signaled that the chain’s profit won’t be hurt as Penney embarks on an ambitious transformation plan over the next four years.

The company expects adjusted earnings per share to be at least $2.16 for the fiscal year, above analysts’ $1.60-per-share estimate, according to FactSet.

Penney’s new CEO Ron Johnson, who was the mastermind behind the successful Apple Inc. stores, laid out an aggressive plan Wednesday to reinvent the business. That includes a new pricing strategy that ends rampant discounting and focuses on everyday lower prices. It also entails carving out its stores into 100 minishops among other plans.

Mike Kramer, chief operating officer, told investors on Thursday that it plans to spend $800 million this year to install the first wave of the shops and improve technology. The company plans to open 10 shops at each of its 1,100 stores this year.

Associated Press