Here is a look at more of Friday's top business stories:
Earnings at Fedders fall, cuts jobs
LIBERTY CORNER, N.J., Oct. 12 (UPI) -- Air treatment products maker Fedders Corp. said its third quarter net income dropped nearly 60 percent and also announced plans to cut 800 jobs in the United States by moving some production to Asia.
Fedders said its net income fell to $6.9 million, or 22 cents a diluted share, from $16.9 million, or 47 cents a share during the same period last year.
Sales declined to $186.7 million from $195.2 million a year ago as a result of decreased demand for room air conditioners following the cool summer of 2000.
The company said it will significantly increase production of room air conditioners in China and also move assembly of all dehumidifiers, rotary compressors, appliance air cleaners, and electronic power supplies used in residential air cleaners from the United States to Asia.
Fedders said it will maintain manufacturing capabilities for room air conditioners in the United States.
However, production at plants in Tennessee, North Carolina and Illinois will be curtailed and production at a plant in Maryland will end.
The changes in production will result in a combined elimination of about 800 positions in the United States, Fedders said.
The company also is expected to take a charge of approximately $18 million to $22 million primarily in the fourth quarter for fixed asset write-offs relating to the discontinued operations, inventory write-downs and employee costs.
Xerox expects wider loss
STAMFORD, Conn., Oct. 12 (UPI) -- Xerox Corp. said it expects a wider-than-expected third-quarter loss and was cautiously optimistic about fourth quarter profitability, citing currency losses and an insurance deductible related to the attacks on the United States.
Xerox said it expects third quarter revenues of $3.8 billion to $4 billion and expects to post a loss of 22 cents to 25 cents a share before restructuring charges of 5 cents a share.
Analysts on Wall Street were expecting the company to post a third quarter loss of 12 cents a share and revenues of $3.94 billion, according to Thomson Financial/First Call.
Xerox cited several factors for the shortfall, including a reduction of about 9 cents due to currency losses from unhedged exposures, a tax rate change, and a property insurance deductible related to losses from the Sept. 11 attacks on the World Trade Center and the Pentagon.
"In many regards, Xerox's performance in July and August exceeded expectations and we were well positioned to meet our third-quarter targets," said Anne Mulcahy, president and chief executive officer.
"However, the events of Sept. 11 resulted in a significant impact on sales for the balance of the month -- typically the strongest two weeks of the quarter," Mulcahy said.
She added that Xerox remains cautiously optimistic about fourth-quarter operating profitability given further progress in the company's cost-cutting efforts.
The company will report its earnings results on Oct. 23.
Lowe's Cos. sees results in line with expectations
WILKESBORO, N.C., Oct. 12 (UPI) -- Home improvement retailer Lowe's Cos. Inc. said its third quarter earnings will be in line with Wall Street forecasts.
Lowe's said it expects to post a third quarter net income between 30 to 32 cents a share.
Analysts on Wall Street had expected the company to post a net income of 31 cents a share, according to Thomson Financial/First Call.
The retailer also repeated its forecast for same-store sales growth of 2 percent to 4 percent in the third quarter.
"On Tuesday, September 11, following the tragic events in New York, Washington and western Pennsylvania, we experienced a significant decline in comparable store sales," said Robert Niblock, Lowe's senior vice president and CFO.
"However, in the days following the attack we saw continued improvement in customer traffic and sales," he added.
Lowe's will report its earnings results on Nov. 19.
