BUSINESS BRIEFS
Dell shares fall on poor quarterly earnings report
Associated Press
NEW YORK — Computer maker Dell Inc. said its fiscal second-quarter profit fell 17 percent, hurt in part by PC price cuts. Both earnings and margins fell short of Wall Street estimates, and Dell shares plunged.
For the three-month period that ended Aug. 1, Dell's earnings dropped to $616 million, or 31 cents per share, from $746 million, or 32 cents per share in the same period last year.
Investors sent Dell shares down $2.50, or 10 percent, to $22.71 in after-hours trading. Earlier, the stock dropped 42 cents to close at $25.21. Sales rose 11 percent to $16.4 billion, ahead of Wall Street's view for $15.9 billion in sales.
STRIKE THREATENS BOEING PROGRAMS
CHICAGO — Boeing could face a revenue drain of $3 billion to $3.5 billion a month and could see its high-profile 787 Dreamliner and two other new aircraft programs delayed if a threatened strike by production workers occurs next week.
The company also could be required to pay late delivery penalties to at least some of its customer airlines. Boeing also could end up covering some costs incurred by subcontractors forced to slow or shut down their operations while Boeing's assembly lines are stopped.
To avoid that, the Chicago-based aerospace giant yesterday made what it calls its "best and final" offer to the International Association of Machinists and Aerospace Workers union. They will vote on the offer on Wednesday.
BOOST IN SALES BUOYS TIFFANY'S
NEW YORK — Rising sales in Asia and Europe boosted Tiffany & Co.'s second-quarter profit yesterday, signaling that strong international demand for jewelry is helping offset U.S. economic weakness.
Fellow jeweler Zale Corp. posted a loss for its fiscal fourth quarter but forecast 2009 profit above Wall Street expectations and noted significant growth opportunities in Canada.
The softening domestic economy, which has crimped discretionary spending for many Americans, has jewelers focusing on international efforts to offset sluggish sales in the U.S.
TOYOTA LOWERS SALES TARGET
TOKYO — Toyota lowered its global sales target for 2009 by 700,000 vehicles to 9.7 million yesterday, showing that even one of the world's most durable automakers is being hurt by rising material costs, a slowing U.S. market and soaring gas prices.
Toyota Motor Corp had previously set a 2009 global sales goal of 10.4 million vehicles.
The lower target would still be a 2 percent increase from the company's 2008 sales goal of 9.5 million. But even that figure was reduced last month from an initial 9.85 million units.
Toyota has been on such a potent growth track in recent years, it is getting closer to ending General Motors Corp.'s 77-year run as the world's top automaker by sales.
Japan's top automaker sold more than 4.8 million vehicles worldwide in the first half this year, slightly more than the U.S. rival's 4.5 million vehicles.
WORKERS AT L.A. AIRPORT WALK OUT
LOS ANGELES — Roughly 2,500 members of a union representing skycaps, janitors and other service workers at Los Angeles International Airport walked off the job yesterday before the start of the Labor Day weekend.
Striking members of Service Employees International Union Local 1871 began picketing after negotiators called off contract talks with companies that contract with major airlines for baggage handling, cleaning in aircraft cabins and terminals, security, wheelchair assistance and other services.
"We have been giving proposals to improve service and security for the airport and airlines, but there's been no serious response from them," union spokesman Mike Chavez said.
Chavez said nonunion workers were filling in for the companies. It wasn't clear how long the walkout might last.
