Amazon’s Q2 earnings soar
Amazon.com’s second-quarter earnings more than doubled to US$158 million thanks to strong sales around the world and strong demand for toys and electronics. The company said its sales rose 41 percent to US$4.06 billion compared to US$2.89 billion in the year-ago quarter. The profit of US$158 million, or US$0.37 a share, was up from US$78 million, or US$0.19 a share. International sales rose by 47 percent helped by the US dollar’s decline against other currencies. The company also revised its annual forecasts, saying that full- year sales may rise to as much as US$20.1 billion, higher than an earlier forecast of as much as US$20 billion.
Chrysler cutting more jobs
Chrysler LLC, the third-largest US automaker, plans to cut an additional 1,000 salaried jobs after its first-half US sales tumbled 22 percent. The reductions will be completed by Sept. 30 through “retirements, special programs and attrition,” spokesman Dave Elshoff said ON Wednesday. The jobs represent 5.4 percent of Chrysler’s salaried workforce. The company is responding to “an expected prolonging of the current market conditions,” Elshoff said. Chrysler has announced 28,500 job cuts since February last year, including Wednesday’s, Bloomberg data shows.
Johnson leaving Microsoft
Microsoft Corp said on Wednesday that Kevin Johnson, who as president of the firm’s largest business division spearheaded the company’s pursuit of Yahoo Inc, is leaving the software maker. Microsoft will undergo a reorganization, splitting the division that Johnson runs — platforms and services — into two groups, one focusing on the Windows operating system and the other on search and other online services. A source briefed on the matter said Johnson will leave to become the chief executive at Juniper Networks Inc, which makes equipment for communications networks.
No plans to split Citigroup
Citigroup Inc chief financial officer Gary Crittenden said on Wednesday there are no plans to split up the company because of credit-related problems and that its capital levels remain strong. Crittenden, speaking on a conference call with fixed-income investors, told investors that Citi managers “have no intention to split up the various elements of the bank” and that “it’s not something we focus on at all.” He said Citi has doubled its stockpile of cash and easy-to-sell securities to about US$65 billion at the end of last month compared to US$24 billion a year earlier. He said Citi will be able to handle any losses created by new accounting rules that will force banks to move off-balance-sheet securities onto its books. The bank has about US$1 trillion of assets, much of it loans, asset-backed securities and other obligations, off its balance sheet.
Finance officials arrested
Police have arrested two Finance Ministry officials for illegally reducing or waiving taxes for several foreign-invested enterprises, the People’s Police reported yesterday. Phan Van Hien, deputy director of the Foreign Finance Department, was arrested on Wednesday along with his subordinate Hoang Ngoc Nang Hong on charges of “deliberately violating state regulations on economic management,” the newspaper said. Another deputy director of the department is also under investigation, the paper said.