Business Briefs
Business Briefs

WASHINGTON — The Federal Aviation Administration warned Tuesday that New York's three big airports may violate federal regulations if they block flights from landing slots newly auctioned by the FAA.

The Port Authority of New York and New Jersey operates Kennedy, LaGuardia and Newark Liberty airports. Earlier this month it threatened to block flights, resulting from a slot auction, and to block those planes from using terminal gates or other ground facilities.

The first auction is set for Sept. 3 for two slots at Newark. Flights in those slots could begin as early as Oct. 23.

NEW YORK — With the price of diesel down for the sixth straight week, truckers may breath a sigh of relief. But some analysts warn the break could be short-lived.

The U.S. average cost for on-highway diesel fell about 6 cents to just under $4.15 a gallon last week from a week earlier, according to the Energy Information Administration. Diesel has fallen about 13 percent since a record on July 14 of about $4.74 a gallon, but it is still up nearly 45 percent from a year ago.

Longbow Research analyst Lee Klaskow said the recent relief at the pump gives an extra boost to truckers, because most companies have fuel surcharges that are delayed by one to two weeks. That means some truckers still are gauging the price they charge shippers by a higher price of diesel than the current price.

NEW YORK — Sears Holding Corp. voluntarily recalled 145,000 Kenmore brand coffeemakers because the wiring can overheat and cause fires or burns, the U.S. Consumer Product Safety Commission said Tuesday.

The recall includes 12-cup Kenmore and Kenmore Elite Coffee makers sold through Sears, Sears Hardware and Kmart stores, as well as online from August 2007 through April.

The company and the agency said there have been 20 reports of coffeemakers overheating, including 12 fires and causing damage to countertops, cabinets and floors. The retailer advised consumers to stop using the coffeemakers and return them to Sears or Kmart stores for a free replacement.

RIVERSIDE, Calif. — A federal jury awarded Mattel Inc. $40 million in damages Tuesday in a federal copyright lawsuit that pitted the house of Barbie against MGA Entertainment Inc., the maker of the saucy Bratz dolls.

Damages were awarded for contract interference and copyright infringement. No punitive damages were ordered against MGA. The same jury that decided the damages phase concluded last month that Bratz designer Carter Bryant came up with the Bratz concept while working at Mattel.

In his closing arguments, Mattel attorney John Quinn said MGA owed Mattel at least $1 billion in Bratz profits and interest, while MGA Chief Executive Isaac Larian aided in the breach of contract and owed nearly $800 million for his complicity. MGA attorneys said the jury should award Mattel as little as $30 million because the company had built the doll line's value with smart additions, branding and packaging.

WASHINGTON — Federal regulators say U.S. banking industry profits plunged by 86 percent in the second quarter, as slumps in the housing and credit markets continued.

Federal Deposit Insurance Corp. data show federally insured banks and savings institutions earned $5 billion in the April-June period, down from $36.8 billion a year earlier.

The roughly 8,500 banks and thrifts also set aside a record $50.2 billion to cover losses from soured mortgages and other loans in the second quarter.

The FDIC says 117 banks and thrifts were considered to be in trouble in the second quarter.

WAYNE, Mich. — Ford Motor Co. said today it will spend $75 million to retool part of its Michigan Truck factory to make car bodies, part of the automaker's plan to convert some truck factories to make smaller vehicles.

Michigan Truck's 1,000 workers who now make Ford Expedition and Lincoln Navigator sport utility vehicles will be sent to the nearby Wayne Assembly Plant, where Ford plans to add a third shift to make more Focus small cars.

The move will begin in November, when Ford starts moving the equipment to build the big SUVs to the Kentucky Truck Plant in Louisville. That will clear space for Michigan Truck's body shop to be retooled to make Focus bodies. Michigan Truck will be converted entirely to a car plant in 2010.

The Associated Press

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