By Matt Craze

Feb. 20 (Bloomberg) — Seasonal rains affecting Chiles Atacama Desert, where Codelco and BHP Billiton Ltd. operate copper mines, will continue tomorrow, national emergency service Onemi said on its website today.

The rains Replica Watches, which extend from December and March in the high plains of the Andes in northern Chile, will start to recede on Feb. 22, Onemi said.

To contact the editor responsible for this story: Matthew Craze at mcraze@bloomberg.net
Business Exchange E-mail Print READER DISCUSSION

These 5 weird mug shots will send chills down your spine: not only did they manage to land themselves in the slammer, but they didn’t even clean themselves up for their mug shot Replica Watches, which they knew we’d all get to see! Mike Tyson made his mug shot memorable by sticking out his tongue, while Heather Locklear’s mascara streaked face is far from her usual flawless look. Not forgetting Nick Nolte’s legendary mug shot, which is probably the scariest of them all!

Heather Locklear

Mike Tyson

Nick Nolte

Michael Jackson

Marilyn Manson

TORONTO — Health Canada is warning Canadians that people who take prescription antacid drugs known as proton pump inhibitors may be at increased risk of developing C. difficile.

The statement comes a week after the U.S. Food and Drug Administration issued a warning about the possible link between the commonly used drugs and C. difficile.

Health Canada says a link between the acid-suppressing drugs and C. difficile diarrhea hasn’t been confirmed but cannot be ruled out either.

Studies dating back to 2003 have suggested people who take the drugs for conditions such as acid reflux and stomach ulcers are at increased risk of developing C. diff.

Other factors known to increase the risk of C. difficile diarrhea include being elderly Replica Watches, having a severe illness, being hospitalized and taking antibiotics.

Health Canada says it has been reviewing the studies on an ongoing basis, and will continue to evaluate scientific data on the issue as it emerges.

By Molly Peterson

(Updates with FDA announcement in fifth paragraph.)

Jan. 13 (Bloomberg) — Seattle Genetics Inc. said its Hodgkin lymphoma drug Adcetris will carry a new boxed warning Replica Watches, the strictest U.S. caution, about a risk of dangerous brain infections.

Patients taking the medicine may develop a rare, potentially fatal condition known as progressive multifocal leukoencephalopathy or PML, the Bothell, Washington-based company said today in a statement. The revised label also will warn against using Adcetris with the cancer drug bleomycin because of risks of lung toxicity.

“Although PML in lymphoma patients can be caused by factors such as underlying disease and prior therapies that affect the immune system, a contributory role of Adcetris cannot be excluded,” Thomas Reynolds, Seattle Genetics chief medical officer, said in the statement.

Seattle Genetics declined 5.2 percent to $17.49 at 1:55 p.m. New York time.

Three patients have developed PML during treatment with Adcetris, the Food and Drug Administration said today in a drug safety communication. Symptoms may include mood changes, confusion, memory loss, weakness on one side of the body, and changes in vision, speech or walking. About 2,000 people worldwide have received Adcetris since its approval in August, the FDA said.

Adcetris, known chemically as brentuximab, is Seattle Geneticss first product. Sales of the medicine may surpass $275 million in 2014, according to the average estimate of three analysts surveyed by Bloomberg.

–Editors: Angela Zimm, Andrew Pollack

To contact the reporter on this story: Molly Peterson in Washington at mpeterson9@bloomberg.net

To contact the editor responsible for this story: Adriel Bettelheim at abettelheim@bloomberg.net
Business Exchange E-mail Print READER DISCUSSION

By Frederic Tomesco and Susanna Ray

Jan. 25 (Bloomberg) — Textron Inc. climbed the most in more than two years after forecasting higher 2012 profit than analysts estimated amid growing demand for Cessna aircraft and Bell helicopters.

Textron jumped 15 percent to $24.85 at 10:48 a.m. in New York trading. Earlier the stock advanced as much as 16 percent, its biggest intraday gain since July 2009. Before today, the shares had lost 20 percent of their value in the past year.

Earnings from continuing operations, excluding one-time items, will be $1.80 a share to $2 this year, the Providence, Rhode Island-based company said in a statement. The average of nine analysts estimates compiled by Bloomberg was $1.67.

Chief Executive Officer Scott Donnelly is working to leverage the companys businesses with measures such as having Cessna and Bell share overseas service centers and sales forces. Textron is winding down its finance unit, which struggled during the recession.

“The 2012 guidance is a positive surprise,” since most investors expected a forecast slightly below estimates, Julian Mitchell, a New York-based analyst with Credit Suisse Group AG, said in a note to clients. He rates the shares “neutral.”

Textron posted a fourth-quarter net loss of $19 million, or 7 cents a share, compared with profit of $60 million, or 19 cents, a year earlier.

Cessna Backlog

Excluding 55 cents a share in one-time items such as adjustments in the finance unit and a loss from convertible note repurchases, profit from continuing operations was 49 cents a share. That exceeded the 34-cent average of 14 analysts estimates compiled by Bloomberg.

At Cessna, which had to halve its workforce when sales plunged during the recession, fourth-quarter revenue increased 5.3 percent to $1.01 billion. Higher volumes of used jets, single-engine planes and Caravans made up for deliveries of Citation business jets dropping to 67 from 79, the company said. The units backlog dropped 13 percent to $1.9 billion.

“We do not see it as a good sign that the backlog was again down in what was expected to be the strongest quarter for sales,” Robert Stallard, a New York-based analyst at RBC Capital Markets, wrote in a note to clients.

Cessnas profit more than doubled to $60 million, while Bell helicopter earnings advanced 21 percent to $167 million.

Bell Deliveries

Bell delivered 62 commercial aircraft in the latest period, down from 71 a year earlier. The unit contributed about 31 percent of Textrons 2011 revenue, compared with Cessnas 27 percent. Its backlog climbed to $7.3 billion, a $981 million increase.

Revenue at Cessna will probably climb 14 percent to $3.4 billion with profit advancing 3.5 percent to 4.5 percent, Textron said today in a presentation posted on its website.

Demand for business jets “should build throughout the year,” Donnelly said. “Longer term, we expect jet growth to accelerate as the global economy stabilizes, emerging markets develop further and our new products roll into the marketplace,” he said.

Cessna may break even in the first quarter, Donnelly said. In last years first quarter, the unit had a loss of $14 million.

Textron will probably make a decision on whether to adjust production rates at Cessna in mid-2012, the CEO said. A drop in demand such as the one that occurred in 2008 and 2009 would “absolutely” trigger cutbacks, he said, though the scenario “seems fairly unlikely given where we are right now, and certainly unlikely given the level of activity we are seeing with our customers.”

Huge Investment

Cessna isnt considering building bigger business jets, Donnelly said, adding that there are better investments to be made in its line of light and midsized aircraft.

A bigger jet “would be a huge investment,” he said. “I dont think it would be the right use of our capital.”

Bell will probably record a “significant” increase in commercial helicopter deliveries this year from last years tally of 125, Donnelly said. Revenue at the unit will probably climb 19 percent to about $4.2 billion, with profit advancing 13 percent to 14 percent, Textron said.

Textron builds the V-22 Osprey plane with Boeing Co. and makes other military equipment, including drones and armored vehicles. The company Replica Watches, founded as a textile producer in 1923, also builds E-Z-GO golf carts, Greenlee tools and Kautex plastic fuel systems.

Total quarterly revenue rose 4.1 percent to $3.25 billion from $3.13 billion a year earlier, outpacing analysts estimates of $3.24 billion. Revenue in 2012 may climb to $12.5 billion from last years $11.28 billion, the company said.

Golf Mortgage

Textron may need as long as two years to sell its finance units Golf Mortgage assets, which include loans for golf courses as well as construction and refinancing of hotels, Donnelly said. The portfolio is valued at about $381 million.

“I dont think its going to be one transaction, I dont think its going to happen within six months,” he said. “Its not our objective to fire-sale these things. Its probably more like a two-year time horizon kind of a deal.”

Textron plans to boost spending on research and development by 22 percent to about $590 million, Chief Financial Officer Frank Connor said. Pension costs this year will be little changed at about $180 million.

–Editor: James Langford

To contact the reporters on this story: Frederic Tomesco in Montreal at tomesco@bloomberg.net; Susanna Ray in Seattle at sray7@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net
Business Exchange E-mail Print READER DISCUSSION

By Keith Naughton

(Updates with dealer comment in fourth paragraph.)

Jan. 17 (Bloomberg) — United Auto Workers President Bob King today endorsed proposed rules calling for automakers selling passenger vehicles in the U.S. to double average fuel economy by 2025 while a representative of an auto-dealers group objected.

“The proposed rules are sensible, achievable and needed,” King testified at a U.S. hearing in Detroit. “They are good for the auto industry and its workers, good for the broader economy, good for the environment and good for our national security.”

The U.S. National Highway Traffic Safety Administration and the Environmental Protection Agency in November released proposed rules to set fuel-economy standards for 2017 to 2025. The rules, which the agencies say they will finalize this year, would require automakers selling passenger vehicles in the U.S. to raise average fuel economy to 54.5 miles per gallon by 2025.

“Before rushing headlong into a new set of mandates doubling todays fuel economy standards, we need to know better what the ramifications will be,” testified Don Chalmers, a dealer in Rio Rancho, New Mexico, for Ford Motor Co.s namesake brand, who represented the National Automobile Dealers Association. “If the customers dont want to buy these products, we all lose.”

The rules may cost as much as $157 billion Replica Watches, the two agencies said in the draft. The standards would add an average of $2,000 to the price of each new passenger vehicle sold by 2025, the agencies said. Benefits of $419 billion to $515 billion in fuel savings would offset the costs, they estimated.

Kings View

Drivers will save an estimated $4,000 in fuel costs over the life of their vehicle, more than the costs added by the rules, King said.

“Consumers may pay a little bit more for their vehicles, but what they will save over the life of their vehicle is $4,000,” King said in a press conference following his testimony.

Building more fuel-efficient vehicles that consumers demand will lead to more auto jobs, not fewer, King said.

“The more middle-class jobs we create, the more people there are who can purchase these vehicles,” King said. “For consumers, a major issue today is fuel efficiency. Im sure this is adding a lot to our members job security.”

Lower-income buyers and those with weak credit may not be able to qualify for a loan for the higher-priced, fuel-efficient vehicles, said Chalmers, the NADA representative.

Dealer Dissent

The price premium is actually $3,200 when the fuel rules for 2016 are combined with those that would go into effect between 2017 and 2025, Chalmers said. A forthcoming NADA study will show the price of cars and trucks will actually rise by as much as $5,000 if the new rules are approved, he said.

“Our concern is for the customers and the prices they will face.” Chalmers said. The $3,200 premium “would raise payments between $60 and $70 a month on a car loan.”

The proposed rules require annual fuel-economy increases of 5 percent for cars. Pickups and sport-utility vehicles can raise fuel economy at 3.5 percent for the first five years the rule will be in effect. Then, unless regulators decide differently in a midterm review, light trucks also would have to boost fuel economy by 5 percent a year.

General Motors Co. and Toyota Motor Corp. were among automakers that agreed in July to the proposal. Volkswagen AG and Daimler AG didnt sign on.

The proposed rules provide “a regulatory framework that enables manufacturers to plan and invest for the future with confidence,” Sue Cischke, a Ford group vice president, said in prepared testimony. “The key is to ensure that the proposed targets do not outpace consumer demand, or the affordability of the technologies needed for compliance.”

Different Technologies

Consumers should decide which fuel-efficient technologies they want to adopt, testified Mitch Bainwol, president of the Alliance of Automobile Manufacturers, a Washington, D.C.-based lobbying group for major automakers, including GM, Ford, Toyota, Chrysler Group LLC and Bayerische Motoren Werke AG.

“We dont want the government to pick the solution,” Bainwol told reporters following his testimony. “Nobody has a crystal ball to say which powertrains will win.”

Beginning this year, automakers must meet higher fuel- economy standards under a rule that applies through 2016 and requires about 4 percent improvement a year.

That rule, issued in 2009 Replica Watches, requires automakers to increase average fuel economy to 35.5 mpg by 2016.

–With assistance from Angela Greiling Keane in Washington. Editors: Bill Koenig, Jamie Butters

To contact the reporter on this story: Keith Naughton in Detroit at knaughton3@bloomberg.net

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net
Business Exchange E-mail Print READER DISCUSSION

By Gordana Filipovic, Misha Savic and Sonja Elmquist

(Updates with closing share price in eighth paragraph.)

Jan. 27 (Bloomberg) — Serbia said it will buy back U.S. Steel Corp.s plant for $1, eight years after the largest American steelmaker acquired the assets.

U.S. Steel will leave no debt behind and will sign the sale agreement on Jan. 31, Prime Minister Mirko Cvetkovic said today, speaking to reporters in Belgrade.

The company is exploring all options related to its Serbian operations, Erin DiPietro, a spokeswoman for U.S. Steel, said in an e-mailed statement today. She said the company doesnt comment on other parties statements.

The Serbian unit was known as Sartid a.d. until it was acquired by Pittsburgh-based U.S. Steel from Serbia for about $23 million in a deal completed in September 2003. U.S. Steel Chief Executive Officer John Surma said on an Oct. 25 conference call that the company was not satisfied with its “poor” financial results in Serbia and was “evaluating all options to improve our situation.”

U.S. Steel said at the time of the deal Sartid could produce 2.2 million metric tons of steel annually. The plant is producing 1 million tons, Deputy Finance Minister Dusan Nikezic told reporters today.

Orphan Business

“Even in a stronger economy Replica watches, weve felt this business was an orphan business, and poorly positioned as a spot buyer of raw materials in a market competing with integrated players,” Michelle Applebaum Replica Watches, managing partner at consultant Steel Market Intelligence in Chicago, said in an e-mail today. “This transaction is a very good idea.”

U.S. Steel Serbia said in an e-mailed statement yesterday that economic conditions in southern Europe were “very difficult,” and financial results in Serbia have been “unacceptable.”

U.S. Steel rose 1.7 percent to $29.88 in New York.

“We will start looking for a new strategic partner” for the plant on Feb. 1, Cvetkovic said. The government is trying to find a “suitable buyer” and will keep the plants production level unchanged, he said.

“The existing owners had a loss of around 100 million euros ($132 million),” he said.

–Editors: Jessica Resnick-Ault, Simon Casey

To contact the reporters on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net; Sonja Elmquist in New York at selmquist1@bloomberg.net; Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net
Business Exchange E-mail Print READER DISCUSSION