LOCAL BUSINESS
B&W wins federal contract
Babcock & Wilcox Co. is getting $79 million from the federal government this year to continue developing its small modular nuclear reactor, called mPower.
B&W’s mPower subsidiary could get an additional $226 million over five years in federal funding as well, the Charlotte, N.C.-based company said. (B&W has a campus with about 2,000 employees in Barberton for its largely coal-related Power Generation Group.)
The $79 million available this year comes from an agreement with the U.S. Department of Energy.
B&W is looking to build its first small modular reactors for the Tennessee Valley Authority’s Clinch River site. Each mPower reactor is designed to generate 180 megawatts of electricity.
ECONOMY
Factory output rises in March
Industrial production rose in March as auto plants cranked out more cars and cold weather kept utilities busy generating heat. The Federal Reserve said output at the nation’s factories, mines and utilities rose 0.4 percent in March from February. Production of autos and auto parts surged for the second straight month. Utility output rose 5.3 percent.
Overall factory production slipped 0.1 percent, dragged down by falling metal production.
Car sales have risen steadily this year after reaching a five-year high in 2012.
Still, recent reports from the nation’s factories have been disappointing. The Federal Reserve Bank of New York reported Monday that manufacturing growth in the New York slowed this month. And a private survey showed manufacturing nationwide expanded more slowly in March than it did in February.
New home numbers increase
New home construction jumped more than forecast in March as multifamily projects climbed to the highest level in more than seven years.
Starts climbed 7 percent to a 1.04 million annual rate, the most since June 2008, following a revised 968,000 annual rate in February that was larger than previously reported, Commerce Department figures showed. The median estimate of 80 economists surveyed by Bloomberg called for 930,000. Building permits, a proxy for future construction, fell.
Dow Jones surges 157 points
The Dow Jones industrial average recouped a large chunk of its 265-point loss from Monday, rising 157.58 points in Tuesday trading to 14,756.78 for its best session in nearly seven weeks.
The S&P 500 index added 22.21 points to 1,574.57. The Nasdaq composite rose 48.14 points to 3,264.63.
RETAIL
Target lowers profit forecast
Target Corp., the second-largest discount retailer, said first-quarter profit will be less than it previously expected as cold weather hampered sales of spring merchandise.
Adjusted profit in the current quarter will be less than the low end of its forecast range of $1.10 to $1.20 a share, the Minneapolis company said. The average of 10 analysts’ estimates compiled by Bloomberg was $1.11 a share when the statement was released.
Target, already struggling with a weaker consumer-spending environment that’s taking a toll on retailers, has been facing colder-than-normal temperatures that are hurting sales of spring merchandise. The retailer won’t be the last to be hit by the combination of the unsteady economy and the cooler weather, said Ken Perkins, president of researcher Retail Metrics.
Target maintained its forecast for full-year profit of $4.85 to $5.05 a share.
AUTO INDUSTRY
GM, Volkswagen trail Toyota
General Motors edged out fast-growing Volkswagen in first-quarter sales as both companies try to close the gap with Toyota for the global world sales crown. Toyota dethroned GM to retake the top spot in 2012, a year in which VW posted record sales and came within 190,000 vehicles of beating GM.
GM said Tuesday that it sold 2.36 million cars and trucks from January through March, an increase of 3.6 percent over the first quarter of last year. VW global sales rose 5 percent to 2.27 million vehicles.
GM’s growth was led by Cadillac, with sales worldwide up 26 percent. Chevrolet, which makes up 73 percent of company sales, grew just under 1 percent over last year’s record numbers.
Sales growth exceeded the 1.5 percent growth in total worldwide auto sales, according to GM.
Last year Toyota sold 9.7 million cars and trucks worldwide to beat GM’s 9.29 million. VW, riding strong growth in North America and China, finished a close third, selling a record 9.1 million vehicles.
Compiled from staff and wire reports