Mattress rivals Tempur-Pedic and Sealy are becoming bedfellows. Tempur-Pedic, the 20-year-old leader in foam mattresses, is buying century-old rival Sealy for $228.6 million in cash. The acquisition comes as competition has increased in the mattress industry, with makers stepping up their marketing to help lure cost-conscious consumers into making big purchases.
sparks EU ire
The European Union is asking the World Trade Organization to impose up to $12 billion per year in sanctions on the U.S. as part of a long-running dispute over subsidies to Boeing and the French-based Airbus. The EU said the amount represented "damages suffered due to unfair and biased competition from the U.S. industry," which received government support.
its Lexus line
With a strong comeback under way in mainstream sedans, Toyota is hoping to rejuvenate its luxury Lexus brand by appealing to younger and more adventurous buyers. The automaker has recovered most of the U.S. market share it lost last year after the tsunami in Japan. Now it's counting on the Lexus brand to gain steam with sporty new versions of cars such as its flagship LS sedan.
Discover Financial Services said credit card use increased and more customers paid off their card balances on time in its fiscal third quarter but that its earnings still declined. The company reported net income of $621 million, or $1.21 per share, for the quarter ended Aug. 31, down 3 percent from $642 million in last year's third quarter.
Goldman to pay
$12M in SEC deal
Goldman Sachs has agreed to pay nearly $12 million to settle civil charges that one of its executives provided campaign services to a Massachusetts official in return for bond business. The Securities and Exchange Commission also charged ex-Goldman vice president Neil M.M. Morrison with trying to influence the awarding of state contracts through campaign work for a former state treasurer.
Nike 1Q net
Nike said its first-quarter net income fell 12 percent as higher sales of its clothing and footwear brands was offset by higher costs and increased ad spending. Revenue rose 10 percent, to $6.67 billion. Like other consumer products makers, Nike is facing high costs for materials and labor, as well as an uncertain economy in Europe and a slowdown in China.