BUSINESS BRIEFS
Apple profit rises 36%, but forecast sends stock down
Advertiser Staff and News Services
SAN JOSE, Calif. — Apple Inc.'s fiscal second-quarter profit jumped 36 percent on blistering sales of Macintosh computers, but the company forecast lower-than-expected earnings and its stock price tumbled as much as 5 percent.
The Mac and iPod maker is believed to be especially vulnerable to slowing consumer spending in the United States because of its strong presence here versus overseas.
Apple shares fell $2.31, or about 1 percent, to $160.58, in after-hours trading. The stock had fallen nearly 5 percent earlier. It had closed up $2.69, or 1.7 percent, at $162.89 before its earnings were reported. But the latest results showed that it was firing on all cylinders during the first three months of the year.
AMAZON RESULTS SIMILAR TO APPLE'S
SEATTLE — Web retailer Amazon.com Inc. said yesterday its first-quarter profit rose 29 percent, helped by solid sales in the U.S. and abroad.
But seemingly lower operating income guidance for the full fiscal year pushed shares down $3.70, or 4.6 percent, to $77.30 in after-hours trading. The stock had closed up $1.40 at $81.
Quarterly earnings climbed to $143 million, or 34 cents per share, from $111 million, or 26 cents per share, in the same period last year.
Those results beat Wall Street's expectations. Analysts surveyed by Thomson Financial had forecast a profit of 32 cents per share.
Revenue increased 37 percent to $4.14 billion from $3.02 billion in the year-ago quarter.
BOFA DEFENDS COUNTRYWIDE BUY
CHARLOTTE, N.C. — Beleaguered Bank of America Corp. shareholders pleaded yesterday with the bank's chief executive not to proceed with a $4 billion acquisition of distressed subprime mortgage lender Countrywide Financial Corp.
Shareholders told CEO Ken Lewis at the Charlotte-based bank's annual meeting that they were concerned about the company's position in a weakened economy.
Lewis acknowledged the housing crisis wasn't over but said Bank of America paid a fair price for Countrywide and continues to perform deep due-diligence.
The 2 1/2-hour meeting came two days after the nation's second-largest bank reported a 77 percent drop in first-quarter profit of $1.21 billion, largely because of missed payments on credit cards and home loans.
BOEING SURPRISES WITH PROFIT SURGE
CHICAGO — Boeing Co.'s first-quarter earnings surged a stronger-than-expected 38 percent on a modest 4.1 percent revenue upturn, as the Chicago aerospace giant's profit momentum continued to grow despite development difficulties with its planned 787 model jetliner.
Experts had been anticipating Boeing's per-share earnings would be about $1.35 a share. But yesterday morning, the company reported earnings of $1.21 billion, or $1.61 a diluted share, a big improvement over the year-ago period's $877 million, or $1.12 a share.
The profit jump came from improved margins: revenues rose only slightly, to $16 billion from $15.37 billion.
SHANGHAI INDEX SOARS ON TAX CUT
SHANGHAI, China — Chinese shares soared early today after the government cut a tax on stock transactions in a move widely seen as a signal of support for the markets.
The Shanghai Composite Index surged as much as 9.6 percent to 3,593.2 in morning trade as investors resumed buying after weeks of holding back in hopes of market-boosting news. It later dropped back to 3,515.6, up 7.2 percent.
The jump came after the government announced that it was cutting a stamp tax on share transactions to 0.1 percent from 0.3 percent, reversing a move it made last May when it was seeking to cool surging stock prices.
