Corporate report

Capital One Financial Corp. -- The company said it will acquire Chevy Chase Bank for $520 million in cash and stock, expanding its presence in its own backyard. Under the terms of the agreement, McLean, Va.-based Capital One will use $445 million in cash and 2.56 million shares of Capital One valued at $75 million, or about $29.30 per share. Chevy Chase Bank, which has about $11 billion in deposits, operates branches in Maryland, Virginia and Washington, D.C. Capital One had about $98.9 billion deposits as of Sept. 30. The company's shares were selling for $30.99 at the end of regular trading Thursday, down 60 cents.

Starbucks Corp. -- The coffee retailer's chief financial officer says the company does not expect to meet Wall Street's profit expectations in the current quarter. CFO Troy Alstead said that he could not provide specific guidance, but that same-store sales have deteriorated so far in the period, the company's fiscal first quarter. During the first few weeks of the quarter, same-store sales declined 9 percent. Shares were $8.61, down 3 cents.

Smithfield Foods Inc. -- The pork producer's second-quarter profit fell to $4.2 million, or 3 cents per share, from year-ago profit of $17.4 million, or 13 cents per share. Latest-quarter results included a gain on the $580 million sale of its beef processing and cattle feeding operations. Sales rose to $3.15 billion from $2.75 billion. Analysts expected a loss of 10 cents per share on revenue of $3.2 billion. Shares were $7.44, up $1.31.

Merck & Co. -- The drugmaker forecast a 2009 profit of $3.15 to $3.30 per share, excluding one-time items, on sales of $23.7 billion to $24.2 billion. Analysts expected a profit of $3.52 per share and revenue of $24.59 billion in 2009. Shares were $25, down $1.46.

DuPont -- The company will cut 2,500 jobs and said it will not turn a profit in the fourth quarter as a severe slowdown in the automotive and construction markets eats away at chemical sales. DuPont will trim 4,000 contractors by the end of this year, with additional contractor reductions expected in 2009. The company also plans to implement work schedule reductions and will redeploy more than 400 employees on projects to reduce working capital and operating costs. DuPont expects to take a fourth-quarter, pretax charge of about $500 million, or 40 cents per share, for the restructuring plan, resulting in a pretax earnings increase of about $130 million for 2009. Shares were $23.69, up 8 cents.

Toll Brothers Inc. -- The homebuilder's fourth-quarter loss narrowed to $78.8 million, or 49 cents per share, including $175.9 million worth of pretax write-downs. That's slightly better than the year-ago loss of $81.8 million, or 52 cents, on $314.9 million write-downs. Excluding items, profit totaled 23 cents per share. Revenue fell to $698.9 million from $1.17 billion a year ago. Analysts expected a loss of 46 cents per share on revenue of $681.4 million. Shares were $20.55, up $1.32.

YRC Worldwide Inc. -- The chief executive of the country's largest trucking company by revenue said he expects a proposed union wage reduction and other planned cost savings to be "more than enough to ride out the economic downturn." President and Chief Executive Bill Zollars said the $225 million to $250 million savings from a planned wage reduction, combined with another $200 million in savings from an ongoing integration of YRC's Yellow and Roadway units, and expected concessions by nonunion employees, will be enough to keep the company from running out of cash or violating debt obligations. Shares were $5.37, up 53 cents.

AbitibiBowater Inc. -- The world's largest newsprint maker said it would close or idle at least four paper mills and cut 1,100 job in response to falling demand. The Montreal-based company, whose stock has fallen about 97 percent year to date, faces a deteriorating customer base as newspapers struggle and newsprint demand plummets. In October, demand fell 18.2 percent. About 800 jobs will be permanently cut and about 300 jobs will be indefinitely cut. Shares were 45 cents, down 4 cents.