In Brief
Services company growth pace slowsWASHINGTON — The pace of growth for U.S. services companies slipped a tad in January, but employment measures improved in a positive for the economy.The Institute for Supply Management, a trade organization of purchasing managers, said that its services index declined to 56.5 in January from 56.6 in December. Any reading above 50 signals growth.The services sector has now expanded for 85 straight months. The pace of growth for new orders slowed, causing the overall index to drop. But the employment measure advanced last month.There were 12 non-manufacturing industries that reported growth in January, including finance, construction, health care, retail and accommodation and food services.But five industries including real estate, transportation and warehousing and arts, entertainment and recreation said activity contracted.
Hershey expects sweeter returnsHERSHEY — Hershey’s fourth-quarter profit fell by nearly 50 percent as the chocolate company’s costs rose, but it said Friday that it expects a stronger year as it introduces new chocolates and snacks.The company recently began rolling out a chocolate bar stuffed with cookies called Hershey’s Cookie Layer Crunch. It also plans to grow its Krave jerky brand, which it bought in 2015, with more choices.Hershey expects earnings for full year to be between $4.72 per share and $4.81 per share, far above the $4.64 per share analysts expected, according to FactSet.
Factory orders up 1.3% in monthWASHINGTON — Orders to U.S. factories rose a moderate amount in December, closing out a second rough year for American manufacturers who have been battered by a strong dollar and a plunge in capital investment.The Commerce Department said orders to factories rose 1.3 percent in December. A key category that tracks business investment was up 0.7 percent, a hopeful sign that 2017 may be a better year for manufacturers as investment in the energy sector rebounds.
Mars explains Skittles issueNEW YORK — Mars said a miscommunication with a subcontractor led to a defective batch of its Skittles, reportedly on their way to becoming cattle feed, ending up scattered across a highway.The spill captured widespread attention after a Facebook post by a Wisconsin sheriff showed a road covered in the colorful candy. The sheriff wrote that they had fallen off the truck of a farmer who was going to feed them to cattle. Selling food byproducts for use in animal feed is not uncommon, but Mars had said that the factory that made the spilled Skittles was not approved to do so.The candy maker also said it only sells to third party processors that mix unused candy with other ingredients to make animal feed, not to individual farmers. Now Mars says the mishap was the result of miscommunication between a vendor that handles its waste management and a subcontractor. The company says it doesn’t believe there was “ill intent” and that “corrective action” is being taken.
