Business digest 02/28/04

Stewart judge throws out most serious charge

NEW YORK -- A federal judge Friday tossed out the most serious charge against Martha Stewart, a count alleging she deceived investors in her company when she publicly declared her innocence in an insider-trading scandal. The decision by U.S. District Judge Miriam Goldman Cedarbaum came just five days before jurors are expected to begin deciding the case against the celebrity homemaker and her stockbroker. Stewart still faces four criminal counts -- conspiracy, obstruction of justice and two counts of lying to investigators. The securities fraud count carried a potential prison sentence of 10 years and a $1 million fine. The remaining four counts against Stewart each carry a sentence of five years and a $250,000 fine, though a conviction would carry a far lighter penalty under federal sentencing guidelines.

Economy grew at 4.1 percent rate at end of '03

WASHINGTON -- Brisk business spending helped the economy expand at a healthy 4.1 percent pace at the end of 2003, raising hopes that the recovery will be durable and spur more meaningful job growth in the coming months. The Commerce Department's latest reading on gross domestic product, released Friday, showed the economy grew slightly faster in the October-to-December quarter than the 4 percent annual rate estimated a month ago. GDP measures the value of all goods and services produced within the United States and is an important gauge of the economy's fitness.

Ford delays plan to cut 1,000 jobs in Hazelwood

ST. LOUIS -- Ford Motor Co. said Friday it has pushed back its plans to eliminate one of its two shifts -- about 1,000 jobs -- at its St. Louis-area assembly plant. The automaker, which said last month it would jettison the second shift at its Hazelwood plant by April 26, has not decided how long the postponement involving the afternoon shift and its estimated $60 million in payroll would last. In 2002, Ford announced it would close the plant by the middle of the decade. The company reversed its decision last September.

Supermarkets, clerks reach tentative deal

LOS ANGELES -- Southern California grocery clerks will decide during a two-day vote whether to end the longest supermarket strike in U.S. history and send 70,000 cash-strapped employees back to work. The grocery workers' union and three chains settled on a tentative contract Thursday. Union leaders were slated to brief the clerks on the details of the proposed deal beginning this morning.

UAW, American Axle end day-old strike

DETROIT -- The United Auto Workers reached a tentative contract agreement Friday with parts maker American Axle & Manufacturing, ending a day-old strike by thousands of workers. The tentative four-year deal covers about 6,500 workers. An American Axle spokeswoman was tracking down information on the agreement and couldn't immediately comment.-- From wire reports