Business News at a Glance
Posted October 30, 2018 9:24 p.m. EDT
Facebook Reports Slowing Revenue and User Growth
Facebook’s growth is slowing. The social media company said Tuesday that its revenue rose 33 percent and profit increased 9 percent for the third quarter from a year earlier, roughly in line with what Wall Street had expected. But revenue growth was down from the 42 percent jump that Facebook had reported in the previous quarter, when it had also cautioned that its business was set to decelerate. Facebook also said its daily active users increased 9 percent from a year earlier to 1.49 billion, compared with 11 percent growth in the previous quarter. Its monthly active users reached 2.27 billion.
Apple Unveils New iPad and MacBook Air
Apple showed off a slate of new computers with better screens, faster processors and higher price tags Tuesday, including an iPad Pro that the company is trying to position as a primary work computer. The announcements included a new MacBook Air, the first major update since 2011 of Apple’s slimmest laptop, and a new Mac mini, Apple’s entry-level home computer. Like Apple’s iPhone released last year, the new iPad has much smaller borders around its screen, eliminating space for a home button. Instead, owners will unlock the device just by looking at it.
Job No. 1 for GE’s New Chief: Fix Its Ailing Power Business
While reporting its third-quarter results Tuesday, General Electric announced that it would slash its quarterly dividend to 1 cent a share from 12 cents a share starting next year. The move will save $3.9 billion in cash a year. GE also said Tuesday that it would cut its power business in two — one division with its gas turbine generators and the other home to the rest of the business, including electric grids and steam generators. “The talent here is real, the technology is special,” said Lawrence Culp Jr., GE's new chief executive. “But GE needs to change.”
Eurozone Growth Slips to Four-Year Low, Fueling Crisis Fears
Economic growth in the eurozone has fallen to its slowest pace in more than four years, and Italy is not growing at all, according to figures released Tuesday. The snapshot is likely to sharpen political divisions in the European Union and make the region more vulnerable to the forces rattling financial markets. The eurozone grew 0.2 percent from July through September compared with the previous quarter, according to the EU statistics agency. Separately, Italy’s government statistics office said growth during the third quarter was zero as manufacturing slumped. Eurozone growth in the quarter was only half as fast as it had been in the previous three-month period.
FedEx Ends Deal for NRA but Says It’s Not Because of Pittsburgh Shooting
FedEx is ending a partnership with the National Rifle Association that offered discounts to members of the gun-rights group. A spokesman for FedEx said the decision was not prompted by the mass shooting at a Pittsburgh synagogue Saturday. Instead, FedEx said that its decision to end its marketing relationship with the NRA was the result of a review that began months ago. The review showed that members of the group did not bring in enough shipping volume to warrant its participation in the program, the company said. More than 100 companies were dropped from the discount program as part of the review.
Defense Contractor Accused of Slighting Reservists in Hiring
In 2014, Nathan Kay applied for a pilot job at L3 Technologies, a Pentagon contractor that helps conduct surveillance missions around the world. After he didn't receive a response, he concluded that L3 was discriminating against him because he was an active guard member. On Tuesday, a motion to settle a class-action lawsuit Kay brought against L3 Technologies was filed in a federal court in Washington state. As part of the proposed deal, the company agreed to pay a total of $1.35 million to Kay and up to about 250 qualified reservists who have applied for jobs since 2011 but weren’t hired.