COMPANIES

Eli Lilly and Co reported far better second quarter earnings on Wednesday on higher sales of its prescription drugs, and raised its 2009 earnings forecast

Delta Air Lines Inc , the world's biggest carrier, reported a quarterly loss on Wednesday and said it was not planning for any meaningful rebound this year as the recession hurts air travel.

Whirlpool Corp reported a lower second-quarter profit on Wednesday as sales at the world's biggest appliance maker crumbled in the global economic slowdown.

General Motors officials meet German government representatives on Wednesday to discuss takeover offers for Opel, with a potential row looming as they each appear to prefer a different bidder.

Boeing Co said on Wednesday its quarterly profit increased more than expected, driven by growth in defense programs.

Delphi Corp's ability to sell itself depends on four of its loss-making plants that buyers may need to inherit as part of a sale, the New York Post said on Wednesday.

China's third largest steelmaker WISCO signed an agreement with Australian Centrex Metals Ltd (CXM) on Monday for joint development of iron ore mines in southern Australia and other projects, state news agency Xinhua reported on Tuesday.

Global miners and steelmakers may replace the existing annual negotiations with a new quarterly-based iron ore pricing system, Wall Street Journal reported on Monday, which is expected to increase the volatility of steel prices and make the system more transparent.

Exelon Corp pulled its hostile $7.7 billion bid for NRG Energy Inc on Tuesday after NRG shareholders rejected an Exelon-backed slate of directors.

CIT Group Inc, in business for 101 years, has won a new lease on life, but it might buy the specialty finance company only a few more months.

Comparable store sales, also known as same-store sales, at Starbucks Corp. fell 5 percent in the company's third fiscal quarter, the coffee retailer said today.

United Airlines parent UAL Corp and Continental Airlines posted quarterly losses on sagging travel, and both carriers, like many other major U.S. companies, unveiled cost-cutting efforts for the second half of 2009.

China International Travel Service Corporation Limited got approval from the China Securities Regulatory Commission (CSRC) for an initial public offering (IPO) on the Shanghai Stock Exchange, the securities regulator said on Monday.

U.S. machinery maker Caterpillar Inc posted stronger-than-expected second-quarter earnings and raised its full-year outlook, citing signs of global economic stability, sending its shares up as much as 13 percent.

UnitedHealth Group Inc posted stronger-than-expected second-quarter profit on Tuesday, helped by growth in the insurer's plans for elderly and low-income Americans and in its drug benefit business, and its shares rose 2 percent.

The bankruptcy restructurings of General Motors Corp and Chrysler LLC have improved credit market access for auto suppliers, but the sector is far from healthy and requires close government monitoring, an Obama administration official said on Tuesday.

U.S. machinery maker Caterpillar Inc posted stronger-than-expected second-quarter earnings and raised its full-year outlook, citing signs of global economic stability, sending its shares up as much as 13 percent.

Google Inc would strengthen its mobile search service in China, the first strategic move since the company came under the Chinese government glare for providing links to pornographic sites, ChinaDaily reported on Tuesday.

Caterpillar's Big Surprise; Airlines Cut More Jobs; CIT on Brink

Beijing Automotive Industry Holding Corp is in talks with Fujian Motor Industry Group to replace it as the local partner in a commercial vehicle tie-up with Daimler AG (DAIGn.DE) in southeast China, a source said on Tuesday.

Auto companies posted steep losses and poor outlooks for the industry on Tuesday, suggesting recovery is some way off despite improving economic data and a stock market rally toward nine-month highs.

United Airlines parent UAL Corp and Continental Airlines posted quarterly losses on sagging travel, and both carriers, like so many other major U.S. companies, unveiled cost-cutting efforts for the second half of 2009.

Leading truckmaker Volvo (VOLVb.ST) and parts manufacturer Faurecia (EPED.PA) posted steep losses and warned of further pain across the auto sector in coming months, with no upturn likely before 2010.

As the auto industry race twists and turns over which metal to use in electric cars, the first lithium-powered sports car has hit the streets of Europe.

Chery Automobile Co, China's largest indigenous car maker, has resumed preparations for an A-share initial public offering as the country's securities regulator lifted its nearly 10-month ban on domestic IPOs due to a recovery in the country's stock market.

Commercial mortgages at U.S. banks have been failing at the fastest rate in nearly 20 years, the Wall Street Journal said, citing its own analysis.

Freddie Mac (FRE.P), the mortgage finance company seized by regulators in September, has chosen Charles

Bank of America's (BAC.N) Merrill Lynch is in talks with several firms including Blackstone (BX.N) and Apollo Investment Management to sell management rights of its $2.65 billion Asian Real Estate Opportunity Fund, a source with knowledge of the deal said.

Much of Corporate America has slashed costs to stay in the black during the recession, but wielding the knife too heavily could also remove the ability to grow in a recovery. If you cut into flesh long enough, eventually you find bone, said David Rosenberg, chief economist at Gluskin Sheff in Toronto. Cost cutting is not a bottomless pit.