Business news in brief

— QUOTE OF THE DAY “Sales came late in the holiday shopping

season and, as a result, were at deeper discounts than planned.” Kevin Mansell, Kohl’s Corp. chief executive officer and chairman Article, 1D

Boeing deliveries most since 1999

Boeing Co. said Thursday that it delivered 601 planes last year, putting it on track to beat European rival Airbus as the top plane maker for the year.

Airbus has beaten Boeing in deliveries in recent years, but Boeing is now cranking out its new 787 and a revamped 747 after delays for both aircraft. Its delivery total was the most since 1999 - the height of an Internet-driven boom and a time when airlines were relatively flush with cash. The following decade brought two U.S.

recessions and airline bankruptcies.

Boeing also said it booked orders for 1,203 commercial jets - its second biggest order year in the company’s history. The big driver for 2012 orders was its plan to put new, more fuel-efficient engines on its workhorse 737. The plane has been a strong seller, and Boeing booked orders for 1,124 last year. Boeing is still making the current version of the plane and aims to begin delivering the Max in 2017. The Max was a response to Airbus’ A320neo, for “new engine option,” which boosted Airbus orders in 2011.

Airbus has not reported full-year orders and deliveries yet. Through November, it had booked orders for 585 planes and delivered 516.

  • The Associated Press

30-year mortgage rate falls in U.S.

WASHINGTON - Average U.S. rates on fixed mortgages moved closer to their record lows this week, a trend that has made home buying more affordable and helped sustain a housing recovery.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan slipped to 3.34 percent from 3.35 percent last week. That’s near the 3.31 percent rate reached in November, the lowest on records dating to 1971.

The average on the 15-year fixed mortgage ticked down to 2.64 percent from 2.65 percent last week. The record low is 2.63 percent.

The 30-year fixed mortgage rate averaged 3.66 percent in 2012, the lowest annual average in 65 years, according to Freddie Mac.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30-year loans was 0.7 point, unchanged from last week. The fee for 15-year loans edged down to 0.6 from 0.7 point.

The average rate on a one-year adjustable-rate mortgage rose to 2.57 percent from 2.56 percent. The fee for one-year adjustable-rate loans dipped to 0.4 from 0.5 point.

  • The Associated Press

Judge: Workers can sue GM, union

TOLEDO, Ohio - A federal judge says General Motors workers in northeast Ohio can move forward with a lawsuit against the automaker and the United Auto Workers.

The union’s request to dismiss the lawsuit was turned down late last week.

Nearly 30 workers at GM’s Lordstown factory say they were improperly classified as temporary employees after losing their jobs and then being rehired.

They say the change in classification cut their pay by more than 40 percent and they are seeking back pay of $3 million to $4 million.

A local union official at the Lordstown plant where GM makes the Chevrolet Cruze has said that the workers weren’t misrepresented.

Both the union and the company have denied the allegations in court documents.

  • The Associated PressBank exits; Vatican visitors need cash

VATICAN CITY - It’s “cash only” now for tourists at the Vatican wanting to pay for museum tickets, souvenirs and other services after Italy’s central bank decided to block electronic payments, including credit cards, at the tiny city-state.

Deutsche Bank Italia, which for some 15 years had provided the Vatican with electronic payment services, said Thursday that the Bank of Italy had pulled its authorization after Monday.

The Corriere della Sera newspaper reported that the Italian central bank took the action because the Holy See has not yet fully complied with European Union safeguards against money laundering. That means Italian banks are not authorized to operate within the Vatican, which is in the process of improving its mechanisms to combat laundering.

The Vatican says it is scrambling to solve the problem for thousands of visitors to the Vatican Museums. The Holy See had no immediate comment on the Bank of Italy’s reported reasons.

The museums, with their entrance fees and popular souvenir shops, are a big money-maker for the Vatican.

Other Vatican attractions, such as tours of the Vatican’s ancient underground spaces, also charge admission.

  • The Associated Press

Subaru letter goes to 634,000 buyers

DETROIT - Subaru is notifying nearly 634,000 car and SUV owners in the U.S. that lights beneath the doors of some vehicles can overheat and catch fire.

The recall affects all Outback and Legacy cars from model years 2010 and 2011. Also included are Tribeca SUVs from 2006 through 2012 and Forester SUVs from 2009 through 2012. Subaru said the Tribecas and Foresters were sold before January 2012.

The company said moisture can get into puddle lights beneath the doors and cause a short circuit that can melt plastic and cause fires. It says only 54,000 of the vehicles are equipped with the lights and will need to be repaired.

But it will send letters to all owners asking them to take their cars to dealers if they have the lights.

Subaru said Thursday that there have been no crashes or fires because of the problem. The company found the problem after getting complaints about smoke coming from the lights on a small number of vehicles.

The National Highway Traffic Safety Administration said on its website that Subaru will install an additional fuse at no cost to the owners. The recall is expected to begin in February.

Business, Pages 24 on 01/04/2013

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