Boeing orders set record for 3rd year in row
Pacific Northwest
Boeing
Boeing said orders this year have reached 1,047, setting a third straight annual record.
With more than a month left in the year, Boeing added 71 orders for 737s and 777s from unidentified customers and one 737 order from American Airlines, according to the company’s Web site.
The 71 unidentified orders are for 56 of Boeing’s most popular airliner, the 737, and for 15 777s, one of the company’s most lucrative models.
Both Boeing and rival Airbus are benefiting from a jump in sales to Asia, where growing economies are spurring demand from first-time air travelers. Demand has also increased in the Persian Gulf, where oil-rich states are using their wealth to establish tourist and travel hubs. Both companies expect orders to peak this year and decline next year.
Boeing ended 2006 with 1,044 orders, topping Airbus in orders for the first time in five years and beating a prior record of 1,002.
Airbus, which had 1,021 orders through October, continued to win more contracts at the Dubai air show this month, surpassing its 2005 record of 1,055 planes.
Airbus’ order tally is based on gross orders for the year and don’t include orders that may have been canceled. Boeing’s gross orders now stand at 1,057, up from 1,050 last year.
Nastech
72 to be laid off, mostly in Bothell
Nastech Pharmaceutical said Wednesday that it began laying off nearly a third of its work force in the wake of Procter & Gamble’s withdrawal from a joint research partnership.
The Bothell company will terminate 72 employees across all areas of its operations, according to a regulatory filing with the Securities and Exchange Commission. Sixty-two of the laid-off employees are in Bothell and 10 are in Hauppauge, N.Y. Nastech will retain about 160 full-time employees after the layoffs.
Nastech’s troubles began early this month when consumer products giant P&G unexpectedly dropped funding for Nastech’s nasal osteoporosis treatment. The company’s shares fell more than 38 percent that day. On Wednesday, Nastech shares closed at $4.04, down a nickel, or 1.2 percent.
Last week, the company said it would spin off its RNAi research unit into an independent company.
Pacific Northwest
Redhook
Post-merger deal for CEO detailed
Redhook CEO Paul Shipman will become chairman emeritus and receive a salary of $90,000 for consulting up to 180 days during the first year after Woodinville-based Redhook merges with Widmer Brothers Brewing in Portland. The deal is expected to close in the first quarter.
If Shipman’s consulting extends beyond 180 days, he will receive $500 a day for his work.
For the next two years, Shipman will receive severance of $267,800 a year and $500 a day for any consulting he does with the company, according to a filing Wednesday with the Securities and Exchange Commission.
Last year, Shipman’s salary was $257,500. He also received an $8,000 bonus, $100,000 in non-equity incentive-plan compensation and $19,000 in other compensation.
Nation and World
Currency
Rate-cut rumors sink dollar again
The dollar sank to new lows Wednesday on pessimism about the U.S. economy and speculation that the Federal Reserve will cut interest rates again.
The euro spiked to $1.4856 before retreating slightly to $1.4848 in late afternoon trading. It broke the $1.48 mark for the first time Tuesday, when it settled at $1.4815.
The dollar also hit a two-year low against the Japanese yen, falling as far as 108.27 yen before rising slightly to 108.68 yen. That was still down from 109.69 yen Tuesday.
The euro, the pound and other currencies have been climbing steadily against the dollar since August amid fears for the health of the U.S. economy, stoked by the subprime credit crisis.
Labor Department
Applications drop for jobless benefits
Fewer people signed up for jobless benefits last week, an encouraging sign that most companies aren’t resorting to large-scale layoffs as the country copes with continuing problems in the housing and credit markets.
The Labor Department reported Wednesday that new applications filed for unemployment insurance dropped by a seasonally adjusted 11,000 to 330,000 for the week ended Nov. 17.
It was the lowest level since the start of November.
The 330,000 level of claims was in line with economists’ forecasts. A year ago, new claims for unemployment insurance stood at 322,000.
The four-week moving average of claims, which smooths out week-to-week volatility, dipped last week to 329,750, a decrease of 750 from the previous week.
It marked the lowest level since late October.
“We continue to believe that most statistical and anecdotal evidence continue to point to a relatively healthy labor market,” said Omair Sharif, an economist at RBS Greenwich Capital.
In other news, a gauge of future business activity suggested the economy’s growth in the months ahead could slow more than anticipated. The Conference Board reported that its index of leading indicators fell 0.5 percent in October, after edging up 0.1 percent in September.
Deere
Strong sales plow through forecast
Agricultural equipment maker Deere reported a 52 percent increase in fourth-quarter earnings Wednesday on surging demand for tractors and combines worldwide, walloping Wall Street’s expectations.
Deere said the strong agricultural sales enabled it to overcome declines in other sectors because of the U.S. housing slump.
Deere shares soared $7.06, or 4.9 percent, to $152.06 - double the level of just 15 months ago.
Agriculture Department
Change would help Hawaii exotic fruit
Hawaii exotic fruit growers may get a break, and they say it’s about time.
Until now, it’s been easier for growers in Thailand to ship mangosteen, dragon fruit and Korean melons to the U.S. mainland than for Hawaii farmers.
The U.S. Agriculture Department has proposed the same rule that applies to Thailand also apply to America’s 50th state.
Export would be allowed as long as the fruit is treated with irradiation.
The state has been asking for the change for nearly a decade, because mainland markets bring higher prices.
State agriculture officials say nearly 1.5 million pounds of Hawaii tropical fruit is produced each year, with sales totaling about $2.6 million last year.
Compiled from Bloomberg News, The Associated Press and Seattle Times business staff