LOCAL BUSINESS
Moody’s alters Timken ratings
Moody’s Investors Service revised its ratings outlook for the Timken Co., following its plans to spin off its steel business, to negative from stable while also affirming the company’s Baa2 credit rating. The change affects about $425 million in debt.
The remaining Timken bearings and power transmission business will be a smaller, less diversified company but may also be more stable once the more volatile steel business becomes publicly traded, Moody’s said. Timken, headquartered in Canton, has strong liquidity and a modest amount of debt, Moody’s said.
The outlook reflects the impending departure of key personnel, possible modestly lower liquidity and short-term lackluster prospects, Moody’s said.
food
McDonald’s revenue increases
McDonald’s Corp. said a key revenue figure rose 1.9 percent in August, driven by a strong performance in Europe. Its Monopoly promotion in the United States helped lift its performance there.
The world’s biggest hamburger chain reported the gain in revenue at restaurants open at least 13 months for the period ended Aug. 31. That includes a 3.3 percent increase in Europe, a 0.2 percent rise in the U.S. and a 0.5 percent decline in Asia Pacific.
PHONES
Walmart allows trade-ins
Wal-Mart Stores Inc. said it will allow customers to trade in their smartphones for credit toward new ones.
The chain will offer a $300 credit for Apple iPhone 5 handsets and $175 for Samsung Galaxy SIII phones, among other deals. The program will start Sept. 21.
JOB MARKET
U.S. employment data mixed
Employers advertised fewer jobs in July but hired more workers, a mixed sign that suggests only modest improvement in the job market. Job openings fell 180,000 in July to 3.7 million, the Labor Department said. That’s down from 3.9 million the previous month, which was revised lower.
AUTO INDUSTRY
Tech partnership planned
Continental AG, Europe’s second-largest auto-parts maker that includes tire operations, is teaming with International Business Machines Corp. to develop technology for cars. Continental and IBM agreed to create a multimedia platform that controls functions such as mobility and navigation.
ELECTRONICS
PlayStation 4 release set
Sony said it will release the PlayStation 4 console in Japan three months after it reaches shelves in North America, as the company seeks to avoid shortages that hurt sales of its predecessor. The timing will allow Sony to focus on meeting demand in its biggest sales markets for the peak holiday shopping season.
The machine will be released on Feb. 22 in Japan, compared with Nov. 15 in North America and Nov. 29 in Europe. Sony’s machine will reach 32 markets this year. The PS4 has a U.S. retail price of $399, and is a key to Sony’s revival strategy.
Tablets available at toy store
Toys R Us Inc. is making a bigger bet on kid-focused tablets as Amazon.com Inc. and Samsung Electronics Co. target families. The world’s largest toy chain will release the second version of its tabeo tablet early next month. The first edition, built on Google’s Android operating system, sold out last year, so the company has boosted production and marketing for the tabeo e2.
BENEFITS
IBM changes retiree plans
International Business Machines Corp., which is moving benefits for Medicare-eligible retirees to a private health exchange, said its contribution to their health care would be “consistent” with previous years.
The company moved 110,000 retirees to an Extend Health exchange by Towers Watson, the country’s largest private Medicare exchange. IBM told former employees they will be able to keep their current health providers and prescriptions in most cases.
WALL STREET
Dow Jones gains 127 points
The Dow Jones industrial average rose 127.94 points, or 0.9 percent, to close at 15,191.06. The Standard & Poor’s 500 index rose 12.28 points, or 0.73 percent, to 1,683.99 and the Nasdaq composite rose 22.84 points, or 0.62 percent, to 3,729.02. Crude oil, which closed above $110 a barrel on Friday, lost $2.13, almost 2 percent, to close at $107.39.
Compiled from staff and wire reports