Randall Chase

Ford investors shower execs with praise at meeting

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Ford investors shower execs with praise at meetingExecutive Chairman for Ford Motor Company William Ford, right, and Ford President and CEO Alan Mulally, left, share a laugh during the company's annual shareholders meeting at the Hotel DuPont in Wilmington, Del., Thursday, May 10, 2012. Thursday's meeting lasted only 45 minutes, much of it spent with shareholders praising CEO Alan Mulally and Executive Chairman Bill Ford Jr. for the company's turnaround. (AP Photo/Ron Soliman)(Credit: AP)

WILMINGTON, Del. (AP) — Ford executives won rave reviews from stockholders Thursday during the shortest company shareholder meeting on record.

Thursday’s meeting in Wilmington, Del., drew about 60 investors and lasted only 45 minutes. Much of it spent involved shareholders praising CEO Alan Mulally and Executive Chairman Bill Ford Jr. for the company’s turnaround.

“You guys are doing a tremendous job,” said Frank DeFazio, a shareholder from Tucson, Ariz.

Mulally told shareholders the company is no longer in turnaround mode.

Ford, great-grandson of founder Henry Ford, noted that the Dearborn, Mich.-based company reported its third consecutive annual profit last year — $20.2 billion. The company’s worldwide sales rose 6.7 percent to nearly 5.7 million cars and trucks, despite slowdowns in Europe and China.

He also noted that Ford resumed paying a dividend in March for the first time since September 2006. Last month, Fitch Ratings raised the automaker’s credit from junk status to the lowest investment-grade rating.

Both men brushed aside questions about how long Mulally might stay with Ford and who might replace him.

“I look forward to continuing to serve,” said Mulally, who was hired from Boeing Co. in 2006 to revive the struggling automaker.

“Needless to say, the board is more than happy with the way Alan has led this company,” said Bill Ford.

Mulally’s pay package rose 11 percent last year to $29.5 million, roughly equal to a little more than $5 for every vehicle sold, but there were no rumblings of resentment from shareholders. More than 96 percent of the nonbinding say-on-pay vote was cast in support of the company’s executive compensation.

Shareholders also overwhelmingly rejected a proposal for each share of Ford’s outstanding stock to have one vote. In fact, the proposal gained less support than it did last year. The Ford family currently has voting control of Ford Motor Co. because of a two-tier share structure that gives it 16 votes per share.

Ford’s stock price rose 7 cents, or 0.7 percent, to $10.76 in afternoon trading Thursday. The shares are up from a 52-week low of $9.05 in early October but down 31 percent from their high of $15.35, reached almost a year ago.

While Ford’s financial performance has improved in recent years, the company faces tough competition from other automakers.

Sales at Toyota and Chrysler rose in April, for example, while GM’s and Ford’s declined. Ford’s U.S. sales were off 5 percent, and sales of its Fiesta subcompact fell 44 percent as customers chose larger vehicles. Sales of the Escape small SUV dropped 20 percent as Ford cleared out old models in advance of a new version this year. Besides offering new Escapes and Fusion sedans in North America this year, Ford will roll out new models in South America and Europe.

Nevertheless, recent increases in car and truck sales prompted Ford to announce Tuesday that it would add a week of production at 13 North American factories. The goal is to build an additional 40,000 vehicles this year.

Mulally said he expects industry-wide sales of between 14.5 million and 15 million in North America this year, and global sales of about 80 million, up 5 percent from last year.

“Our strong sales performance will continue in 2012, but the significantly stronger overall industry in the U.S. will make it a challenge for us to equal our full-year market share of last year,” Mulally said.

Delaware killer put to death after waiving appeals

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SMYRNA, Del. (AP) — A convicted Delaware killer who waived his right to further appeals and sought to speed his execution has been put to death by lethal injection.

The Delaware Department of Corrections says 28-year-old Shannon Johnson was pronounced dead early Friday at 2:55 a.m.

The execution came after a federal appeals court overturned a judge’s decision halting the execution in response to a last-minute effort by federal public defenders to spare his life.

Johnson was convicted of the 2006 murder of Cameron Hamlin, who was shot after Johnson found him sitting in a car with his ex-girlfriend near downtown Wilmington. Johnson later shot the former girlfriend, but she survived.

Despite saying he didn’t want to pursue any more appeals, public defenders sought to intervene in Johnson’s case without his consent, arguing he was mentally incompetent.

DuPont posts 1Q gain as Danisco pads profits

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DuPont posts 1Q gain as Danisco pads profitsFILE - This Jan. 23, 2012, file photo, shows a DuPont logo on sheets of Tyvek insulation covering a wall of a home under construction in Springfield, Ill. DuPont reported on Thursday, April 19, 2012, a net income of $1.49 billion, or $1.57 per share, for the quarter that ended March 31, compared to $1.43 billion, or $1.52 per share, for the first quarter of last year. Excluding a one-time pretax charge of $50 million for claims related to its weed killer Imprelis, DuPont says it earned $1.61 a share for the quarter. (AP Photo/Seth Perlman, File)(Credit: AP)

DOVER, Del. (AP) — Strong performances from DuPont’s agricultural and performance chemicals units, combined with its acquisition of Danish food maker Danisco last year, contributed to an increase in first-quarter earnings, the company said Thursday.

DuPont, based in Wilmington, reported net income of $1.49 billion, or $1.57 per share, for the quarter that ended March 31, compared to $1.43 billion, or $1.52 per share, for the first quarter of last year.

Excluding a one-time pretax charge of $50 million for claims related to its weed killer Imprelis, DuPont says it earned $1.61 a share for the quarter.

Analysts, who typically exclude one-time charges, expected $1.55 per share, according to a poll by FactSet.

Federal environmental regulators ordered DuPont to halt sales of Imprelis last year because of reports of damage to trees, particularly evergreens, which resulted in several lawsuits against the company. DuPont said Thursday that it has charged a total of $225 million for Imprelis claims as of March 31, and that it believes total charges could range as high as $575 million. The company intends to seek recovery from insurance carriers for costs exceeding $100 million.

In the meantime, sales for the quarter grew 12 percent to $11.2 billion, as higher local prices and portfolio changes helped offset lower volumes.

Chairwoman and CEO Ellen Kullman said the results were about what DuPont expected after a challenging fourth quarter in which the company saw a slight dip in net income as customers destocked inventories.

“We’re off to a good start of the year,” she said. “We expected slow sequential improvement, and that is what we’re seeing.”

“We’re encouraged with sequential improvement for many of our industrial businesses in the first quarter compared to the fourth quarter,” she added.

DuPont reaffirmed its full-year earnings guidance of $4.20 to $4.40 per share, which represents growth of 7 percent to 12 percent, excluding one-time items.

The company’s shares fell 74 cents to $52.53 in midday trading.

The agricultural unit led first-quarter performance with sales up 16 percent, or $576 million, to $4.1 billion, reflecting 8 percent higher volumes and 8 percent price increases.

DuPont said seed sales were led by corn in North America, as well as an early start to the European growing season and commercial success in Brazil’s season for safrinha corn.

Seed sales rose 20 percent to $3.2 billion, while crop protection sales increased 7 percent, to $929 million.

“I think ag is the big story for the quarter,” said Edward Jones analyst Jeff Windau.

The acquisition of Danisco helped send pretax operating income in DuPont’s nutrition and health unit soaring to $83 million, from $25 million.

Sales in the nutrition and health unit jumped 149 percent to $808 million as the result of acquiring Danisco’s specialty food ingredients business.

Overall sales for DuPont increased by 23 percent in Latin America, with 15 percent higher local selling prices and a 4 percent volume gain. Volumes fell by 13 percent in Asia-Pacific region, however, and were essentially flat in North America, Europe, Africa and the Middle East.

Sales were off by 17 percent in the electronics and communications unit as volumes fell 18 percent amid weak demand for photovoltaics, which was partially offset by increased demand for smart phones and tablets.

However, Windau credited DuPont with its pricing strength, which was up across all market regions and business segments.

“It is pretty impressive that they’re able to maintain that,” he said, adding that DuPont’s ability to raise prices is attributable in part to supply constraints.

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Solar Trust seeks bankruptcy protection in Del.

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WILMINGTON, Del. (AP) — A California solar energy company that was unable to meet a deadline for an Energy Department loan guarantee last year has sought bankruptcy protection in Delaware.

Solar Trust of America’s Chapter 11 filing on Monday listed assets between $1 million and $10 million, and liabilities between $10 million and $50 million.

The filing comes amid the ongoing controversy surrounding Solyndra, a solar firm that received a half-billion dollar federal loan and was touted by the Obama administration before declaring bankruptcy last year.

Interior Secretary Ken Salazar and California Gov. Jerry Brown were on hand last June when Solar Trust broke ground on a 1,000-megawatt project in California. The project was touted as the world’s largest solar power plant and a keystone of the Obama administration’s efforts to promote solar energy.

Investors To Get Google Records On Online Drug Ads

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WILMINGTON, Del. (AP) — A Delaware judge has given Google Inc. until April 9 to give a pension fund investors company documents involving what authorities said was the illegal online marketing of prescription drugs to U.S. consumers by Canadian pharmacies.

The judge entered the order Wednesday in a complaint filed by the DeKalb County Pension Fund. Fund attorneys said they want to see corporate records after Google agreed last year to forfeit $500 million following a U.S. government investigation.

The settlement allowed the Internet search leader to avoid criminal prosecution for allegations it improperly profited from ads promoting Canadian pharmacies that marked drugs to U.S. consumers.

The judge’s order covers all documents presented to Google board members about Canadian pharmacies using Google’s AdWords advertising program from January 2003 to Sept. 12, 2011.

Google said Thursday it had no comment on the judge’s order.

Shipping prescription drugs into the U.S. is illegal, investigators have said.

Previously, Google has said it banned the advertising of prescription drugs in the U.S. by Canadian pharmacies and that it should have never allowed certain ads. In 2010, Google announced new restrictions for online pharmacies seeking to advertise with AdWords.

Businesses using AdWords select keywords for advertising. When people search on Google using a business’s keyword, that ad may appear next to the search results.

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Investors To Get Google Records On Online Drug Ads

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WILMINGTON, Del. (AP) — A Delaware judge has given Google Inc. until April 9 to give a pension fund investors company documents involving what authorities said was the illegal online marketing of prescription drugs to U.S. consumers by Canadian pharmacies.

The judge entered the order Wednesday in a complaint filed by the DeKalb County Pension Fund. Fund attorneys said they want to see corporate records after Google agreed last year to forfeit $500 million following a U.S. government investigation.

The settlement allowed the Internet search leader to avoid criminal prosecution for allegations it improperly profited from ads promoting Canadian pharmacies that marked drugs to U.S. consumers.

The judge’s order covers all documents presented to Google board members about Canadian pharmacies using Google’s AdWords advertising program from January 2003 to Sept. 12, 2011.

Google said Thursday it had no comment on the judge’s order.

Shipping prescription drugs into the U.S. is illegal, investigators have said.

Previously, Google has said it banned the advertising of prescription drugs in the U.S. by Canadian pharmacies and that it should have never allowed certain ads. In 2010, Google announced new restrictions for online pharmacies seeking to advertise with AdWords.

Businesses using AdWords select keywords for advertising. When people search on Google using a business’s keyword, that ad may appear next to the search results.

Continue Reading Close

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