Here is a look at more of Tuesday's top business stories:
McDonald's lowers outlook
OAK BROOK, Ill., Dec. 17 (UPI) -- Fast-food giant McDonald's Corp. said its fourth-quarter earnings would be below Wall Street's estimates before restructuring charges.
McDonald's said it expects to record pretax charges of approximately $435 million, or $390 million after tax, or 31 cents a share, in conjunction with plans announced last month to restructure certain markets, close under-performing restaurants and eliminate positions to control costs and reallocate resources.
Including the $435 million of charges, the company expects a fourth-quarter loss per share of 5 to 6 cents.
Also, as a result of recently announced management changes, the company said it will review additional areas to sharpen its focus and improve results. This review could result in additional fourth-quarter charges.
Excluding charges, the company expects to post a fourth-quarter net income per share of 25 to 26 cents, including a foreign currency benefit of 1 to 2 cents.
Analysts on Wall Street had expected McDonald's to earn 31 cents a share in the fourth quarter, according to Thomson First Call.
The company also reported system-wide sales for the first 11 months of the year rose 2 percent in constant currencies to $37.9 billion.
European system-wide sales rose 6 percent for the first 11 months while system-wide sales in its Asia/Pacific/Middle East/Africa segment declined 3 percent for the first 11 months.
On Dec. 5, McDonald's announced that Jack M. Greenberg would retire as Chairman and chief executive officer effective Dec. 31 and that Jim Cantalupo, formerly vice chairman and president, would succeed him.
The company said Cantalupo is aggressively reviewing all aspects of the business and will discuss his views and near-term priorities in January.
Matthew Paull, executive vice president and chief financial officer, noted, "This has been a difficult year and our financial performance has been below expectations. Under the leadership of Jim Cantalupo, I am confident we will improve our business, building on our strengths including our brand recognition, our position as the world's leading foodservice retailer, and our annual System-wide sales of $40 billion and annual revenues of $15 billion."
McDonald's operates more than 30,000 restaurants in more than 100 countries.
GE expects to raise $5 to $10 billion from asset sales
FAIRFIELD, Conn., Dec. 17 (UPI) -- General Electric Co. said it expects to raise between $5 billion and $10 billion from asset sales next year as it tries to move out of slower growing businesses.
The company also left its earnings targets for 2002 and 2003 steady.
Jeffrey Immelt, chief executive officer, said the company was shifting its portfolio of industrial companies toward technology and services, and its financial companies more toward the commercial and consumer finance businesses.
GE expects to raise between $1 billion and $5 billion from industrial sales, and between $5 billion and $10 billion from sales of financial companies, according to an online slide show presented to investors by Immelt. Between $5 billion and $10 billion will be raised in 2003, he said.
Immelt repeated that GE was looking to sell the life reinsurance business of its Employers Re unit. It was still considering whether to sell the property casualty reinsurance business of Employers Re, he added.
GE, which makes everything from jet engines to appliances, said it expects to earn $1.51 a share this year, or 7 percent more than 2001. That matches the consensus forecasts among Wall Street analysts, according to Thomson First Call.
For 2003, GE expects earnings of $1.55 to $1.70 and revenue of $133 billion. The company expects the current business environment to continue into next year, according to the presentation.
On Nov. 21, GE lowered its 2002 earnings target to $1.51 a share including a $1.4 billion charge related to increased reserves at its Employers Reinsurance Corporation unit. Excluding the charge the company sees earnings of $1.65 a share.
