BUSINESS BRIEFS
Jobs cut for first time in more than 4 years
Associated Press
WASHINGTON — In a shower of pink slips, U.S. employers cut jobs last month for the first time in more than four years, the starkest signal yet that the economy is grinding to a halt if it hasn't already toppled into recession.
Conditions are deteriorating, according to the latest employment snapshot by the Labor Department, which showed nervous employers slicing payrolls by 17,000. The country hadn't seen such a nationwide job loss since 2003, when employers were still struggling to recover from the previous recession.
Job losses were widespread in January. Factories, construction companies, mortgage brokers and real-estate firms were among those eliminating jobs — casualties of the housing bust and credit crunch. The government cut jobs for the first time since last July.
EXXON MOBIL TOPS ITS PROFIT RECORD
HOUSTON — Beating its own record to rack up the largest annual corporate profit in American history, Exxon Mobil Corp. said yesterday it earned $40.6 billion for the year, reaping the benefits of crude-oil prices around $100 a barrel.
Exxon Mobil also topped its own record for profit in a single quarter, posting net income of $11.7 billion for the final three months of the year — about $1 billion more than the same period in 2005, the previous quarterly record.
Chevron Corp., No. 2 behind Exxon Mobil among U.S. oil companies, also had its best year ever in 2007, saying yesterday that it banked a profit of $18.7 billion.
OIL PRICES DOWN ON POOR ECONOMY
NEW YORK — Oil prices fell sharply yesterday, closing well under $90 a barrel after a string of dismal economic reports renewed worries that a possible U.S. recession could stunt oil demand.
Responding to recent price declines, OPEC said it will maintain current oil output levels.
Construction spending fell by a record amount, according to the Commerce Department, reflecting a sharp pullback in residential building.
ONLY GM SALES UP IN JANUARY
DETROIT — All major automakers except for General Motors Corp. saw their U.S. sales drop in January to start what industry analysts have predicted will be the worst auto sales year in the United States in more than a decade.
GM, led by strong crossover vehicle sales, reported an increase of 2.6 percent in January when compared with the same month last year.
ButToyota Motor Corp., which had seen strong growth last year, said yesterday its January light vehicle sales dropped 2.3 percent, to 171,849 in January from 175,850 in January 2007. Its performance still was strong enough to beat Ford for the No. 2 U.S. sales spot.
"All the signs tell me that this economy is going to slow down further before things start to improve," said Erich Merkle, vice president of auto industry forecasting for the consulting firm IRN Inc. in Grand Rapids.
IGER SIGNS NEW PACT WITH DISNEY
LOS ANGELES — The Walt Disney Co. said yesterday it signed Chief Executive Robert Iger to a new five-year contract that will pay him an annual salary of $2 million plus bonuses and stock awards that could be worth millions more.
Iger could receive an annual incentive bonus of $10 million or more, along with an annual long-term incentive compensation equity award valued at $9 million or more, if Disney meets certain performance goals, according a Securities and Exchange Commission filing.
Iger's previous contract included an annual performance bonus beginning at $7.25 million and annual long-term incentive compensation starting at $8 million.
Iger's previous contract was set to expire Sept. 30, 2010. His new contract runs through Jan. 31, 2013.
Disney shares rose 82 cents, or 2.7 percent, to $30.66
