The company said that its 26 percent drop in quarterly profits was due to $245 million in litigation expenses and the impact of foreign currency rates.
Banking + Finance
Best Buy’s stock price dropped as the company confirmed its expected decrease in quarterly earnings and same-store sales; meanwhile, founder Richard Schulze and CEO Hubert Joly will reportedly meet this week.
A new lawsuit reportedly accuses the bank of turning a blind eye to Tom Petters’ fraud; BMO Harris Bank, which acquired M&I, denies the claims.
The company plans to rename the just-acquired dealership Chevrolet of Delano and make its power sports division a standalone dealership; the acquisition is the latest in a series of dealership purchases that it has recently made.
The fast-growing fitness center chain said that it has bought hair-removal company Waxing the City, which will open its first Minnesota location in Woodbury next month.
Hutchinson Technology’s second-largest shareholder is encouraging the company to consider selling one of its divisions and to explore other alternatives if it’s unable to return to profitability during its current fiscal year.
The Burnsville-based retailer expects that the acquisition will make it a nearly $1.5 billion company.
3M CEO Inge Thulin said the company aims to grow revenue from existing businesses by 4 to 6 percent annually between 2013 and 2017; meanwhile, the company hopes to increase earnings per share by 9 to 11 percent each year during that period and boost research spending to 6 percent of sales by 2017.
The Plymouth-based travel agency operator said that the acquisition will add about $850 million in total sales volume to its bottom line.
President and CEO Chris Policinski said in a prepared statement that the co-op’s strong third-quarter results were driven by its dairy foods and animal feed businesses—and he expects to end the year strong.
Can a campaign that shows
employees thanking bosses for their insurance plan be believed?
Residential real estate brokerage firm HomeServices of America has formed a new joint company that will launch a real estate brand called Berkshire Hathaway HomeServices and more than quadruple its network of brokers from about 16,000 to more than 69,000.
3M, Tennant, and Donaldson recently lowered their earnings outlooks, citing current economic conditions.
Amid dismal quarterly earnings, Imation also said that it will explore “strategic alternatives” for its consumer electronics brands and businesses as it increases its focus on data storage and security; an analyst said that although Imation has “the resources to be successful,” he doesn’t see such businesses as highly attractive to potential buyers.
CEO Inge Thulin said that the company continues to grow despite a “slow-growth economy,” although it now expects 2012 earnings to be in the range of $6.27 to $6.35 per share—down from the previously expected $6.35 to $6.50 per share.
Target, which has been seeking a buyer for almost two years, said that it will “continue to earn a substantial portion of the profits” generated by its credit card portfolio.
Merrill Corporation is expected to essentially replace its existing $626 million of debt with new loans that have later deadlines, and both Moody’s and S&P expect to upgrade the company’s credit ratings if the refinancing is executed as planned.
The stock surge came after Debtwire news service reported that private equity firm Cerberus Capital Management is trying to arrange $4 billion to $5 billion in debt financing to back a bid.