Business digest 03/30/05

Monsanto raises earnings expectations

ST. LOUIS -- Monsanto Co. on Tuesday raised its earnings expectations for the unfolding fiscal year, citing better-than-expected results of its seeds and traits business. The agribusiness company's shares soared nearly 6 percent. The suburban St. Louis-based company said it expects earnings of 85 to 97 cents per share, up from its previous forecast of 71 to 93 cents per share for its fiscal year running from September through August.

Blockbuster to make refunds over late fees

DALLAS -- Blockbuster Inc. agreed to make refunds to consumers after officials in 47 states charged that the nation's largest movie-rental chain deceived the public with advertisements that proclaimed the end of late fees. Dallas-based Blockbuster also said it would change the advertising of its late-fee policy. Blockbuster, however, said it would not scrap the fees -- only do a better job of disclosing them. Chief executive John Antioco said even with refunds and the cost of new signs and brochures to explain the policy, the settlement will cost Blockbuster less than $1 million. It had revenue of more than $6 billion last year.

Verizon again tops bidding for MCI

NEW YORK -- Verizon has won the bidding for MCI Inc. a second time, agreeing to pay $1 billion more for the long-distance telephone company, and yet still considerably less than a rival bid from Qwest. Investors don't seem convinced Qwest Communications International Inc. will admit defeat, however. The new agreement increases the amount of cash MCI stockholders will receive for their shares while guaranteeing a minimum value for the Verizon shares that they'll get as the balance of the payment. Qwest, the smallest of the nation's four big local phone companies, said it will reassess the situation, but reiterated its position that its offer of $8.45 billion, or $26 per share, is superior.

Justices ponder Web software issues

WASHINGTON -- The Supreme Court expressed concerns Tuesday over allowing entertainment companies to sue makers of software that allows Internet users to illegally download music and movies, questioning whether the threat of such legal action might stifle Web innovation. During a lively argument, justices wondered aloud whether such lawsuits might have discouraged past inventions like copy machines, videocassette recorders and iPod portable music players -- all of which can be used to make illegal duplications of copyrighted documents, movies and songs. Justice Stephen G. Breyer said the same software that can be used to steal copyrighted materials offered at least conceptually "some really excellent uses" that are legal.

Consumer confidence dips slightly in March

NEW YORK -- Worries about jobs resulted in a second consecutive monthly decline in consumer confidence in March, a private research group said Tuesday. The consumer confidence index dropped 2 points to 102.4, down from a revised 104.4 in February, according to The Conference Board. Analysts had expected a reading of 103. The index had fallen by a revised 0.7 point in February. The March figure was the lowest since November, when the reading was 92.6.