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Roundup: Wesco cuts earnings forecast; Japan's Nikkei lands Financial Times in $1.3 billion deal; more | TribLIVE.com
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Roundup: Wesco cuts earnings forecast; Japan's Nikkei lands Financial Times in $1.3 billion deal; more

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Pearson
Japanese media company Nikkei Inc. is buying the Financial Times as part of a $1.3 billion deal with British publisher Pearson PLC. The deal was announced Thursday, July 23, 2015.

Wesco cuts full-year earnings forecast

Electrical components supplier Wesco International Inc. cut its earnings outlook for full-year profit after reporting a 25 percent drop in profit in the April-June quarter.

For the second consecutive quarter, the South Side-based company said its net income declined on slack demand from industrial customers and bad weather that affected the construction industry.

Wesco predicted 2015 net income of $4.50 to $4.90 a share, down from an estimate of $5 to $5.40.

“We expect reduced demand in commodity-driven end markets in the near term and foreign exchange headwinds to continue for the remainder of the year,” CEO John Engel said in a written statement.

Net income in the April-June quarter was $51.8 million, or $1 a share, down from $68.9 million, or $1.29 a share, in the same quarter last year. Sales declined 4 percent to $1.9 billion.

Financial Times purchased by Japanese media firm

Japanese media company Nikkei Inc. is buying the Financial Times as part of a $1.3 billion deal with Britain's Pearson PLC.

The deal announced Thursday is part of Nikkei's strategy to boost its global reach and allows Pearson to concentrate on its core global education business.

John Fallon, chief executive of Pearson, said the company has been a proud proprietor of the Financial Times for nearly 60 years, but the rapidly changing media landscape meant it's time for the salmon-colored business daily to change hands.

“We've reached an inflection point in media, driven by the explosive growth of mobile and social,” he said in a statement. “In this new environment, the best way to ensure the FT's journalistic and commercial success is for it to be part of a global, digital news company.”

As part of the deal, Pearson has agreed to sell the vast majority of the assets in FT Group, including the Financial Times newspaper and the popular FT.com. However, Pearson will retain its 50 percent stake in The Economist Group as well as the FT's London headquarters on the banks of the Thames River.

Carnival settles claims of disability discrimination

The world's largest cruise provider and the Justice Department announced a settlement Thursday regarding access for people with disabilities on 62 ships in the Carnival, Holland America and Princess Cruises brands.

Miami-based Carnival Corp. will pay a civil penalty of $55,000 to the government and $350,000 in damages to individuals harmed by past discrimination, the government announced.

The settlement is the result of an investigation of complaints by the Justice Department. Among the complaints were allegations that the company failed to properly provide and reserve accessible cabins for individuals with mobility disabilities; afford individuals with disabilities the same opportunities to participate in programs and services, including boarding and leaving the ship; and provide effective communication during emergency drills.

Harley-Davidson recalls bikes to fix saddlebag problem

Harley-Davidson is recalling more than 185,000 motorcycles in the United States because the saddlebags can come loose and fall off, increasing the risk of a crash.

The recall covers certain 2014 and 2015 Road King, Street Glide, Electra Glide Ultra Classic, Ultra Limited, Police Road King, Police Electra Glide and CVO Ultra Limited bikes. Also affected are the 2014 CVO Road King and 2015 Electra Glide Ultra Classic Low, Ultra Limited Low, Road Glide, CVO Street Glide and CVO Road Glide Ultra motorcycles.

Harley said it found the problem through warranty claims and traced it to mounting hardware. Dealers will replace the hardware free of charge starting Monday, July 27.

The company said in documents filed with federal safety regulators that it had no reports of crashes or injuries as of June.

Other earnings news

• Federated Investors reported a 13 percent increase in profit for the second quarter. The Downtown-based investment manager said Thursday that net income was $41.8 million, or 40 cents a share, in the April-June quarter, up from $36.9 million, or 35 cents per share, a year earlier. Revenue was $228.1 million, up 7 percent from $213 million last year. The revenue gains were due primarily to a decrease in voluntary fee waivers on money market funds. Operating expenses rose 3 percent, to $158.8 million, from $154.1 million due to an increase in distribution costs. Federated's board of directors also declared a dividend of 25 cents per share.

• Huntington Bancshares reported a 19 percent spike in second-quarter profits from stronger mortgage and commercial lending. The Columbus, Ohio-based bank said net income was $196.2 million, or 23 cents per share, up from 164.6 million, or 19 cents per share, a year ago. Total revenue shot up 8.8 percent to $772.5 million, boosted by the purchase of an equipment financing company that increased commercial loans. Noninterest expense also increased 7 percent to $491.8 million on higher personnel and outside data processing costs. Huntington is the sixth largest bank in the Pittsburgh metro market with 38 branches.

• FNB Corp. reported a 16 percent increase in second quarter profit on strong growth in lending.

The North Shore-based parent of First National Bank said Thursday that net income for the quarter was $38.1 million, or 22 cents per diluted share, up from $32.8 million, or 20 cents per share, the same period a year ago. Total revenue increased 6.6 percent from last year to $163.5 million on expanded commercial loans and leases as the bank expands its footprint in the East and Midwest. Non-interest expense increased 4.2 percent to $96.5 million because of an increase in salaries and benefits, as well as higher costs for marketing and outside professional services.

• Rail products supplier Wabtec Corp. grew profit 14 percent in the second quarter on higher sales to rail freight customers. The Wilmerding-based company said its net income in the April-June quarter was $101.5 million, or $1.04 a share, compared with $88.7 million, or 91 cents a share, in the same quarter last year. Sales jumped 16 percent to $847 million, compared with $731.1 million. The company affirmed its prediction of full-year net income of about $4.10 a share and 10 percent sales growth for the year.