Amazon earns US$7m in Q2
Online retailer Amazon.com Inc on Thursday reported second-quarter earnings of US$7 million, or US$0.01 per share, that matched Wall Street’s meager expectations, but revenue grew 29 percent to US$12.83 billion from a year ago, short of the US$12.9 billion expected by analysts. Sales of digital goods, such as Kindle e-books, music and movies, rose 13 percent to US$4.12 billion, while sales of electronics and other items rose 38 percent to US$8.16 billion. The Seattle-based company said it expected third-quarter revenue to grow between 19 percent and 31 percent from a year ago. That amounts to sales of US$12.9 billion to US$14.3 billion.
Starbucks cuts Q3 outlook
Starbucks Corp on Thursday reported second-quarter net income that fell short of Wall Street expectations and cut its outlook for the current quarter, citing the challenging global economy. The Seattle-based coffee giant said net income rose 19 percent to US$333.1 million, or US$0.43 per share during the quarter from a year ago, as global revenue at cafes which have been open at least a year rose 6 percent, driven mainly by growth in China and Asia, and the Americas. For the current quarter, Starbucks cut its profit outlook to US$.044 to US$0.45 per share from a range of between US$0.46 and US$0.47 per share.
Consumer prices fall 0.2%
Consumer prices in the country fell 0.2 percent year-on-year last month, a decrease for the second consecutive month, the internal affairs ministry said yesterday. The reading for the core index, which excludes volatile food items, was slightly worse than the 0.1 percent drop some economists had expected. The country has been in deflation for years, with a series of monetary and fiscal policy moves failing to reverse the trend. Core consumer prices for the Tokyo metropolitan area, a leading indicator of price trends for the rest of the country, fell 0.6 percent this month from the same month a year ago, official figures showed.
Consumer confidence falls
Consumer confidence fell unexpectedly this month to its lowest level since February in the face of growing fears about unemployment as a slew of companies unveil plans for major layoffs, a survey showed yesterday. The INSEE official statistics office said that its consumer confidence index fell to 87 this month from 89 last month. Last month’s figure was also revised down from 90 originally. The reading, well below the long-term average of 100, fell short of expectations in a Reuters poll of 16 economists that had indicated an average forecast of 90.
Ford recalls Escape SUVs
Ford Motor Co is recalling 484,600 older-model Escape SUVs, most of them in the US, because their throttles can be stuck open, US safety regulators said. Ford Escapes from the 2001-2004 model years with 3 liter, V6 engines are affected by the recall. A week ago, Ford recalled about 11,500 new 2013 model year Escape SUVs with 1.6 liter EcoBoost engines because of a fire risk that was related to fuel lines. The issue involves the cruise control cable on the Escapes and safety regulators are investigating whether it was a factor in the death of a teenager in Arizona earlier this year.