You have reached your limit of free articles this month.

Enjoy unlimited access to myStatesman.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and bonus content- exclusively for subscribers. Starting at just 99¢ for 8 weeks

X

Welcome to myStatesman.com

This subscriber-only site gives you exclusive access to breaking news, in-depth coverage, exclusive interactives and bonus content.

You can read free articles of your choice a month that are only available on myStatesman.com.

Business Digest: Toyota adds 543,000 vehicles to air bag recall


AUTOMAKERS

Toyota adds 543,000 vehicles to air bag recall

TOKYO — Toyota Motor Corp. says it is recalling another 543,000 vehicles in the U.S. for defective front passenger air bag inflators made by Japan’s Takata Corp.

Takata is at the center of a massive recall of inflators that can explode in a crash, spewing metal shrapnel inside the vehicles.

Toyota said Friday that the recall includes various models of sedans and SUVs made between 2006-2012. Among those recalled are the 2008-2009 Scion xB; 2009 and 2012 Corolla and Corolla Matrix, 2007-2009 and 2012 Toyota Yaris, 2012 4Runner and Sienna and various versions of Lexus made between 2006-2012.

Takata uses the chemical ammonium nitrate to cause a small explosion designed to inflate the air bags in a crash. At least 16 people have been killed worldwide and about 180 have been injured.

More than 100 million vehicles involving 17 automakers have been recalled worldwide, including 69 million in the U.S. alone, underscoring the scale of the crisis. Because of the scope of the recalls, the replacements are going to take years.

BANKING

JP Morgan Chase beats earnings forecasts

JPMorgan Chase & Co. said its fourth quarter profit rose 24 percent from a year earlier, helped by higher interest rates and strong results from its trading operations.

The nation’s largest bank by assets said it earned $6.73 billion, or $1.71 per share, compared with a profit of $5.43 billion, or $1.32 per share, in the same period a year ago. The results beat analysts’ forecast of $1.42 per share. The results included a tax benefit of $475 million.

Like most of Wall Street, JPMorgan benefited heavily from the stock market’s rally after the U.S. presidential election.

Overall revenue was $26.09 billion in the period. JPMorgan’s adjusted revenue was $23.38 billion, which also beat Street forecasts. Five analysts surveyed by Zacks expected $23.24 billion.

BANKING

Bank of America tops profit forecasts

Bank of America’s fourth-quarter profit jumped 47 percent from a year ago as the nation’s largest consumer bank benefited from higher interest rates and lower expenses.

The Charlotte, North Carolina-based bank said it earned a profit of $4.34 billion after payments to preferred shareholders, or 40 cents per share, up from $2.95 billion, or 27 cents a share, in the same period a year earlier. The results topped analysts’ expectations, who were looking for 38 cents per share, according to FactSet.

In BofA’s consumer banking division, the bank’s largest business by profit and revenue, had net income of $1.92 billion in the quarter, compared with $1.74 billion in the same period a year earlier. The business had been helped by higher interest rates, as net interest income rose from $5.23 billion to $5.47 billion year over year.

The nation’s second-largest bank posted adjusted revenue was $19.99 billion, which missed Street forecasts. Analysts surveyed by Zacks expected $20.62 billion.

ECONOMY

U.S. wholesale prices rise 0.3 percent

WASHINGTON — U.S. wholesale prices rose 0.3 percent in December, led higher by more expensive gas, food and cars.

The producer price index, which measures price changes before they reach consumers, increased 1.6 percent last year, the Labor Department said Friday. That’s the biggest 12-month gain since September 2014. Still, it is low historically and suggests inflation is largely in check.

December’s gain was led by a big climb in wholesale gas prices, which rose 7.8 percent. Food prices increased 0.7 percent, with chicken eggs, a volatile category, jumping 69.3 percent. Fresh fruits and melons, which soared last month, declined by the most in more than six years.

Prices at the pump rose in December. They averaged $2.35 a gallon nationwide Thursday, 14 cents higher than a month ago.



Reader Comments ...


Next Up in Business

Business Digest: Germany-based group buys Austin office building

COMMERCIAL REAL ESTATE Germany-based group buys Austin office building The Capital Ridge office building in Southwest Austin has a new owner. GLL Real Estate Partners, a real estate fund management group based in Munich, Germany, recently purchased the building from Capital Ridge-RE LP, according to Travis County deed records. The purchase price was...
Texas franchise tax looks on way out after House vote
Texas franchise tax looks on way out after House vote

The third-largest source of revenue for Texas state government — the franchise tax — appears poised for elimination after the Texas House gave final approval Friday morning to a bill that would phase it out. The Senate previously approved an alternative proposal to wind down the franchise tax using a different formula and time frame, but...
Meet the 4 companies reportedly interested in Whole Foods
Meet the 4 companies reportedly interested in Whole Foods

Two major investors in Austin-based Whole Foods Market have urged the company to consider putting itself up for sale in recent weeks. With 465 stores, 87,000 employees and annual sales of $15.7 billion, the grocer would seem like an attractive acquisition target. But it also has a bit of baggage. A Barclays analyst suggested in March that Whole Foods...
Texas House OKs bill to eliminate franchise tax
Texas House OKs bill to eliminate franchise tax

A plan to eliminate the state’s main business tax won initial approval from the Texas House late Thursday, despite arguments from opponents that the move is short-sighted at a time when lawmakers already are struggling to bridge a multibillion-dollar funding gap with deep budget cuts. The House voted 98-45 to approve House Bill 28, which would...
Business Digest: Exxon fined $20M for emissions from Texas plant

OIL & GAS Exxon fined $20 million for emissions from Texas plant BAYTOWN — A judge has ordered Exxon Mobil to pay a penalty of nearly $20 million for releasing 10 million pounds of pollutants into the air over the course of eight years from a refining and chemical complex east of Houston. U.S. District Judge David Hittner in a ruling Wednesday...
More Stories