Saturday, October 20, 2007
NATION
McDonald’s profits jump
27% for third quarter
CHICAGO — Strong breakfast sales in the U.S. and a weak dollar overseas proved a potent combination for McDonald’s Corp. in the third quarter, helping to power the fast-food chain to a 27 percent jump in profit despite rising costs.
The Oak Brook, Ill.-based company reported earnings Friday that were in keeping with preliminary results released last week, posting an impressive $1.07 billion in net income.
McDonald’s executives said they hope to keep the momentum going with more new products, hinting that specialty coffees such as cappuccinos, lattes and mochas may be coming soon on the heels of its success with premium roast coffee.
3M to cut prices
on films for LCD TV
MINNEAPOLIS — 3M Co. gave in to competitive pressure and said on Friday it would cut prices on its profitable films for LCD television screens. The news sent 3M shares down more than 8 percent.
3M has invested heavily in new plants to make the LCD films, which once carried profit margins around 30 percent.
Demand grew as more people bought flat-panel TVs with ever-larger screens. But prices have come under pressure as TV selling prices have dropped.
3M executives told analysts that other divisions would make up the difference, but they didn’t offer specifics.
Associated Press