In Short

A round-up of today's business news in brief

APN expects to show net profit of up to 58m

APN News and Media expects to end the year with net profit after tax in the range of Aus$90-95 million (€55-€58 million).

The company said that if current market conditions continued, it was likely that it would have earnings before interest and tax in the range of A$180-A$190 million.

The net profit forecast is in line with analyst consensus, which predicted A$94 million.

“Overall trading continues to show improvements, especially in publishing and outdoor and although, as should be expected, some weeks remain inconsistent, we are pleased to see overall quarter four trading returning to normal trends,” said chief executive Brendan Hopkins.

Independent News and Media has a 32.2 per cent stake in APN.

B of A to waive privileges on Merrill

Bank of America has agreed to waive legal privileges linked to its purchase of Merrill Lynch, in a step that could force the bank to hand over more details of how much it knew when it bought the investment bank, according to federal regulators.

The agreement, still subject to court approval, would allow the US Securities and Exchange Commission to look at more details concerning the bank’s failure to disclose information to shareholders about Merrill Lynch’s performance and pending losses.

Last month, a federal judge rejected Bank of America’s $33 million settlement with the SEC, which alleged it misled investors about $3.6 billion of bonuses paid to Merrill employees. – (Reuters)

Revenue down at Johnson Johnson

Johnson Johnson, the world’s largest healthcare company, reported lower revenue than analysts expected on slowing sales of drugs and consumer items.

Third-quarter revenue fell 5.3 per cent to $15.1 billion. Sales of medical devices didn’t advance enough to counter declining sales of drugs and consumer items, hurt by generic competition and slower spending in the recession.

Earnings beat analyst estimates by seven US cents, helped by lower research and marketing spending.

Net income increased to $3.35 billion, or $1.20 a share, from $3.31 billion, or $1.17 a share, a year earlier. Johnson Johnson also raised its 2009 earnings forecast to $4.54 to $4.59 a share, up from $4.45 to $4.55 a share. – (Bloomberg)

Biomass power station proposed

A proposal to develop a £100 million (€107 million) biomass power station in Co Antrim could create up to 300 construction jobs and inject £25 million into the local economy, according to the promoters of the scheme.

Rose Energy has applied for planning permission to develop the power station – which will use poultry litter as fuel – near Glenavy, which is located in a designated area of outstanding beauty.

The promoters, which include the privately owned Dublin-headquartered group, Mercury Engineering, and the Austrian Energy Environment group, claim it could deliver a long-term boost for the North if it secures planning permission.

But objectors to the project say it is “ill-considered and fundamentally flawed”.

Telco supplier goes into liquidation

A telecom equipment supplier which employs 64 staff in Dublin and Athlone has gone into liquidation. Ken Fennell was appointed as provisional liquidator to Babcock Networks Ireland in the High Court on Monday and hopes to sell the business as a going concern.

The company provides services to multinational phone manufacturers, including Nokia and Motorola. However, it is heavily reliant on Ericsson, with 85 per cent of its work carried out for the Swedish firm.