Air Force chooses Boeing for new refueling tankers

The Air Force on Thursday chose Boeing Co. to build its new fleet of aerial refueling tankers, news met with delight and rejoicing by Washington state aircraft workers and politicians.

The $35 billion contract is a major boost not just to the company but to the ailing economies in the Puget Sound area and in Wichita, Kan., where the planes will be built. Thousands of jobs are expected to be created.

Boeing will base the tankers on its 767 widebody jetliner, which is assembled at its Everett, Wash., plant. The contract initially calls for 179 of the planes, extending work for the 767 line for years.

Boeing competed with the European Aeronautic Defence and Space Co. for the deal.

Target sees fourth-quarter profit rise nearly 11 percent

Solid holiday sales and improvements in its branded credit card business helped Target’s fourth-quarter profit rise almost 11 percent, but a company official cautioned Thursday that the economy is a “wild card.”

The discounter said two major initiatives — offering more food and giving shoppers a 5 percent discount if they use Target Corp.’s branded cards — would help drive a key measure of revenue growth for this year to its highest level in several years.

Target, based in Minneapolis, is forecasting strong growth overall. It expects its annual revenue to top $100 billion in six or seven years, compared with $67 billion last year, and it expects its earnings per share to double in that period.

AIG reports $11.2 billion profit for fourth quarter

Bailed-out insurer AIG is reporting a profit of $11.2 billion for the fourth quarter of 2010 from gains it made from selling and spinning off two of its life insurance units.

Last month, American International Group Inc. laid the groundwork for the government to start selling its 92 percent stake in the company. AIG had become a poster child of the excessive risk that led to the financial crisis, requiring a $182 billion bailout by the U.S. government.

AIG earned $16.60 per share in the fourth quarter. In the same period last year, the company reported a loss of $8.87 billion, or $65.51 per share.

Porsche says investigation may nix Volkswagen deal

Porsche SE says an expanded legal investigation of the sports carmaker’s former top executives might delay or even jeopardize a planned full merger with Volkswagen AG, its biggest shareholder.

Stuttgart prosecutors said Thursday that former Porsche executives are now under investigation for breach of trust over allegations they took on risks that threatened the company’s survival in a takeover battle.

Porsche said the prosecutors’ investigation, which was first started in 2009, will be concluded at the earliest in 2012, making the planned conclusion of the merger with Volkswagen this year unlikely. It said further delays would reduce the chances of the full merger altogether.

Buffett’s letter likely to be must reading on Saturday

Many investors will spend Saturday morning reading Warren Buffett’s annual letter to Berkshire Hathaway shareholders.

Berkshire’s billionaire chairman and CEO is widely admired for his investing success and plainspoken method of explaining complex concepts.

Buffett’s letter is well read in the business world because so many people follow the Oracle of Omaha, and because he often addresses general interest topics, like the economy.

Buffett’s letter and the 2010 annual report for his Omaha-based company will be posted online at www.berkshirehathaway.com on Saturday morning.