First Bankshares Inc., parent of SuffolkFirst Bank, reported Friday that its 2008 net income fell 60 percent, largely because of an increase in its provision for loan losses.

The Suffolk banking company said its net loan losses in 2008 were a negligible $90,000. However, it boosted its provision for loan losses from $111,000 in 2007 to $829,000 last year because of the uncertain economic environment, First Bankshares said.

Its net income for 2008 fell to $245,000 from $607,000 in 2007. Earnings per share were 11 cents, down from 27 cents. Its net loans grew 11 percent in 2008 to $115.56 million. However, its earnings growth was restrained by the pressure from rapidly falling interest rates last year and difficulty repricing its deposits as quickly, First Bankshares said. Its net interest margin, a key measure of bank profitability, narrowed to 2.84 percent from 3.27 percent in 2007.

- Tom Shean, The Pilot

Coca-COla to lose its 'classic' label

NEW YORK | Neither "New" nor "Classic," Coke is simply itself again.

Two decades after adding the designation, the Coca-Cola Co. is removing the word "Classic" from its prominent location on the flagship cola sold in the United States, a company spokesman said Friday.

"The reason for being, for 'Classic' as a descriptor, has all but disappeared," spokesman Scott Williamson said.

The "Classic" tagline was added in 1985, when the company introduced a formula that consumers called "New Coke." New Coke never caught on and was sold sparingly until it was dropped in 2004.

Williamson said Coca-Cola decided to make the change as it launches a new global marketing campaign it's calling "Open Happiness."

Coal industry now feeling the effects

CHARLESTON, W.Va. | Anemic spending has begun spreading to the usually recession-resistant coal industry.

Producers have slashed production, idled mines and cut jobs less than a year after soaring coal prices left the industry struggling to find enough workers.

Two more big U.S. producers - Arch Coal Inc. and Foundation Coal Holdings - announced cutbacks Friday. Already, major producers such as Peabody Energy, Consol Energy, Alpha Natural Resources, Alliance Resource Partners and Patriot Coal have begun to retrench.

At least 1,310 jobs have been trimmed at various Appalachian mines. Arch says it does not expect any layoffs, though it has trimmed up to 14 million tons of planned production in 2009.

Caterpillar adds 2,110 to job-cut list

Heavy equipment maker Caterpillar Inc. announced 2,110 new job cuts Friday as it scales back production amid a world economic slowdown.

The world's largest maker of mining and construction machinery said the layoffs were at three Illinois plants.

The new layoffs came on top of 20,000 job cuts announced earlier this week, when the Peoria, Ill.-based company reported a 32 percent drop in fourth-quarter profit.

Also Friday, A.H. Belo, publisher of The Dallas Morning News and other papers, said it would eliminate 500 jobs, or one-seventh of its work force. The Los Angeles Times, owned by the Tribune Co., said it would cut 300 jobs, including 70 positions in its newsroom staff of more than 600, a drop of 11 percent.

Gannett reports drop in earnings

USA Today publisher Gannett Co. reported lower preliminary fourth- quarter earnings Friday, but even those profits will be wiped out once the company takes pretax write-downs of as much as $5.9 billion to reflect the declining value of its newspapers.

McLean-based Gannett, the nation's largest newspaper publisher, said preliminary net income fell to $158 million, or 69 cents per share, in the fourth quarter, down 36 percent from a year ago, as ad revenue continues to take a beating because of the recession.

In other earnings news:

The bad news continued to pile up for auto suppliers Friday. American Axle & Manufacturing Holdings Inc., Lear Corp., Gentex Corp. and Autoliv Inc. all reported fourth-quarter losses.

- From wire reports

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