Business & Finance
Ford, Motorola, and Raytheon all announced plans to raise additional cash by offering new stock shares or by upping the size of a bond sale. In a sale expected to begin Monday, Ford said it was increasing the value of its bond offering from $7.5 billion to $8.4 billion. Motorola hoped an offering of notes and purchase contracts would bring in $1.275 billion to use in cutting debt and for other corporate purposes. If there was sufficient demand, Motorola said it "may" sell another $125 million of the units. Raytheon said it would offer 29 million shares of common stock worth $1 billion for the same purposes.
Emerson Electric Co. paid $750 million for the network power-supply unit of Huawei Technologies, a Chinese tele-communications equipment company, in an unusually large acquisition by a foreign buyer. St. Louis-based Emerson, which makes electrical products, said it hopes to use Huawei's Avansys Power Co. unit in Shenzhen in southern China to grow its business in Asia. Analysts said that while other foreign buyers have acquired Chinese companies in the past, few deals have been of this magnitude.
SBC Communications, the US's second-largest local telephone company, said it would cut "several thousand" jobs and slash capital spending by 20 percent. The company also said it will slow its build-out of a high-speed Internet access network. SBC posted a slight rise in quarterly operating profits, however. They increased to $2 billion, compared with $1.96 billion a year ago. The company's headquarters are in San Antonio.
Lexmark International said it will cut up to 1,600 jobs, or 12 percent of its workforce, and take a fourth-quarter charge as part of a restructuring program. Lexmark, based in Lexington, Ky., is the US's second-largest maker of computer printers.