FCC telecom regulations receive legal setback

In a setback for federal regulators, U.S. Solicitor General Theodore Olson has decided against an appeal to the Supreme Court to revive new rules aimed at increasing competition for local telephone service, according to the Federal Communications Commission.

The agency issued a statement Wednesday saying that it had been informed by Olson’s office of his decision. The commission still can appeal on its own, but the Supreme Court would have been more likely to consider the challenge had the Justice Department joined the appeal.

The FCC issued rules last August allowing states to require that the four major regional phone companies — Verizon, BellSouth, Qwest and SBC — lease parts of their networks at low prices to competitors.

The regionals balked, saying the rules left them at a competitive disadvantage, and in March, the U.S. Court of Appeals for the District of Columbia threw out the rules.

Resignation

Coke president to leave

The Coca-Cola Co.’s No. 2 executive is stepping down after being passed over for the top job at the world’s biggest beverage maker, the latest in a string of high-level departures.

The company said Wednesday that Steve Heyer, the company’s president and chief operating officer, will leave by mutual agreement after a transition period of several months.

Coca-Cola shares slid 85 cents to close at $51.76 on the New York Stock Exchange.

Transportation

Union Pacific earnings projected to lose steam

Rising fuel prices and costs of hiring train crews and improving delivery speed will cut into second quarter profits at the nation’s largest railroad, Union Pacific Corp. said Wednesday.

Earnings will range from 60 cents to 65 cents per share in the second quarter ending June 30, compared with $1.05 per share in the same period last year, Union Pacific said.

Shares of Union Pacific fell $1.21, about 2 percent, to close at $58.78 Wednesday on the New York Stock Exchange.

Earnings

Smithfield profits rise

Smithfield Foods Inc., the nation’s largest hog producer and pork processor, reported sharply higher earnings in its fiscal fourth quarter, mainly due to increases in the company’s pork production operations and rising hog prices.

The Smithfield, Va.-based company said Wednesday that net income for the quarter that ended May 2 soared to $122.7 million, or $1.09 per share, from $5.1 million, or 5 cents a share, in the year-earlier period.