Business briefs for July 21, 2004

Wednesday, July 21, 2004 | 11:13 a.m.

Tech giant benefits from settlement

SAN JOSE, Calif. -- Sun Microsystems Inc. reported a fiscal fourth-quarter profit Tuesday as the struggling server and software maker saw sales jump for the first time in three years and benefited from its settlement with Microsoft Corp.

For the three months ended June 30, Sun earned $795 million, or 24 cents per share, compared with a loss of $1.04 billion, or 32 cents per share, in the same period last year. Sales rose 4.3 percent to $3.11 billion from $2.98 billion last year.

The results, however, were boosted by Sun's $1.95 billion settlement with Microsoft on April 2, and Sun said it was seeking confirmation of its accounting from the Securities and Exchange Commission. It also said results were "pending final resolution of these matters."

Wireless service drives earnings

OVERLAND PARK, Kan. -- Sprint Corp., the third-biggest U.S. long-distance telephone company and the dominant telephone provider in the Las Vegas area, today said second-quarter earnings surged on higher wireless-service sales.

Net income rose to $233 million, or 16 cents a share, from $7 million, or break-even on per-share basis, a year earlier. Sales rose 6.3 percent to $6.87 billion, Overland Park, Kan.-based Sprint said in a statement.

Sprint has 1,550 Las Vegas-area employees and 875,810 local telephone access lines. The company does not give local wireless or wireline customer figures.

Profit drops on higher fuel costs

PHOENIX -- The parent company of America West Airlines reported a sharp drop in second-quarter profit today, citing higher fuel costs and more competition.

America West is the No. 2 commercial air carrier serving McCarran International Airport.

For the three months ending June 30, America West Holdings Corp. earned $5.7 million, or 11 cents per share, compared with $79.7 million, or $2.02 per share, a year ago. Excluding special reimbursements and other fees, the 2003, second-quarter figure was $12.9 million, or 33 cents per share.

Second-quarter revenue rose more than 5 percent to $605.1 million.

Total fuel expenses rose 48.5 percent increase in the second quarter from a year ago.

Profit up, but market share falls

DETROIT -- General Motors Corp.'s second-quarter profit rose 49 percent, boosted largely by record earnings at its financial services arm but offset by continued losses on the automotive side in Europe.

Its global and North American market share declined.

The world's largest automaker said today it earned $1.34 billion, or $2.36 a share, in the April-June quarter, up from $901 million, or $1.58 a share, a year ago.

Revenue rose 7.1 percent to $49.1 billion from $45.9 billion a year ago.

GMAC earned a record $860 million in the second quarter, up from $834 million in the year-ago period.

Cell phone sales drive up earnings

FORT WORTH, Texas -- The stock of RadioShack Corp. rose Tuesday after it reported second-quarter profit rose 19 percent on the strength of sales of cell phones and computer products.

The Fort Worth-based electronics chain also raised its full-year earnings forecast and provided a third-quarter target that exceeded Wall Street's expectations.

New York Stock Exchange-listed RadioShack shares closed at $29.02.

In the quarter ended June 30, RadioShack earned $68.3 million, or 42 cents a share, on revenue of $1.05 billion. In the same period last year, it earned $57.5 million, or 34 cents a share, on revenue of $1.03 billion.

Earnings jump at online broker

OMAHA, Neb. -- Online broker Ameritrade Holding Corp. reported a 25 percent increase in its third-quarter earnings from a year ago.

The Omaha-based discount broker said Tuesday it earned $62.3 million, or 15 cents a share, for its third quarter ending June 25. That compared to $49.9 million, or 12 cents a share, for the same three-month period in 2003.

Revenue for the quarter came in at $220 million, an increase of 16.7 percent from the $188.5 million a year ago.