Here is a look at more of Monday's top business stories:
British Air, Air France resume Concorde service to NY
NEW YORK, Oct. 15 (UPI) -- British Airways and Air France have pledged their support for New York with the announcement that Concorde flights will resume across the Atlantic Nov. 7.
Rod Eddington, British Airways' chief executive, said, "We are delighted to be returning Concorde to the skies and back into New York. We hope Concorde's return will play a major part in rebuilding confidence in New York and demonstrating that it is business as usual between the United Kingdom and the United States.
We have received tremendous support from our regular business customers over the last year and we look forward to carrying them supersonically across the Atlantic once more," Eddington said.
New York Mayor Rudolph Giuliani welcomed the announcement and said, "Concorde's return is symbolic of how all New Yorkers feel about rebuilding this great city. I am personally proud to welcome Concorde back to New York."
The British carrier will begin operations with an initial six times a week service between London Heathrow and New York JFK.
Flight BA001 will depart six times each week from London Heathrow at 10:30 a.m. local time and arrive in New York at 9:25 a.m. local time.
The return flight, BA002, will depart New York at 12:15 p.m. local time and arrive at Heathrow at 9.10 p.m. Flights to and from New York will operate on every day except Saturday.
From Dec. 1 until April 13, 2002, the airline will operate a once a week scheduled Barbados service from Heathrow, departing Saturdays at 9:30 a.m. and arriving in Barbados at 9:45 a.m. The return will depart Barbados on Saturdays at 11:45 a.m. and arrive at Heathrow at 8 p.m.
Meanwhile, Air France also announced it will resume Concorde service on Nov. 7.
"Concorde's return to service attests to our confidence in the future of Air France and in the future of the aviation industry. Throughout the world, this industry has been severely affected by the tragic events of Sept. 11 and their repercussions," said Jean-Cyril Spinetta, Air France Chairman.
"Concorde's return to New York is symbolic of Air France's tribute to the people of this city, to their strength and their strong resolve to rebuild," Spinetta added.
"Within our own ranks, we have not forgotten the show of sympathy and support of many New Yorkers in the hours and days following the Concorde accident on July 25, 2000."
Starting on Nov. 7, Air France Concorde will begin service from Paris to New York, marking the relaunch of supersonic travel on this route, with five weekly flights on Monday, Wednesday, Thursday, Friday and Sunday.
The new schedule offers greater convenience for passengers, with a departure from Paris-Charles de Gaulle Airport at 10:30 a.m. (replacing the previous departure at 11 a.m.), and arrival at John F. Kennedy International Airport at 8:25 a.m. local time.
This early morning arrival offers passengers numerous connections throughout North and South America, and minimizes waiting time at Customs and immigration.
On departure from New York to Paris, the Concorde will take off at 8 a.m., arriving at Paris-CDG at 5:45 p.m., thereby offering passengers 80 possible connections to major French and European cities via the Air France hub.
The Concorde, long a symbol of high-class luxury travel, has been grounded since August of last year shortly after an Air France Concorde burst into flames just after take-off from Paris Charles de Gaulle airport bound for New York.
All 109 people on board and four on the ground were killed in the crash on July 25, 2000, the first of a Concorde.
Investigators say one of the plane's tires exploded after running over a strip of metal on the runway, sending debris flying into the fuel tanks, which then ruptured.
British and French regulators restored the plane's right to fly in September subject to implementation of a series of safety modifications intended to prevent a recurrence of the chain of events that led to the disaster.
Modifications to the Concordes have included lining the fuel tanks with a coating of bullet-proof Kevlar and the development of tougher, more puncture resistant tires.
The jets, which entered service in 1976, can fly travelers across the Atlantic in 3 1/2 hours, around half the time it takes to fly from London or Paris to New York in a subsonic airliner.
Earnings fall 39 percent at Eaton Corp.
CLEVELAND, Oct. 15 (UPI) -- Diversified industrial manufacturer Eaton Corp., citing the slow economy, said its third quarter operating income from continuing operations 39 percent to $47 million, or 66 cents a share, from $77 million, or $1.07 a share during the same period last year.
Analyst on Wall Street had expected the company to post a net income of 63 cents a share, according to Thomson Financial/First Call.
Eaton, which makes fluid power systems, automotive and truck components, and commercial and industrial controls, said its revenue declined 13 percent to $1.75 billion from $2.19 billion a year ago
During the quarter, the company recognized pre-tax charges of $33 million related to the restructuring of its operations. It also realized a gain of $23 million from the sale of non-core businesses. After all unusual items in both periods, third quarter net income was $40 million compared to $69 million one year ago.
Alexander M. Cutler, chairman and chief executive officer, said, "Eaton's third quarter earnings came in about where we expected in the wake of the Sept. 11, 2001 terrorist attack on our nation. While it is still early to accurately assess the full impact of that tragedy on the United States and world economy, we remain comfortable with the guidance we provided earlier for Eaton's fourth quarter 2001 and full year 2002 prospects.
"The rough parallel to the current situation that we have found helpful is the Gulf War of 1990 -- 1991. If the analogy holds, the overall U.S. economy will decline again in the fourth quarter and then should begin to regain its bearings sometime next spring, with a recovery that is aided by the full impact of a year's monetary easing, low inflation, tax cuts and additional fiscal stimulus," Cutler said.
"International markets are trailing the U.S. economy with the normal 6-month lag, and are expected to continue weakening throughout the next year.
"We expect Eaton's markets will be down again this quarter and remain below year-ago levels until the second half of 2002. The eventual market rebound will be first reflected in our Truck and Automotive segments, with the turnaround in our Fluid Power and Industrial and Commercial Controls segments not anticipated before year-end," Cutler said.
Earnings decline at Gannett
ARLINGTON, Va., Oct. 15 (UPI) -- Gannett Co. Inc., owner of USA Today and 96 other newspapers, said its third quarter net income declined 16 percent to $174.8 million, or 66 cents a share, from $208.3 million, or 79 cents a share during the same period last year.
Analysts on Wall Street had expected the company to post a net income of 64 cents a share, according to Thomson Financial/First Call.
Gannett warned last month that its third quarter earnings could fall as much as 15 percent to 20 percent below those of last year.
Revenues declined 2.6 percent to $1.52 billion from $1.56 billion a year ago.
Assuming the same portfolio of assets in both 2001 and 2000, the company said its revenues would have declined 7 percent.
Fitch lowers rating outlook on 3 brokerage firms
CHICAGO, Oct. 15 (UPI) -- Fitch said it has lowered the rating outlook for the long-term debt ratings of Charles Schwab Inc., Merrill Lynch & Co. and Morgan Stanley Dean Witter & Co. from stable to negative.
Fitch also downgraded the individual ratings of Merrill Lynch and Morgan Stanley from A/B to B. Schwab's individual rating is B/C.
Fitch said it believes that the difficult operating environment faced by the securities industry in fiscal year 2001 will be lengthened and potentially more severe following the events of Sept. 11.
"Profitability is anticipated to further decline as revenues are highly dependent on equity trading volume, equity and debt issuance and underwriting as well as asset management levels which often determine fees," Fitch said.
"The robust business environment of 1999 and 2000 resulted in material expansion of resources in this industry. Thus, firms will be challenged to readjust expenses, balancing compensation and staffing levels relative to business opportunities. Fitch also believes the financial services competitive environment will remain resilient following consolidation and expansion of commercial banking powers. The change in rating outlook reflects a combination of these factors with some unique challenges at each of these firms," the rating agency said.
Fitch said Charles Schwab's ratings are based on its conservative financial profile and the strength of its retail franchise. Its franchise successfully altered the retail distribution platforms of the industry. Its operating environment however, has come under significant stress following an over expansion to accommodate unsustainable volumes.
"While management has already taken action to reduce operating levels by 25 percent since the first of the year, management will be further challenged in addressing profitability as it scales operations to fluctuating volumes. While some diversification was achieved in its purchase of U.S. Trust, revenues remain largely dependent upon the securities operating platform," Fitch said.
The rating agency said Merrill Lynch's ratings are based on its strong global franchise, however global expansion has pressured operating profit margins lagging peer performance.
"Despite efforts at improving efficiencies, Fitch believes that an expected decline in overall business will result in additional earnings pressures. While it has executed select restructuring efforts, Merrill Lynch will be further challenged to right-size both its institutional and retail businesses in a difficult environment," the rating agency said.
Fitch said Morgan Stanley has historically managed its balance sheet with conservative leverage and tangible equity ratios.
"We believe that current exposures to economic reverberations may erode some of its conservatism particularly given its retail credit card risk and its exposure to aircraft finance," the rating agency said.
Fitch added that further actions will be dependent upon the economic and business environment and material changes in financial or operating leverage.
