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Tuesday, October 04, 2005

Forbes.com - Magazine Article

Forbes.com - Magazine ArticleKatrina Takes A Toll On BP
Jennifer Lee, 10.04.05, 10:20 AM ET

In the headlines this morning, Anglo-American oil giant BP says it will miss its third-quarter profit goal by more than $700 million.

The diversified energy company says damage and recovery costs from Hurricanes Rita and Katrina's devastation in the Gulf region of the U.S. are to blame. The company says it's short more than 300,000 barrels per day for distribution.

U.S. stocks opened mixed, while crude oil prices slipped on speculation that the U.S government will release emergency stock piles of heating oil to compensate for the supply-chain damage caused by the hurricanes.

In other company news, Walgreen's said same-store sales for September rose 7.7%. The largest U.S drug-store chain's total sales topped $3.5 billion during the month.

Southwest Airlines (nyse: LUV - news - people ) said passenger traffic was up almost 19% for September compared to a year ago. For the third quarter, the low-cost leader said overall traffic rose 15.5 %. Southwest has weathered the energy spike better than its competitors because of a successful fuel-hedging program.

In other news, German sportswear giant Addidas-Saloman says it will move forward with its $3.8 billion acquisition of Reebok International (nyse: RBK - news - people ) after no objections were raised by the U.S antitrust authorities. The deal is expected to be official by early 2006.

And be sure to check out more of the Forbes.com Video Network. Forbes national editor Bob Lenzner interviews legendary Morgan Stanley (nyse: MWD - news - people ) market strategist Byron Wien.

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