IN BRIEF
TRENTON, N.J. — The pain of the recession is easing just a bit for Tylenol and Band-Aid maker Johnson & Johnson, which Tuesday reported a healthy jump in fourth-quarter sales. But J&J still posted its first yearly decline in sales since the Depression, gave a disappointing 2010 profit forecast and saw its stock price fall as a result.
Profit for the October-December quarter also was down, due to sharply lower U.S. sales of some high-margin prescription drugs and a whopping charge — $1.1 billion before taxes — for its biggest restructuring ever. That program will eliminate up to 8,000 jobs, or nearly 7 percent of the New Brunswick, N.J., company's work force.
The world's largest maker of health care products said sales rose 9 percent to $16.55 billion, mainly because of new products and a boost of 4.5 percent from favorable currency exchange rates. But profit dropped 19 percent to $2.21 billion, or 79 cents per share — $1.02 excluding one-time items.
PEORIA, Ill. — Caterpillar, the world's biggest mining and construction equipment company, said fourth-quarter profit was dragged down by the sluggish economy, though it expects 2010 sales and revenues to grow as much as 25 percent.The company said today it is seeing growth in China and other developing countries even as North America, Europe and Japan rebound more slowly.Earnings slid 65 percent to $232 million, or 36 cents per share. Removing redundancy costs, profit was 41 cents per share, beating analysts' 28-cents-per-share estimate.Revenue fell 39 percent to $7.9 billion.Shares fell slightly in premarket trading.Caterpillar's results are considered an indicator of global economic health because of its broad reach and diverse product line.
ATLANTA — Delta Air Lines' corporate travel demand is picking up, its trans-Atlantic business has rebounded and it is holding its own in Asia as it closes the books on a turbulent 2009.The world's biggest airline Tuesday posted a $25 million loss for the final three months of the year. That's an improvement from the $1.4 billion loss it posted a year earlier.Delta hopes for a boost in 2010 from the economic recovery, as it looks to expand its presence in New York and Asia. Delta expects a government decision by early February on a deal between it and US Airways to swap some takeoff and landing slots involving New York's LaGuardia Airport. Delta also wants to bring Japan Airlines into its SkyTeam alliance. Delta wouldn't say when it expects to hear if JAL plans to dump its alliance with American Airlines and join SkyTeam.Delta and others cut flights and unprofitable routes last year, but still struggled as fewer business travelers took to the skies.