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Businesses making news today

By The Associated Press  Friday, September 26, 2008

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General Electric Co., the industrial powerhouse that makes everything from jet engines to light bulbs, cut its earnings forecast for the year, blaming volatile financial markets that have damaged the profitability of its loan and lease business, which accounts for almost half its income.

Research in Motion Ltd. stock plunged in extended trading Thursday after the BlackBerry maker said the cost of launching new smart phones would eat into near-term profits. The firm is launching three major new models this quarter.

Pilgrim’s Pride Corp., the nation’s largest chicken producer, said high animal feed costs will force it to post a “significant loss” in its fourth quarter. The company, which holds about a quarter of the U.S. chicken market, said it is so sagged by debt that it may not meet the terms of its loan agreements and is trying to negotiate new terms with its lenders. Its shares slid to levels not seen since 2002.

Delta Air Lines Inc. and Northwest Airlines Corp. shareholders gave the go-ahead to a combination that would create the world’s biggest carrier, deciding that in their volatile industry they like their chances better together than on their own. The stock-swap deal announced April 14 still needs Justice Department approval. Another potential hurdle is a federal lawsuit seeking to block the deal that is set for trial Nov. 5 in San Francisco.

Wm. Wrigley Jr. Co. shareholders approved the chewing-gum company’s $23 billion sale to Mars Inc. The deal, expected to be finalized around Oct. 6, would create the world’s largest candy maker, topping Britain’s Cadbury PLC.

Oil prices swung higher in erratic trading Thursday as the prospect of a U.S. financial rescue plan raised expectations of a resurgence in domestic energy demand.

Discover Financial Services’ profit fell 11 percent in the third quarter but its lucrative card processing business drove the results above Wall Street’s expectations.

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