BUSINESS BRIEFS
Apple profit jumps 26% on iPhone 3G sales
Associated Press
Apple Inc. said its profit jumped 26 percent in its fiscal fourth quarter as the newest iPhone 3G outsold the market-leading BlackBerry from Research in Motion Ltd.
For the three months ended Sept. 27, Apple's profit climbed to $1.14 billion, or $1.26 per share, from $904 million, or $1.01 per share in the same period last year.
Sales jumped 27 percent to $7.9 billion from $6.22 billion in the year-ago quarter.
Cupertino, Calif.-based Apple's profit topped Wall Street's expectations, but sales missed.
On a conference call with analysts yesterday, Chief Executive Steve Jobs addressed concerns that economic weakness will eat into Apple's business through the holidays and beyond.
Apple sold a staggering 6.9 million of its iPhone 3Gs in the quarter, more than the 6.1 million total first-generation iPhones sold. The iPhone launched July 11 and is available in more than 50 countries.
UAL REPORTS $779M Q3 LOSS
MINNEAPOLIS — United parent UAL reported a $779 million third-quarter loss yesterday, by far the biggest airline loss of the season. In the same quarter it suffered from both expensive jet fuel and accounting charges due to falling oil prices.
The nation's second-biggest carrier said capacity cuts and charges for things like checking luggage should help make it profitable again.
Fees for things like luggage are here to stay, said John Tague, United's chief operating officer. He said customers have been frustrated as they get used to that, but the business has to be run in a way to make a profit.
KERKORIAN DUMPS 3.7M FORD SHARES
NEW YORK — Billionaire Kirk Kerkorian's investment firm said yesterday it sold part of its stake in Ford Motor Co., taking millions of dollars in losses on the investment and marking an abrupt about-face from the optimistic expectations he had for the automaker just four months ago.
But while the move doesn't bode well for Ford, industry observers said it may be more of a personal finance decision for Kerkorian.
Tracinda Corp., which sold the 7.3 million Ford shares at an average price of $2.43, added that it plans to further cut what is now a 6.1 percent stake in the No. 2 U.S.-based automaker, for a potential total loss of more than half a billion dollars. The company said it may sell its remaining 133.5 million shares depending on market conditions.
2 BIG DRUGMAKERS BEAT EXPECTATIONS
TRENTON, N.J. — Pfizer Inc. and Schering-Plough Corp. both managed to beat analysts' minimal expectations yesterday, largely because of revenue buoyed by favorable currency exchange rates and growing sales overseas making up for slumping sales at home.
The two drugmakers also posted lower third-quarter sales of their key franchise, cholesterol drugs, which are becoming less of the cash cows they once were as more health plans and patients prefer far less-expensive generic versions of Zocor.
Despite flat sales, Pfizer's profit tripled, mainly because a huge charge depressed last year's results. But it reduced its 2008 earnings forecast — to a range of $1.61 to $1.71, from $1.73 to $1.88 — even as it raised the lower end of its revenue forecast.
OIL PRICES MOVE BELOW $71 AGAIN
NEW YORK — Oil prices slumped back below $71 a barrel yesterday as a stronger dollar overshadowed expectations of a sizable OPEC output cut and led investors to shed commodities bought as an inflation hedge.
At the pump, consumers got another price cut as a gallon of regular gasoline lost 3.4 cents overnight to a national average of $2.89, according to auto club AAA, the Oil Price Information Service and Wright Express. Prices have fallen 30 percent from their July 11 peak of $4.11 a gallon and are quickly closing in on year-ago levels.
