J. C. Penney said fourth-quarter net income fell 13% and forecast profits below analysts' estimates on reduced sales of winter coats and hats that had been cleared out off stores for spring merchandise before the weather turned colder in much of the U.S.

Profits declined to $477 million, or $2.09 a share, after a year-earlier tax benefit. Sales rose 7.4% to $6.67 billion as the company promoted its brands including a.n.a. and east5th. It said first-quarter profits would be about 6 cents below expectations. The stock fell $2.70 to $83.65.

Boom time for Asia
Japan's Nikkei stock index rose above 18,000 for the first time on renewed optimism for economic growth in the Asian region. It gained 195.58 to 18,108.79, the highest close since May 2000.

Also Hong Kong's Hang Seng Index hit a four-week peak in early trading before closing with a gain of 157.81 to 20,809.23.

Reversal of fortunes
OfficeMax said its turnaround program was taking hold as it swung to a profit in the fourth-quarter from a year-ago loss.

After paying preferred dividends, the company earned $57 million, or 76 cents a share, compared with a loss of $44.1 million, or 62 cents. Last year, the company was hampered by a $20.5 million loss from discontinued operations as well as higher rent and other costs. Revenues fell 8% to $2.26 billion. The stock rose $1.45 to $54.72.

Hitting the high seas
Disney is doubling its fleet of cruise ships in a business that has proven to be a highly popular and profitable.

Officials said the ships will each be two decks taller than the two existing Disney cruise ships, Disney Magic and Disney Wonder. They are expected to be ready by 2011 and 2012. It has not been determined where the ships will be docked or their routes.

Stocks, funds on the Web
Readers should visit nydailynews.com/business for the latest stock and fund prices.

The enhanced quotes found on the business page of the Daily News' Web site offer stock and fund charts and detailed investment information. The News prints prices for the 1,000 largest mutual funds in Your Money, found every Monday in the paper's center pullout.