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An investment fund associated with Amalgamated Bank, which bills itself as "America's Labor Bank," made the proposal because of Lexmark's performance during the past year, attorney Con Hitchcock said.

The company has seen its stock price fall to lows near $26 in recent months from highs in the $70s in late 2006. Its performance ranked it near the bottom of an index monitored by Amalgamated Bank, said Hitchcock, who presented the shareholder proposal.

The proposal is only a recommendation, so Lexmark is not required to adopt it.

Chairman and chief executive Paul Curlander told Hitchcock at the conclusion of the meeting that the board will "consider this input very seriously" and "right now, that's really all we have to say."

Shares of American Water (NYSE: AWK) closed at $20.60, down from their initial price of $21.50 a share.

"It's typically not a good sign for the first close," said Josef Schuster, founder and CEO of research firm IPOX Schuster.

Schuster said the bearish response wasn't surprising as American Water owner RWE AG initially intended to sell 6 million shares more than the 58 million that were offered.

The shares amount to 36 percent of American Water. Underwriters will be granted a 30-day option to buy as many as 8.7 million additional shares, the company said.

The median price of a new home in March, compared with a year ago, fell by the largest amount in nearly four decades.

The Commerce Department reported Thursday that sales of new homes dropped by 8.5 percent last month to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991.

The median price of a home sold in March dropped by 13.3 percent compared with March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970.

The dismal news on new home sales followed earlier reports showing sales of existing homes fell by 2 percent in March. Housing, which boomed for five years, has been in a prolonged slump for the past two years with sales and home prices falling at especially sharp rates in formerly boom areas of the country.

The No. 2 U.S.-based automaker also said its latest round of early retirement and buyout offers netted 4,200 hourly workers, fewer than Ford had targeted.

It was the company's first profitable quarter since the second quarter of 2007, when it earned $750 million. Ford reported a full-year loss of $2.7 billion last year, and cautioned that the rest of this year will be tough.

"The remainder of 2008 will be a challenge but we are cautiously optimistic despite the external challenges," CEO Alan Mulally said in a statement. "Our plan is working."

Ford also lowered its industrywide U.S. vehicle sales forecast for the full year to a range of 15.3 million to 15.6 million. In January it had expected full-year sales of 16 million.

A rise in the dollar pushed prices for oil and other commodities lower, helping to send the Dow Jones industrials up more than 160 points.

Sellers held sway early in the session after the government reported sales of new homes fell last month to the lowest level since 1991. While the decline was expected, it appeared to stir concerns that the hangover from the housing bubble would remain an intractable obstacle for the economy.

The early decline in trading wasn't surprising, as investors tried to square their concerns about forecasts from Amazon.com Inc. and Starbucks Corp. with the drop in weekly unemployment claims and the results from Ford.

Some of the outlooks issued by companies in recent days have underscored a worrisome notion that the economy might enter a prolonged period of sluggishness, while others signaled for some investors that Wall Street had been overly dour in its assessment of the business climate.

The outlooks underscored a worrisome notion that the economy could show a more prolonged slowdown than some had expected.

Wall Street is awaiting quarterly reports from names like ConocoPhillips, Motorola Inc. and PepsiCo Inc. due early Thursday.

Investors awaiting another onslaught of quarterly numbers are also keeping watch for some of the week's most notable economic figures. Among the data, the Commerce Department is expected to report that sales of new homes fell in March and weigh in with findings on sales of durable goods - big-ticket items like refrigerators, cars and computers.

But early Thursday investors appeared to focus on the lackluster outlooks issued by Apple and Amazon. Apple released a third-quarter profit forecast that missed Wall Street's forecast, while Amazon predicted lower operating income than investors expected.

The Public Service Commission announced Wednesday that its ruling on a request from Kentucky American Water to build a treatment plant on the Kentucky River will be released at 10 a.m. Friday.

The plant, if approved, would include a pipeline to bring water to Lexington.

There has been strong opposition to the pipeline, mostly from people who live along the proposed route.

Louisville Water Co. intervened in the PSC case, pushing its proposal for a pipeline to bring treated Ohio River water from Jefferson County.

But first, lenders would have to agree to wipe out part of their debt. And the borrowers would have to show they could afford the new mortgage. They also would have to agree to share any future profits on the home with the government.

The plan would be a massive expansion of the Federal Housing Administration, the Depression-era mortgage insurer. The FHA would take on $300 billion in new loans for as many as 1 million distressed homeowners, most of whom otherwise wouldn't qualify for a government-backed loan.

Taxpayer dollars would be at risk should borrowers default on their new mortgages. The FHA, however, would have some non-taxpayer money to cover losses. The agency would collect a 3 percent fee on the refinanced loans, as well as annual 1.5-percent premiums, and share a portion of borrowers' proceeds if the property is refinanced or sold in the future.

The measure by Rep. Barney Frank, D-Mass., House Financial Services Committee chairman, is expected to get committee vote next week. A similar bill is taking shape in the Senate. The Bush administration is backing the same concept, although on a smaller scale.

But as the tough times that have struck the auto industry were described, another speaker pointed out that those tough times mean big bucks for the companies he represents.

"Whenever sales go flat, aftermarket sales go up," said John Waraniak, who represents thousands of small companies that make everything from fuel additives to the kind of stuff shown on MTV's Pimp My Ride.

Because when economic pressures hit car owners, they tend to "keep their vehicle and just upgrade it," he said after addressing the ballroom of visitors at the Marriott Griffin Gate.

And that's the benefit to the 7,200 companies in the Specialty Equipment Market Association.

TOYOTA BOSHOKU TO ADD 170

Toyota Boshoku America Inc. said Wednesday that it plans to hire 170 more employees at its Erlanger headquarters by 2009. The company now employs 100 people at the office. An expansion at the site is expected to be complete by June 1. The company said the new hires will push its payroll to nearly $20 million. It's been approved for up to $1.7 million in state tax incentives for the expansion. The company manufactures interior auto parts for automakers including Toyota and General Motors.

OWENSBORO, PHILPOT UNITS TO BE COMBINED

The Owensboro-based Hines Group said its Premium Allied Tool manufacturing plant in Philpot will grow and consolidate with operations at its Owensboro Manufacturing plant. The 152,000-square-foot Owensboro Manufacturing plant will go on the market once the move is completed by mid-2009, said Kevin Booth, president of the Hines Group. Booth said the additional space is expected to be between 10,000 square feet and 25,000 square feet. The Hines Group has 200 employees at Premium Allied and 50 at Owensboro Manufacturing. The companies' customers include producers of parts for automotive, consumer electronics, sporting goods and industrial machinery.

Their conversations with management came as Lexmark announced first-quarter earnings that exceeded expectations but continued to show a trend for laser: revenue is climbing but profit is falling.

In the first quarter, revenue rose 1 percent for the division, but income fell 7 percent. And the quarter also saw another trend continue -- shipments of laser printers fell, just as they have in all but one of the last five quarters.

Lexmark says it's shipping the products that matter -- higher-end printers whose owners print more pages and use more toner.

Lexmark's real profit lies in toner sales. It noted that sales of color laser products were up in the double-digit percentage range in the first quarter.

The company's dump truck drivers are turning off their engines and going to a break room, instead of sitting in the vehicles with motors running while waiting on loads.

"The trucking industry is just tough right now because of the price of fuel," said Mitch Haynes, vice president and co-owner of the trucking firm.

While some drivers are bemoaning gasoline prices of $3.59 a gallon or more, they've got it better than truck drivers, who are paying more than $4 a gallon for diesel.

Elbert Noel, an independent truck driver from Zoe in Lee County, usually fills up his tractor-trailer rig at "mom and pop shops" because they usually charge 5 or 6 cents less per gallon for diesel than other fuel stations, he said. He also buys diesel at stations that give a discount for paying cash.

Discounts on admission fees. Your company's human resources department might offer deals for specific attractions. Also try local grocers, travel magazines, travel guidebooks and Web sites. Don't forget your credit card company and membership groups. AAA members can save 23 percent on Busch Gardens season tickets for a group of four or more.

Consider Internet and cell phone roaming costs. Many hotels charge $10 to $25 a day for Internet access, so if you must go online, see whether there's a nearby library that has public computers. And instead of cell phones, consider calling cards.

Bring your own snacks and beverages. And stay away from the minibar. If you forget shampoo, toothpaste or the like, remember that some hotels offer such items for free.

Avoid renting a car. In addition to the rental cost, many hotels charge a hefty parking fee. Use public transportation and ask about free hotel shuttle service.

The sell-off accelerated and shares of other airlines dropped after Delta Air Lines Inc. CEO Richard Anderson said in Washington that in the face of record fuel prices domestic carriers would need to raise fares by 15 percent to 20 percent just to break even. At the same time, crude oil prices jumped by more than $2 and neared the once-unimaginable $120-a-barrel mark.

Anderson said higher fares would probably erode demand for air travel, and prompt carriers to further reduce their schedules.

UAL's loss, in what it called an "extraordinarily difficult" environment for airlines, was the biggest since the nation's second-largest carrier emerged from bankruptcy in 2006 and worse than Wall Street expected. Shares in the company plummeted more than 35 percent to close at $13.55 Tuesday, after setting a new low of $12.78.

"An airline ticket has got to reflect the full cost of fuel," Delta Air Lines Inc. CEO Richard Anderson told reporters, adding that such an increase was likely to depress demand and prompt carriers to further trim their flight schedules.

Cost-cutting measures "have largely been exhausted," Northwest Airlines Corp. CEO Doug Steenland said.

Since Dec. 20, carriers have raised fares nine times, according to BestFares.com, and a number of airlines in recent weeks have also raised fees for checking a second bag and other amenities.

When asked if a combined Delta-Northwest would be profitable in its first year, Anderson returned to a common theme: "It will all be a product of fuel prices ... and stay tuned for earnings tomorrow and you'll see what a dramatic effect it's had."

Results came out after the market closed and Apple shares fell $1.68, about 1 percent, to $161.21 at the open of trade Thursday.

While Apple's sales jumped 43 percent and profits rose 36 percent, higher than analyst estimates, lower-than-expected guidance for the third quarter held the stock down.

Apple shares are trading well below their 52-week high of $202.96 set in December. Worried that economic distress is pinching consumers' ability to pay for Apple's premium-priced products, investors lopped off 40 percent from the stock's value in January and February, though it has rebounded considerably since then.

Apple is considered especially vulnerable to slower domestic consumer spending because of its stronger presence in the U.S. than overseas, and because its computers and gadgets typically carry higher price tags than competing products.

Triarc Companies Inc., which is owned by billionaire investor Nelson Peltz, will pay about $26.78 per share for the company, which has about 87 million shares outstanding. The price is a premium of 6 percent from the company's closing price of $25.32 Wednesday.

Under the terms of the deal, shareholders at Wendy's, the nation's No. 3 hamburger chain, will receive 4.25 shares of Triarc Class A stock for each share of Wendy's stock they own.

Atlanta-based Triarc said its shareholders will have to approve a charter amendment in which each share of its Class B stock will be converted into Class A stock.

Triarc said it will also change its name to include the Wendy's name.