Qualcomm forecasts growth
Qualcomm Inc chief executive officer Paul Jacobs said the company can continue to grow earnings in double digits over the next five years. Growth would be fueled by a surge in smartphone sales which are to total about 5 billion units from this year through 2016, Jacobs said at a meeting with investors on Thursday at the company’s headquarters in San Diego, California. Qualcomm gets the majority of its sales from chips and the majority of profit from licensing its ownership of technology fundamental to modern mobile phones and networks, Jacobs said. Qualcomm is redesigning its products to work in tablets.
Dell reports income drop
Dell said on Thursday its third-quarter profit slid 47 percent from a year ago, but claimed its new strategy emphasizing software and cloud computing was paying off. Dell, one of the major PC manufacturers that have been hurt by a shift to tablets and other mobile devices, reported net income fell to US$475 million, or US$0.39 a share, a cent short of analyst forecasts. Revenues dipped 11 percent from a year ago to US$13.72 billion, also below expectations. However, Dell said its “enterprise solution strategy” showed positive results, with server and networking revenue increasing 11 percent.
Google invests in wind farm
Google Inc is to invest US$75 million in an Iowa wind farm as part of its effort to encourage development of cleaner energy sources. The deal announced on Thursday gives the company a stake in the Rippey Wind Farm in Greene County, Iowa. RPM Access LLC is the primary owner. Google’s investments in renewable energy now exceed US$990 million.
Nike plans stock split
Nike Inc is to boost its dividend payment and is planning a two-for-one stock split. The Beaverton, Oregon-based company said on Thursday both classes of its stock will split on Dec. 24. It expects its common stock to begin trading at the split-adjusted price on Dec. 26. Nike Inc’s widely traded class B stock closed at US$90.83 on Thursday.
SEC probes FedEx, UPS
FedEx and United Parcel Service (UPS) are being investigated by the Securities and Exchange Commission (SEC) in a probe of prescription medication sales by online pharmacies, the two US package delivery companies said on Thursday. The Wall Street Journal, which first reported on the matter, wrote that the probe is part of an expanding crackdown against illegal sales of prescription painkillers. FedEx denied any wrongdoing and vowed to “cooperate with the investigation,” while UPS said it was also cooperating with the probe.
Chrysler plans to create jobs
Chrysler plans to add 1,250 jobs at three Detroit-area factories as it prepares for a rise in pickup sales. The company said on Thursday that it intends to invest US$238 million at engine plants in Detroit and suburban Trenton, Michigan, and add a third shift at a pickup truck factory in nearby Warren, Michigan. The company, majority-owned by Italian carmaker Fiat SpA, currently has about 62,200 employees worldwide, including more than 41,000 in the US. The new hires would boost Chrysler’s total employment to 63,450.