Business Briefing

UPS Inc., the world's largest shipping carrier, said Wednesday it has ordered eight new freighters from The Boeing Co. to support its international growth. Terms of the deal for the Boeing 747-400 freighters, which will be delivered in 2007 and 2008, were not disclosed. General Electric will provide engines for the new aircraft. UPS already has 20 Boeing MD-11 freighters that it uses on international routes. It said the new 747-400 aircraft can handle a larger payload than the MD-11 and will be used as international volume grows.

Zumiez's profit more than triples

Zumiez Inc., the Everett-based sports apparel and equipment retailer, beat Wall Street expectations on Wednesday by more than tripling its second-quarter profits compared with the same period last year. During the quarter ended July 30, Zumiez's net income jumped to $848,000, or 6 cents per diluted share, from $239,000, or 2 cents per share. The 150-store chain's net sales rose 28.7 percent to $39.4 million, based on an 11.3 percent increase in same-store sales at its primarily mall-based locations.

12th & Madison project outlined

A total of 30,000 square feet of retail and restaurant space, 66 lofts and 100 apartments will open by early 2007 at the corners of 12th Avenue and East Pike Street, and 12th Avenue and East Madison Street.

The 12th & Madison project, developed by Ted Schroth of GTS Development, will feature The Trace Lofts, an upscale 42-loft renovation of a 1920s warehouse, and the North Building, 100 high-end apartments and 8,000 square feet of retail and restaurant space.

The 12th & Pike project, developed by Liz Dunn of Dunn +Hobbes, will feature 24 lofts over retail space in the Marketplace Lofts and the renovated Piston & Ring building, where Osteria La Spiga is relocating. [Note: The developers of the two projects were switched in the original version of this item but have been corrected online]

Larry's adds natural beef and chicken

Larry's Markets introduced all-natural beef and chicken on Wednesday to four of its six locations. The hormone- and antibiotic-free beef, which was raised by Painted Hills Natural Beef in Fossil, Ore., on a 100 percent vegetarian diet of barley, alfalfa and corn, is being sold at its Queen Anne, Bellevue, North Seattle and Kirkland locations.

The chicken, dubbed Smart Chicken because it is cooled by air rather than water (maintaining the flavor and moisture), will be sold in the Tukwila store as well as the four locations listed above.

NATIONAL NEWS

Morgan Stanley to hold on to Discover

NEW YORK -- Wall Street firm Morgan Stanley said Wednesday it will not spin off its Discover Financial Services credit card arm, as was pondered under former Chief Executive Phil Purcell. Critics have claimed the credit card division has been only modestly profitable and unrelated to the company's high-end financial services.

Discover has generated strong cash flow and consistent earnings for the company, however, giving Morgan Stanley liquidity for its other investment banking, asset management and brokerage divisions.

Progress noted in Northwest Air talks

MINNEAPOLIS -- Northwest Airlines and the union that represents its mechanics reported some progress Wednesday in talks to head off a strike, but a union spokesman said that "the Grand Canyon" still separates the two sides. Northwest representatives and the mechanics union have been negotiating in Washington since Monday morning, in the hopes of heading off a strike that could start at 12:01 a.m. EDT Saturday.

Northwest is seeking $1.1 billion in annual savings through concessions from its employees, including $176 million from mechanics. It's asking mechanics to accept a 25 percent pay cut, and wants to lay off about 2,000 of the 4,500 mechanics represented by the union.

Former Wal-Mart exec challenges suit

Former Wal-Mart Stores Inc. Vice Chairman Thomas Coughlin asked a court this week to dismiss a suit by his old employer, which accuses him of abusing his expense account. Wal-Mart, the world's largest retailer, sued Coughlin, 56, for fraud in July, claiming that for five years starting in 1997, he looted the company of hundreds of thousands of dollars to reimburse himself for personal items ranging from underwear to dog food.

Chairman quits Atlantic Records Group

Warner Music Group Corp., the world's fourth-largest record company, said Wednesday that Jason Flom resigned from its Atlantic Records Group after 16 months as chairman and chief executive. It didn't provide a reason. Craig Kallman, Atlantic Records' chief operating officer, replaced Flom, the company said today in a statement distributed by MarketWire. Lava Records, a joint venture between Flom and Atlantic, will become a wholly owned unit of Atlantic, New York-based Warner Music also said.

WORLD NEWS

Mexican airlines attract foreign buyers

Mexico's government said Wednesday that it plans to complete the sale of the nation's two biggest airlines by mid-November, said Andres Conesa, chairman of both carriers. Conesa said in a radio interview that 30 percent of the companies that formally expressed interest in Aeromexico and Mexicana are foreign.

Under Mexican legislation, foreigners are limited to a 25 percent stake in airlines, so they must team up with Mexican partners, he said.

OPEC to raise output, tap lighter grades

OPEC, which produces about 40 percent of the world's oil, said Wednesday that its members will boost production capacity during the next 18 months, placing greater emphasis on lighter grades that refiners prefer.

The Organization of Petroleum Exporting Countries expects to increase crude-oil capacity by 2.1 million barrels a day during 2005 and 2006. Of that, 49 percent will be so-called light crude, 43 percent medium and 8 percent heavy.

SHIPPING NEWS

Vessels due at the Port of Seattle tomorrow, according to the Marine Exchange of Puget Sound, include GAO He, from Yokohama, Japan, at Terminal 18; and Mercury, from Prince Rupert, B.C., at 66.

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