LOCAL BUSINESS
Parker makes acquisition
Parker Hannifin Corp., which makes industrial hoses, airplane wheels and other products, said Wednesday it will buy Sea Recovery from Denmark’s Danfoss A/S. Terms were not disclosed. Cleveland-based Parker Hannifin will assume ownership of the business on Nov. 1.
Compton, Calif.-based Sea Recovery, which will become a part of Parker’s filtration group, makes reverse osmosis systems that turn sea water into fresh water for both commercial and pleasure marine uses.
The company’s sales for the 12 months ended Aug. 31 totaled about $26 million and it has 70 employees.
FINANCE
Verizon sheds obligation
Verizon Communications Inc. said it will transfer $7.5 billion of its pension plan obligations to the Prudential Insurance Company of America.
The communications company will buy a group annuity contract from Prudential, and Prudential will assume responsibility for making payments to the roughly 41,000 management retirees under the plan.
The companies said the move will transfer payment responsibilities to Prudential and lower Verizon’s overall pension risk.
Verizon says the deal will not affect the payments made to members of its U.S. management pension plan. The deal settles only a portion of the company’s $30 billion in outstanding pension obligations.
AIRLINES
American to hire 1,500
Wanted: A few good recruits to serve coffee and help combat terrorism at 30,000 feet.
American Airlines said it will post job openings for 1,500 flight attendants next month. It will start hiring in December and put the new staff in training beginning in January.
That might seem strange for a company trying to cut labor costs under bankruptcy protection. But the airline needs to replace some of the 2,205 flight attendants that have accepted a $40,000 buyout to leave the company — the equivalent of about a year’s salary. It’s the first time the company has hired flight attendants in 11 years.
The departing attendants all started working before the Sept. 11 terrorist attacks that included the crashes of two American Airlines jets. Since then, they’ve seen their company lose more than $10 billion. In 2003 workers accepted pay cuts to keep American out of bankruptcy, then were outraged to discover that hundreds of management employees have received bonuses. The flight attendants’ final departures will be staggered over the next year.
The job they’re leaving has lost the allure it had back when passengers flew in their Sunday best and received free meals in coach. It often involves long hours and responsibilities ranging from basic hosting duties to medical interventions — and even terrorism prevention.
EARNINGS
American Express sees gains
American Express reported net income of $1.25 billion, or $1.09 per share, for the three months ended Sept. 30. That compares with net income of $1.24 billion, or $1.03 per share, in the same period last year. Revenue rose 4 percent to $7.86 billion from $7.57 billion.
Analysts polled by FactSet were expecting earnings of $1.09 per share on revenue of $7.9 billion.
American Express shares closed up 74 cents at $59.37. The stock is up 25 percent over the past year.
eBay’s income rises
eBay said its third-quarter net income grew 22 percent, helped by higher revenue at its PayPal payments service and the marketplaces business that includes eBay.com.
eBay Inc. said it earned $597 million, or 45 cents per share, in the July-September period. That’s up from $491 million, or 37 cents per share, a year earlier.
The company says revenue grew 15 percent to $3.4 billion from $2.97 billion.
Adjusted earnings were 55 cents per share in the latest quarter, slightly ahead of Wall Street’s expectations.
Analysts surveyed by FactSet were expecting earnings of 54 cents per share on revenue of $3.41 billion.
TECHNOLOGY
Best Buy offers tablet
Best Buy Co., the world’s largest electronics retailer, will introduce a tablet computer to compete against Amazon.com Inc.’s Kindle and Apple Inc.’s iPad.
The Insignia Flex, which uses Google Inc.’s Android operating system, will go on sale in Best Buy stores Nov. 11, the Richfield, Minn.-based retailer said.
The tablet will have a 9.7-inch screen and cost about $250, according to the company.
Compiled from staff and wire reports.