NATIONAL

HUFFY FILES FOR CHAPTER 11 BANKRUPTCY PROTECTION

Huffy Corp., the bicycle maker beloved by generations of American children, filed yesterday for Chapter 11 bankruptcy protection, citing losses from a Canadian sports equipment company it acquired two years ago. Huffy’s losses have increased steadily in recent years, from $1.4 million in 2002 to $7.5 million in 2003. It has not filed quarterly financial reports in 2004. The beleaguered company’s stock also plummeted from $6.80 a share in December 2003 to 58 cents in August, when the New York Stock Exchange suspended trading because the company’s market value had fallen too low. With roots dating back to 1892, the company said it believes it will rebound by focusing again on bicycles. “I am confident that Huffy will emerge as a stronger and more competitive organization, well-positioned to succeed,” said John Muskovich, president and chief operating officer.

– Associated Press

IN THE COURTS

STEWART BROKER ASKS APPEALS COURT TO OVERTURN CONVICTION

Martha Stewart’s former stockbroker asked a federal appeals court on Wednesday to overturn his conviction, arguing “toxic” evidence against the celebrity homemaker hurt his right to a fair trial. Lawyers for Peter Bacanovic also told the 2nd U.S. Circuit Court of Appeals that the judge who oversaw the trial unfairly restricted his right to question witnesses and gave the jury misleading instructions. “Bacanovic’s trial alongside Martha Stewart was one of the most highly publicized criminal cases in recent memory, but it was not a fair trial for Bacanovic,” his lawyers wrote in a 93-page brief. Lawyers for Stewart were to file their own appeals papers yesterday evening. Those papers were not expected to be made public until Thursday morning. Bacanovic was convicted of conspiring with Stewart to lie to investigators about why Stewart sold 3,928 shares of ImClone Systems Inc. stock in 2001. Both were sentenced to five months in prison and five months of house arrest.

– Associated Press

OIL

CRUDE OIL RISES TO $55 ON REPORT OF HEATING OIL SUPPLY DROP

Crude oil futures rose to $55 a barrel after an Energy Department report showed that American inventories of heating oil fell for a third week. Stockpiles of the fuel declined 515,000 barrels, or 1%, to 49.5 million barrels, leaving supplies 11% lower than a year earlier. Crude oil inventories rose 1.2 million barrels to 279.4 million in the week ended October 15. Crude oil for November delivery rose $1.71, or 3.2%, to $55 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Oil reached $55.20, the highest intraday price since a record $55.33 on October 18. Prices were 81% higher than a year earlier. The November contract expires today. The more active December futures contract rose $1.74, 3.3%, to $54.38. In London, the December Brent crude futures contract rose $1.75, or 3.6%, to $50.52 a barrel on the International Petroleum Exchange. Brent futures reached $51.50 on October 12, the highest price since the contract began trading in 1988.

– Bloomberg News

AMR, DELTA, AND NORTHWEST AIR REPORT LOSSES ON RISING FUEL COSTS

American Airlines, Delta Air Lines Inc., and Northwest Airlines Corp., three of the four largest American airlines, posted third-quarter losses on fuel costs that rose at least 50% for each carrier. AMR Corp., whose American is the world’s largest carrier, had a net loss of $214 million, or $1.33 a share, compared with income of $1 million in the year-earlier period. Delta, the third-largest American carrier, lost $646 million, or $5.16, and Northwest posted a loss of $38 million, or 54 cents. “It’s pathetic,” said Ray Neidl, a Calyon Securities USA analyst in New York. “Oil prices at over $50 a barrel are precluding this industry from returning to profitability.” Fuel costs are rising as the major carriers have been unable to increase fares because of competition from low-cost carriers such as Southwest Airlines Co., which have lower labor costs. Hurricanes also cut revenue, carriers said. Fuel expenses rose 51% at AMR, 63% at Delta, and 57% at Northwest. Every $1 increase in oil prices probably means the industry loses another $100 million, Mr. Neidl said. “The carriers at this point now have to cut other costs as sharply as possible and as quickly as possible,” he said. “However, if oil prices stay high and ticket prices can’t rise anymore, then airlines will start to shrink and liquidate.”

– Bloomberg News