Business Digest

BUSINESS DIGEST

January 27, 2009

Coventry Health Care's CEO, Wolf, is resigning

Coventry Health Care Inc., a provider of medical benefit plans based in Bethesda, said chief executive Dale Wolf will resign. He will be replaced, effective Friday, by Allen Wise, who held the chief executive job before becoming board chairman in 2004, the company said yesterday. Coventry lost 74 percent of its value in New York Stock Exchange trading in the past 12 months, compared with the 49 percent decline in the six-member Standard & Poor's 500 Managed Health Care Index. Coventry is a member of the index. In October, the company fell the most in 17 years after reporting rising medical costs and bad investments hurt third-quarter earnings. The company appointed Wise executive chairman Dec. 10.

Bloomberg News

Woolrich sues Eddie Bauer over the retailer's slogan

STATE COLLEGE, Pa.: Clothing manufacturer Woolrich is suing Eddie Bauer over the retailer's slogan. The central Pennsylvania company contends in federal court filings that Eddie Bauer's slogan, "The Original Outdoor Outfitter," too closely resembles Woolrich's slogan, "The Original Outdoor Clothing Company." Woolrich wants Bellevue, Wash.-based Eddie Bauer Holdings Inc. to stop using the slogan, claiming trademark infringement. It is also asking for unspecified damages. Woolrich Inc. sued this month in Williamsport, Pa.

Associated Press

American Express profit falls 79% in fourth quarter

NEW YORK : American Express says its profit dropped 79 percent in the fourth quarter, as card members reduced spending amid the harsh economy. Net income dropped to $172 million, or 15 cents per share, from $831 million, or 71 cents per share, a year earlier. On an adjusted basis, excluding discontinued operations, the company earned $238 million, or 21 cents per share. Quarterly revenue fell 11 percent to $6.51 billion. Analysts polled by Thomson Reuters expected a profit of 22 cents per share on revenue of $7.22 billion.

Associated Press

Netflix fourth-quarter profits up 45 percent

LOS GATOS, Calif. : Netflix says its fourth-quarter earnings jumped 45 percent and surpassed analysts' estimates. The recession is making Netflix's online digital video disc rental service more enticing to budget-conscious consumers looking for home entertainment. The company ended 2008 with 9.4 million subscribers, a gain of 718,000 customers from the end of September, according to numbers released yesterday. Propelled by the robust growth, Netflix earned nearly $23 million, or 38 cents per share, in the three months ending in December. Analysts, on average, had projected earnings of 34 cents per share, according to Thomson Reuters. Revenue in the period climbed 19 percent to $360 million.

Associated Press

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