The Daily Herald from Arlington Heights, Illinois • Page 25

SATURDAY, OCTOBER 24, 2009 DaflyHoald Markets Obituaries dailyherald.com Business SF.CTION business See comics on Page 4. 3 What's new in theaters this weekend? Check out the movie ads on Page 5. LOCAL' Tenneco Inc. Upside Fortune Brands DOW JONES Close: 9,972.18 NASDAQ Close: 2,154.47 Close: 1,079.60 OfficeMax Inc. Federal Signal $6.84, Brunswick Corp.

$11.24, LOCAL Downside Biz in the 'Burbs and beyond Fortune reports earnings DEERFIELD Fortune Brands Inc. the company behind consumer brands including Jim Beam, Tideist and Moen, reported that its third-quarter profit dropped 63 percent, with the prior-year's results including a hefty gain related to the termination of a joint venture. The company earned $124.1 niiillion, or 82 cents per share, in the quarter, down from $335.9 million, or $2.21 per share, a year earlier. Excluding restructuring charges and other items, profit was 77 cents per share. Fortune Brands said the impact of the weaker dollar hurt earnings by 7 cents per share.

Exelon net income increases CHICAGO Exelon the biggest U.S. nuclear power producer, said third-quarter profit rose 8.1 percent as one-time gains offset a drop in electricity prices. Net income climbed to $757 million, or $1.14 a share, from $700 million, or 1.06, a year earlier, Chicago- based Exelon said in a statement. Excluding such one-time items as an increase in the value of contracts locking in energy prices and gains from investments in a trust ftmd for decommissioning of reactors, per-share profit fell 10 percent to 96 cents. Third-quarter revenue fell 17 percent to $4.34 billion, Exelon said.

The utility owner narrowed its frill-year forecast for earnings per share excluding one-time items to a range of $4 to $4.10 from $4 to $4.30. The average analyst estimate was $4.11. 'Thriller' dance set in Gumee GURNEE Six Flags Great America in Gumee is one of several Six Flags theme parks across the United States and Mexico to take part in a woridwide attempt to set a record for the largest simultaneous dance to Michael Jackson's "Thriller." The event takes place at 8:30 p.m. Saturday. This is the Thrill the World organization's third attempt to set a record, with a goal of 10,000 to 50,000 individuals dancing to "Thriller." Economist to speak at Harper PALATINE Economist Charles Wheelan will speak about "What the Current Economic Crisis Can Teach Us" at 7 p.m.

Tuesday, Nov. 3, in the Building Tlieatre at Harper College. Wheelan, who ran unsuccessfully to replace Rahni Emanuel in the special Democratic election for die 5th Illinois Congressional District, will give 10 lessons on how to "pluck opportunity from the current challenges." He wrote "Naked Economics; Undressing the Dismal Science." He also teaches public policy at the University of Chicago. College to host symposium GRAYSLAKE "Saving Money and Resources Through Green Practices, A Small Business Symposium" is being presented by the Illinois Small Business Development Center at CLC, Lake County Partners and the Lake County Workforce Investment Board from 8:30 a.m. to 12:30 p.m.

on Friday, Nov. 13, at the University Center of Lake County, 1200 University Center Drive on the Grayslake campus. Participants will learn practical approaches to going green that can save small businesses money and resources. The cost is $20, which includes breakfast. To register, visit wpdi.clcillinois.

Vaccines: Bio-Bridge Science Inc. received approval from the city of Beijing to produce DaflyHeiald 's and sell vaccines in China. Bio-Bridge, an Oak Brook biotechnology company, said the decision involves its previous acquisition of Xinheng Baide Biotechnology a serum manufacturing com- jany. The company said it received a business icense from Beijing, approving the formation of Bio-Bridge JRS Biosciences Co. Ltd.

For online updates like this on suburban businesses, subscribe to the Daily Herald's weekly newsletter at HI.OOMHKRG IMIO TO Donald Kohn, vice chairman of the U.S. Federal Reserve, speaks with attendees before a panel discussion at the Federal Reserve Bank of Boston conference in Chatham, Friday. Kohn called on bank supervisors worldwide to identify financial risks and find ways to shut down failing institutions without disrupting international markets. Bank closings top 100 BY MARCV GORDON Associated Press WASHINGTON The cascade of bank failures this year surpassed 100 Friday, the most in nearly two'decades. And the trouble in the banking system from bad loans and the recession goes even deeper than the number suggests.

The bank failures, 106 in all, are the most in any year since 181 collapsed in 1992, at the end of the savings-and-Ioan crisis. On Friday, regulators took over three small Florida banks Partners Bank and Hillcrest Bank Florida, both of Naples, and Flagship National Bank in Bradenton along with American United Bank of Lawrenceville, Bank of Elmwood in Racine, Riverview Community Bank in Otsego, and Ffrst Dupage Bank in Westmont, 111. Ffrst Dupage Bank, witli total assets of $279 million and deposits of $254 million, will be taken over by Itasca-based First Midwest Bank. Dozens, perhaps hundreds, of other banks remain open even though they are as weak as many that have been shuttered. Regulators are seizing banks slowly and selectively partiy to avoid inciting janic and partly because buyers for jad banks are hard to find.

Going slow buys time. An economic recovery could save some banks that would otherwise go under. But if the recovery is slow and smaller banks' finances get even worse, it could wind up costing even more. When a bank fails, the Federal Deposit Insurance Corp. swoops in, usually on a Friday afternoon.

It tries to sell off the bank's assets to buyers and cover its liabilities, primarily customer deposits. It taps the insurance fund to cover the rest. Bank failures have cost the FDIC's fund that insures deposits an estimated $25 billion this year and are expected to cost $100 billion through 2013. To replenish tiie fund, the agency wants banks to pay in advance $45 billion in premiums that would have been due over the next tiiree yeai-s. The FDIC won't say how deep a hole its deposit insurance fund is in.

It can tap a credit line from the Treasury of up to a half-ti-Ulion dollars to cover the gap. The list of banks in trouble is getting longer. At the end of June, the FDIC had flagged 416 as being at risk of failure, up from 305 at the end of March and 252 at the beginning of the year. Yet the pace of actual bank failures appears to be slowing. The FDIC seized 24 banks in July, 11 in September and 11 in October.

If any bank poses an immediate danger to customers or the broader financial system, regulators close it immediately, bank supervisors said. The issue is murkier for banks that might qualify to close but whose closings might still be postponed or even prevented. Tlie FDIC's first priority, spokesman Andiew Gray said, is to maintain public confidence in tire banking system. "As evidenced by the stability of insured deposits throughout last year, this mission has been a success," he said. He said public confidence isn't reason enough to delay a bank closing, because legally tiie decision to close rests witii whoever chai'- tered the bank a state or federal agency.

But more than a dozen experts, including current and former regulators, bankers and lawyers, say tlie FDIC's mission to maintain public confidence in tiie banking system contiibutes to the go-slow approach. "The FDIC was set up to create confidence and prevent bank runs," says Maik Williams, a former bank examiner for the Federal Being too aggressive about bank closings "can be counter to tiie mission." Sarah Bloom Raskin, Maiyland's top banking regulator, said: "Technically it's the states who decide, but in reality it's tiie FDIC calling you to say" when the bank will be closed. Last fall, the financial turmoil was rooted in bad bets tiiat the nation's biggest banks, like Citigioup Inc. and Bank of America had made on complicated, high-risk mortgage investments. Smaller banks have been undone by sometiiing more conventional real estate, constiuction and indus- ti-ial loans tiiat have soured as the recession has deepened.

Defaults are up as developers abandon failing projects and landlords can't meet tiieir loan payments. Home sales climb in suburbs BY ALAN ZIBEL Assnciuleii Press WASHINGTON Home resales rose in September to tiie highest level in more than two years, beating exjjecta- tions, as buyers scrambled to complete tiieir purchases before a tax credit for first- time owners expires. The National Association of Realtors said Friday tiiat sales rose 9.4 percent to a seasonally adjusted annual rate of 5.57 million in September, from a downwardly revised pace of 5.1 million in August. Sales had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters. Tlie median sales price was $174,900, down 8.5 percent from a year earlier, and slightiy lower than August's median of $177,300.

In the Chicago and suburban area, yeai-over-year home sales were up 5.9 percent to 6,862 total home sales in Septembei-, compared to 6,477 homes sold in September 2008. Tlie median home sale price for tiie Chicago area was $199,000 in September 2009, down 10.8 percent from $223,000 in September 2008. "Tliere's a miniboom going on in tiie housing market," said Tliomas Popik, who conducts a monthly suivey of real estate agents for Campbell Communications, a research firm. Tlie inventoiy of unsold homes on (lie market fell about 7 percent to 3.63 million. Tliat's a 7.8 montii supply at the current sales pace, and the lowest level since March 2007.

Nationwide sales are up nearly 24 percent from tiieir bottom in Januaiy, but are still down 23 percent from four years ago. Sales rose around tiie coun- tiy, especially in tiie West, where they grew 13 percent from a montii eariier. Foreclosure sales are booming in cities like Los Angeles, San Diego and Las Vegas. First-time honiebuyers and investors are snapping up homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of tiie sales price, up to $8,000, if the sale is completed by tiie end of November.

Old Orchard says it will drop apple and food court BY KIM MIKUS DAILY HERALD BUSINESS WRITER The owners of Westfield Old Orchard are expected to pick the giant apple off the top of the food court. The outdoor Skokie mall is making changes in attempts to update its look and increase customers. Removing tiie red apple tiiat's bigger than a car is one step to renovate the center, said marketing director Amy Benson. Another change for the upscale mall is to eliminate the food court and replace it with an "upgraded" dining concept. Benson said the renovated dining area would feature two restaurants, large windows and a retail mix.

She said die mall's owners have not signed leases and can't talk about the new tenants or further details of the plan. "It'll be good for the customer," she added. The construction of tiie new dining concept should start next summer and should take about a year to complete, she said. The village board in Skokie approved the proposed changes eai'lier tiiis montii. 'Die food court and tiie apple on top of it were added to tiie mall in tiie mid-1990s, Benson said.

Westfield officials told tiie board tiiat tiie upgiades are designed to make tiie mall more and bring in more shoppers and retailers. The changes will help tiie center suivive tiie bmtai economy, tiie company said. Three things you need to know today 1 Motorola posts Droid by mistake? WASHINGTON Days ahead of schedule, Motorola teniporarily posted photos and specs of its Droid smart )hone, which has until now remained under tight wraps. ust as quickly, the Schaumburg-based companyyanked down the offending information, but not before a handful of tech sites, including PC Magazine, managed to grab some screen-shots, according to the Christian Science Monitor Friday. PC Magazine said the new phone will be "licorice with brown sugar accents." Ithas an unusually high-resolution, 3.7-inch480-by-854 touch screea The Droid's bperatingsystem is Google's Android 2.0.

idbOSHA clamps down on BP YORK The Occupational Safety and Healtii Administration Friday rejected a BP PLC request for rnore time to coniply with a setdement over a 2005 explosion at a Texas City, Texas, refinery that killed 15 workers and left hundreds injured. The company hadn't provided a valid reason for the delay, Mark Briggs, director of Houston's OSHA office, said in a letter to BP dated Oct 15. The company also hadn't committed to resolving issues in pressure-reUef systems or residual risks, the letter said. BP pleaded giiilty to one violation of thefederal Clean Air Act and agreed to pay a $50 million fine. Exelon gets extension for plant CHICAGO Exelon owner of tiie largest commercial fleet of reactors, said it has won a 20-year extension for its operating license at the Three Mile Island nuclear power plant in Pennsylvania.

The U.S. Nuclear Regulatory Commission notified the company of the approval Friday, accorduig to an e-mailed statement from Exelon. The Chicago-based company first requested the renewal in 2008. Exelon has operated the 852-megawatt Three Mile Ishmd reactor since 1998. Unit 2 at Three Mile Island has been shut sfrice a partial meltdown in 1979..