Lansing State Journal from Lansing, Michigan • Page 36

Lansing State Journal Y)OAY iLlVING Friday May 12, 2006 www.lsj.com Gardens galore Find advice and lots of plants as local garden sales crop up. Page ID MARKET WATCH STOCKS, PAGES 7D rra SJNESS mm Dow Jones jrt Down 141.92 Last 11,500.73 r- Down 16.93 Last 1,305.92 Nasdaq Down 48.04 Last 2,272.70 Wilshire5000 r-r Down 183.59 Last 13,246.78 to bringing the nation's second biggest automaker into the top 25 percent of companies on the Standard Poor's 500 index in terms of share- Shareholder calls CEO a 'failure' at annual meeting For updated quotes, send a text message with STOCK TICKER (e.g., GM) or FUND TICKER (e.g., AGTHX) to 44636 (4INF0). 33 By Dee-Ann Durbin Associated Press WILMINGTON, Del. Ford shareholder at the automaker's annual meeting. "Mr.

Ford is a failure. He has put shareholders and the company at bankruptcy's door," said Sam Joanette, a Ford retiree and shareholder from Miami Beach, who said he has lost more than $1 million since investing most of his retirement money in Ford in 1999. Joanette pointed to a recent report from the investment firm TPMorgan showing the credit market has set at 43 percent the probability of Ford defaulting on its bonds within three years. Joanette asked Ford to commit warranted. "He's been a chairman who's very responsive to small shareholders," Davis said.

Shareholders also voted, by a 77 percent margin, to keep Ford's share structure, which gives Ford family members 16 votes per share while other shareholders have only one vote. Bill Ford told the audience of about 65 shareholders that the company is on track with its North American restructuring plan, which calls for cutting 30,000 jobs and closing 14 plants by 2012 in addition to changing the company's bureaucratic cul ture, which he says has stifled innovation in the past. "We know we can't just cost-cut our way to success, so we are changing the business model that's existed for many decades at Ford," Bill Ford said. Shareholders made few comments about the restructuring plan, but several took Ford's environmental record to task, saying it has the worst average fuel economy of any major automaker at 19.1 miles per gallon. Russell Long, director of the environmental group Bluewater See FORD Page 6D fr ma holder return, a promise Joanette said Bill Ford originally made in 1999.

Bill Ford didn't respond to that request or to the criticism. Other share Ford Motor Co. Chairman and Chief Executive Bill Ford reiterated his pledge not to accept a salary or bonus until the company's automotive operations return to profitability, but Thurs holders jumped to the CEO's defense. Longtime shareholder activist Evelyn Davis of Washington said the attack was un- day's vow didn't satisfy every Interest rate fears haunt markets NEW YORK Anxious investors sent stocks plunging Thursday as surging commodities prices fed fears that the Federal Reserve would extend its two-year streak of interest rate hikes. The major indexes saw their biggest one-day drops since mid-January.

The sharp decline reflected Wall Street's deep disappointment with the Federal Reserve's statement Wednesday that more rate tightening could be needed to counter inflationary pressures from energy and metals. The Dow plunged 141.92, or 1.22 percent, in its largest slide since falling 213 points Jan. 19. The Standard Poor's 500 index slid 1.28 percent and the Nasdaq composite index lost 2.07 percent. Lansing- LOO Launch I MICHIGAN etro bus Strike gets strong support at Delphi The voting's not done, but so far there's little doubt that Delphi Corp.

production workers will give the United Auto Workers union authority to call a strike if a bankruptcy to serve local fliers judge voids their contract with the Troy-based auto By Jeremy W. Steele Lansing State Journal A partnership between an Okemos travel agency and Owosso-based Indian Trails Inc. plans to start daily bus service from Lansing to Detroit Metropolitan Airport by the end of summer. The Michigan Flyer service would make eight trips back and forth between Metro Airport in Romulus with proposed stops in East Lansing and Okemos. Travelers would pay $25 each way for a single ticket or $50 for a family of up to six.

"If you look at Detroit Metro, it's one of the top 10 airports in the country and the only one without mass transport or 5 33 irA supplier. Workers at a half-dozen plants where the votes already have been counted have overwhelmingly favored allowing a strike, and local union officials said they expect similar results in voting that winds up Sunday at 22 plants. Locals in Saginaw and Wyoming; Rochester, N.Y.; Columbus and Dayton, Ohio; and Decatur, voted overwhelmingly in favor of authorizing a strike, local leaders said. Exec: Lawsuit will strengthen Toyota DETROIT The new head of Toyota Motor North American operations, whose predecessor resigned over a sexual harassment suit, told a women's business association on Thursday that the company will emerge stronger from the scandal because it has prompted it to examine its practices. Chief Executive Officer and President Jim Press, previously president of Toyota Motor Sales USA, got his new job Tuesday when Hideaki Otaka resigned early over the allegations.

During a previously scheduled luncheon sponsored by Inforum, a women's business association in Detroit, Press said he could not comment directly on the lawsuit, in which Toyota also is a defendant. But Press commended Otaka for leaving so that the allegations would not be a distraction. Meijer bringing E85 fuel to Indiana Motorists whose vehicles can run on ethanol-based fuel should be able to fill up at nearly 50 gas stations around Indiana by the end of the year, officials said. Indiana Gov. Mitch Daniels and U.S.

Secretary of Energy Samuel Bodman filled the tank of a sport utility vehicle from Indiana's 30th E85 pump during a Thursday news conference at an Indianapolis Meijer store. Walker, Meijer Inc. and Detroit's General Motors Corp. plan to make the fuel, a blend of 85 percent ethanol and 15 percent gasoline, available at 19 more stores by the end of the year. MARK LENNIHANAssociated Press Flyin' high: A radio-controlled 16-inch Superman, made by Mattel "Superman Returns." Retailers hope the summer blockbusters can Inc, was launched into toy stores ahead of the theatrical debut of attract kids to stores for an extended movie experience with toys.

Retailers align with big films of summer to sell merchandise Merchandising Jedi More than $12 billion in "Star Wars-merchandise has been sold since the release of the first film in 1977. "Star Wars" merchandise sales worldwide for the six episodes I NATIONAL Darth Maul action figure A A from the airport," said Indian Trails President Gordon Mackay. "There is a tremendous amount of people every day who drive back and forth. A lot of them aren't happy about doing that." Capital City concerns The plan, however, is meeting opposition from officials at Capital City Airport, who fear the service could draw passengers from the local airport. Similar bus services in Rockford, HL, and Columbia, hurt air service to the communities' airports, said Robert Selig, executive director of the Capital Region Airport Authority: "Gradually, it just eroded business to the point where the airlines left." Such a loss would make it more difficult for mid-Michigan to attract companies that rely on a nearby airport for business travel, he said.

Rockford since has drawn a handful of carriers. Its Web site lists UAL United Airlines, startup Festival Airlines, Allegiant Air Inc. and Apple Vacations as carriers that are or soon will offer service. MSU travelers, too Indian Trails' Mackay and Michigan Flyer Vice President Oded Norkin say the service will target people already driving to Detroit. "We're not targeting the business travelers who are flying out of Lansing," said Norkin, whose wife, Rachel, owns Skybird Okemos Travel, which is partnering in the service.

"They're going to continue to fly Lansing. We're targeting people who are flying Southwest, AirTran and all those low-cost carriers." The bus service also would target Michigan State University students and faculty, he said. MSU already pays for taxi or limousine service for some faculty or campus visitors to Detroit Metro. Michigan Flyer is in talks with East Lansing to lease parking spaces for its users in city ramps. Norkin said he hopes to have a stop at the East Lansing Marriott at University Place and the Fairfield Inn in Okemos.

Contact Jeremy W. Steele at 377-1015 or jwsteelelsj.com. Kohl's climbs 34.1 in first quarter MENOMONEE FALLS, Wis. Kohl's profits jumped 34.1 percent during the fiscal first quarter. The retailer reported Thursday it earned $167.2 million, or 48 cents per share, for the three-month period that ended April 29.

That was up from profits of $124.7 million, 36 cents per share, one year earlier. Sales rose 16.1 percent to $3.2 billion in the recent quarter from $2.7 billion a year earlier. Cost controls give Penney a boost PLANO, Texas J.C. Penney Co. said Thursday that its profit rose 22 percent in the first quarter, as holding overhead costs below the $5.8 billion Targeting kid consumers: Mattel's "Fast Talkin' Lightning McQueen" talking toy car is among the movie merchandise related to summer films.

Other "Cars" items include tracksets and racing car beds. Toy makers hope to cash in on kids passion for movies By Anne D'Innocenzio Associated Press NEW YORK Let the force be with retailers this summer. After enjoying a sales bonanza last year from every-thing "Star Wars," the nation's merchants, particularly toy sellers, are hoping that this summer's blockbuster films will have at least the same power to move an avalanche of merchandise, from inflatable Superman suits to pirate swords with sound effects. Among the coming summer films that have released the most merchandise are Disney-Pixar's "Cars," Walt Disney's "Pirates of the Caribbean: Dead Man's Chest," and Warner "Superman Returns." Sony Pictures' "The Da Vinci Code," based on Dan Brown's best-selling novel, also has some games Lucasfilm Ltd. tm Associated Press rate of inflation helped the department store operator supplement a modest revenue increase.

Penney reported Thursday it earned $210 million, or 89 cents per share, for the cars; "Pirates" is backed by items including action figures, swords with sound effects and T-shirts with skull motifs; with "Superman Returns," shoppers will find radio-controlled 16-inch su-perheroes that soar up to 300 feet, inflatable Superman suits, as well as trendy fashion items like jewel-encrusted shirts and handbags. Officials from KB Toys and Toys Us Inc. report strong early sales of the movie-related goods, which started to ap- and apparel, though the bulk of related merchandise sales is coming from all the book spinoffs, including religious and art books. "Last year, it was all about 'Star said Ernie Spe-ranza, chief marketing officer at KB Toys Inc. This summer, he's betting that three movies "Cars," "Superman" and the "Pirates" movie "will be better than one." "Cars" is supported by such items as tracksets, racing car beds, and animated talking pear in stores in early ApriL And the momentum should pick up when the films debut over the next few weeks.

What should help is that the movies are expected to attract diverse audiences. Merchandisers are looking well beyond the summer and plan to refresh offerings tied to the DVD releases during the holiday season, as well as to sequels. three-month period that ended April 29. That was up from profits of $172 million, or 63 cents per share, one year earlier. Revenue rose 2.5 percent to $4.22 billion from a year earlier.

Viacom takes tumble in 1st quarter NEW YORK Viacom a media conglomerate that owns MTV, VH1 and Paramount Pictures, reported a 9 percent decline in first-quarter earnings Thursday as debt mounted to pay for an acquisition and share buybacks. Viacom, which separated from CBS Corp. at the beginning of the year, earned $317.2 million, or 43 cents per share, for the three-month period that ended in March. That was down from profits of $350.3 million, or 47 cents per share, one year earlier. Revenue rose 12 percent to $2.37 billion, partly because of the acquisition of DreamWorks LLC.

Need answers? Each day we take a closer look at SMART Flood insurance well worth the money Mci Af enc issues facin9 yu anc' your neighbors. Today: INTERNATIONA It's hard to forget last year's hurricane season and the lessons we all should have learned from it. One of the chief lessons for home- Michelle SlNGLETARY The Color of Money Atwork owners and renters: Con Michelle Singletary writes "The Color of Money" column for The Washington Post Writers Group. Write to her in care of The Washington Post, 1150 15th St. N.W Washington, DC 20071.

E-mail her at singletarywashpost.com. T-Mobile parent's profits up 9.7 Germany telecommunications company Deutsche Telekom AG said Thursday it saw a 9.7 percent rise in first-quarter profits after growth at its T-Mobile wireless unit outpaced declines in its traditional fixed-line business. The company reported Thursday it earned $1.38 billion during the three-month period that ended March 31. That was up from profits of $1.2 billion one year earlier. Sales rose 3.9 percent to $18.96 billion.

From wire reports against damage from rising water is flood insurance underwritten by the National Flood Insurance Program. This program is greatly underutilized even though flooding is a major source of loss to individuals and businesses throughout the United States, according to the Rand study. One of the reasons many people don't buy flood insurance is simple. They don't think they need it, said Lloyd Dixon, senior economist at Rand and lead author of the study. "If people don't see water, their risk perception is lower," Dixon said.

The study is part of a wide-ranging evaluation of the nation's flood insurance system. The study was requested by the Federal Emergency Management Agency (FEMA), which is still dealing with the devastation of Hurricane Katrina. "Forecasters say this hurricane season could be as destructive as 2005, the worst on record," Jesse Munoz, acting director of the Transitional Recovery Office for the Mississippi Hurricane Katrina efforts, said in a release by FEMA. For most homes, apartments and businesses, the only insurance protection date because flood insurance requires a 30-day waiting period to take effect. This means that if you have damage from a flood, you better hope your policy was put in place 30 days before the damage.

Otherwise, you are not covered. About half of homeowners living in some of the most flood-prone areas of the United States buy federal flood insurance, leaving millions of families at risk for severe financial losses when floods strike, according to a study released this year by the Rand a nonprofit research organization. I Monday I COMING SATURDAY sider getting flood insurance. Here are two facts I bet you didn't know. Floods occur in all 50 states and most homeowners insurance does not cover flood damage.

Here's another fact you might not have realized. The Atlantic hurricane season begins June 1. It's important to remember that Your Money I Tuesday mgniecn Mi wuiR Wednesday Andrea Kay Careers Kay writes about the workplace Thursday for Gannett News Service. Finance Contact us: Kevin Polzin, Business Editor 377-1056, E-mail: businesslsj.com.