BUSINESS BRIEFS
Discounters TJX, Wal-Mart post 1st-quarter gains
Associated Press
NEW YORK — Solid first-quarter profits from discounters Wal-Mart and TJX show that more Americans are hunting for bargains as they struggle to cover their monthly credit card payments, and put food on the table and gas in the family car.
Wal-Mart Stores Inc., the world's largest retailer, yesterday posted a 6.9 percent increase in first-quarter profits, helped by improved customer service, better inventory control and strong international sales.
The results beat Wall Street's projections by a penny, but the company issued a cautious outlook for the current quarter and warned that the economy would be a "critical factor" in 2008.
TJX Cos., which operates stores under the T.J. Maxx, Marshalls and HomeGoods names, said its first-quarter profits rose almost 20 percent, meeting analysts' projections. But lower investment income and costs from European expansion left TJX's profit margin slightly below the company's expectations.
PROFIT DOWN 13% AT WHOLE FOODS
AUSTIN, Texas — Whole Foods Market Inc. said yesterday that sales surged in the second quarter but absorbing the Wild Oats chain it bought last year caused profit to sag by 13 percent.
Company executives said the weakening economy and tougher competition might have curbed sales growth. The retailer of organic and natural foods said net income in the quarter ended April 13 fell to $40 million, or 29 cents per share, from $46 million, or 32 cents, a year earlier.
Whole Foods plans to open its first Hawai'i store by mid-year at Kahala Mall.
Analysts surveyed by Thomson Financial had predicted a profit of 30 cents per share.
The Austin-based grocer said last year's acquisition of Wild Oats Markets Inc. cost $8.6 million, or 6 cents per share, in the quarter.Revenue rose 28 percent to $1.87 billion, but fell short of analysts' forecasts.
YAHOO'S BOARD MAY BE IN TROUBLE
SAN FRANCISCO — Billionaire investor Carl Icahn reportedly is snapping up Yahoo stock in preparation for a possible attempt to replace the Internet company's board after the directors turned down Microsoft's $47.5 billion takeover offer.
Icahn has bought as many as 50 million Yahoo shares, both CNBC and The Wall Street Journal reported yesterday. That would give Icahn a 3.6 percent stake in the Internet pioneer. The financier, who is known for shaking up slumping companies, could spearhead a campaign to oust Yahoo's 10 directors for not accepting Microsoft Corp.'s final offer of $33 per share.
IAC, LIBERTY SETTLE DISPUTE
NEW YORK — IAC/InterActiveCorp and Liberty Media Corp. say they resolved a legal skirmish regarding IAC's plans to break into several parts.
Liberty is dropping an appeal it filed disputing a March ruling by a Delaware judge who sided with IAC head Barry Diller on the breakup plans.
Liberty owns about 30 percent of IAC's equity and was fighting with IAC for months over the breakups.The companies agreed on various arrangements regarding operations of the spun-off companies. These include Liberty's right to board representation at each firm and a limitation on Liberty's ability to raise its ownership stakes.
OIL, GAS PRICES REACH NEW HIGHS
NEW YORK — Oil prices shot to a record near $127 a barrel yesterday on concerns that Iran may consider cutting crude oil production.
Gas prices, meanwhile, rose to a record over $3.73 a gallon, and their advance shows little sign of slowing with Memorial Day weekend, the traditional start of the summer driving season, just 10 days away.
Light, sweet crude for June delivery rose as high as a record $126.98 a barrel in midday trading on the New York Mercantile Exchange before retreating to settle up $1.57 at $125.80.
