LOCAL BUSINESS
Meggitt revenue increases
Meggitt PLC, the U.K.-based defense contractor and engineering company that owns Meggitt Aircraft Braking Systems in Akron, reported higher revenue and earnings for the six months ending June 30.
Meggitt reported revenue rose 4 percent from a year ago to $1.2 billion. Earnings per share rose 9 percent to 27.8 cents. “The business delivered top line growth in line with our expectations in the first half,” Steve Young, chief executive, said in a news release.
Revenue for Meggitt Aircraft Braking Systems rose 7 percent the first six months of the year to $244.5 million compared with $228.2 million for the same period in 2012. Military growth was driven in large part by strong F-16 jet and Chinook helicopter demand. The medium-term prospects for the business jet aftermarket remain strong, the company said.
Mattress company to expand
Mattress Firm Inc., a national specialty mattress retail chain, is expanding into the state with seven locations in Northeast Ohio, including one in Massillon and two in Canton.
The Houston retailer sells mattresses from Sealy, Serta and Simmons at more than 1,000 stores in 28 states. The firm said in a news release Tuesday that is expects to hire 15 to 20 sales associates, store management and warehouse personnel for the seven new Northeast Ohio locations. The stores are expected to open by mid-November.
EARNINGS
CVS reports higher earnings
CVS Caremark Corp.’s second-quarter earnings jumped 16 percent, as the drugstore operator and pharmacy benefits manager continued to reap gains from generic drugs.
But the Woonsocket, R.I., company with Northeast Ohio operations dropped the top end of its 2013 earnings forecast a penny below the Wall Street consensus due to a delay in share buybacks, which can boost earnings per share by lowering the share count. CVS Caremark now expects 2013 adjusted earnings of $3.90 to $3.96 per share compared with its previous forecast for $3.89 to $4 per share. Analysts expect $3.97 per share, on average, according to research firm FactSet.
BMO Capital Markets analyst Jennifer Lynch called the new guidance “mildly disappointing.”
CVS Caremark earned $1.12 billion, or 91 cents per share. That compares with net income of $966 million, or 75 cents per share, a year ago. Adjusted earnings totaled 97 cents per share, a penny higher than average analyst expectations.
Revenue rose about 2 percent to $31.25 billion, while analysts expected $31.14 billion.
Walt Disney’s income rises
Walt Disney Co. reported net income rose to $1.85 billion from $1.83 billion a year earlier. Earnings per share were flat at $1.01, Burbank, Calif.-based Disney said. Profit came to $1.03 excluding items, compared with the $1.01 average of 30 analysts’ estimates compiled by Bloomberg.
Disney expects to record a loss of as much as $190 million on The Lone Ranger, which cost $225 million to make and has produced less in worldwide ticket sales.
FAST FOOD
Taco Bell to expand breakfast
Taco Bell says it’s expanding its small test of waffle tacos, as it prepares to take its breakfast menu national sometime next year. The fast-food chain says the waffle taco, which includes scrambled eggs, sausage and a side of syrup, was the top seller at the five restaurants where they were tested earlier this year.
Now the company wants to see how it would fare on a bigger scale. The waffle tacos and a full breakfast menu will be expanded to about 100 restaurants in Fresno, Calif.; Omaha, Neb.; and Chattanooga, Tenn., starting Thursday.
Taco Bell already offers breakfast at about 850 locations in 10 Western states, and has been tinkering with new items such as the waffle taco before rolling it out to its 6,000 U.S. locations.
AUTO INDUSTRY
Chrysler model on schedule
Chrysler’s manufacturing chief says the company’s next new model should come out without the delays that have hampered three recent product launches. Vice President Mauro Pino says a new midsize car that will replace the Chrysler 200 is on schedule to hit dealerships before April 1.
He says Chrysler learned a lot from previous models to avoid manufacturing delays. CEO Sergio Marchionne said last week that delays in new versions of the Ram pickup and Jeep Grand Cherokee contributed to a 65 percent profit drop last quarter. Chrysler is expected to produce 2.5 million cars this year, up from 900,000 three years ago. Pino says the company’s quality has improved, even though it had to train 10,000 new U.S. factory workers hired in the last three years.
Compiled from staff and wire reports