Apple's 3Q earnings fall 22 percent on flat revenue
SAN FRANCISCO (AP) – Apple's latest quarterly report confirms the iPhone maker's growth has stalled along with its pace of innovation.
The results announced Tuesday mark the second straight quarter that Apple Inc.'s earnings have fallen from the previous year after a decade of steadily rising profits.
Apple's revenue for the three months ending in June barely budged from last year. That's the smallest revenue increase since the Cupertino, Calif., company unleashed a mobile computing revolution with the iPhone's debut six years ago.
Apple hasn't released another breakthrough product since the iPad came out in 2010.
FDA: Menthol cigarettes likely pose health risk
RICHMOND, Va. (AP) – A Food and Drug Administration review concludes that menthol cigarettes likely pose a greater public health risk than regular cigarettes, but the FDA does not make a recommendation on whether to limit or ban the smokes – one of the few growth sectors in the shrinking cigarette business.
The federal agency released the independent review on Tuesday and is seeking input from the health community, the tobacco industry and others on possible restrictions on menthol cigarettes.
The FDA evaluation concluded that there is little evidence to suggest that menthol cigarettes are more or less toxic or contribute to more disease risk to smokers than regular cigarettes. However there is adequate data to suggest that menthol use is likely associated with increased smoking initiation by younger people and that menthol smokers have a harder time quitting, the review said.
Report: Economic concerns drive college choices
WASHINGTON (AP) – College costs are driving decisions about which schools to attend, what to study and even where to live, according to a report from loan giant Sallie Mae.
Parents no longer foot the largest portion of the bill, according to the lender's annual survey. That role goes to grants and scholarships, with student loans coming in third.
While the recession has largely passed, economic worries have not and many families are making college choices driven by fears of tuition hikes and job losses, according to the survey.
AT&T revenue up, profit down as costs rise in 2Q
The surge in tablet usage helped boost AT&T's wireless revenue for the latest quarter, but profits declined as costs surged, the company said Tuesday.
AT&T's coffers were drained by smartphone sales, which it subsidizes in the hope of making money back over the life of two-year contracts. AT&T also made investments to increase its home broadband speeds.
AT&T Inc., the country's largest telecommunications company, said it earned $3.8 billion, or 71 cents per share, in the April-to-June period, compared with $3.9 billion, or 66 cents share, a year ago.
RadioShack 2Q loss widens, CFO leaves
NEW YORK (AP) – RadioShack said Tuesday that its second-quarter loss widened as the struggling electronics retailer works to revamp its stores and product assortment ahead of the crucial holiday season.
Although the loss was bigger than analysts expected, revenue beat expectations and the company said it was bringing on consultants to help improve results.
RadioShack has been cutting costs, shuffling management and updating stores and product selection to battle back against tough competition from online retailers and discount stores that have expanded their electronics offerings. In a call with analysts, CEO Joe Magnacca, who came aboard in February, said he expects the turnaround to continue for the next several quarters, but he said a streamlined assortment of products – with more emphasis on categories like digital fitness and accessories like headphones and speakers – should be available in stores by the critical holiday season, during which retailers can make up to 40 percent of all revenue.
UPS profit falls on shift to lower cost services
DALLAS (AP) – UPS said Tuesday that second-quarter profit fell 4 percent as customers continued to shift from premium to lower-priced shipping services.
The company called the results disappointing and said it was adapting to the changing market.
Atlanta-based United Parcel Service Co. and rival FedEx Corp. are losing some high-priced business as international shippers switch from premium next-day air deliveries to two-day or three-day services. UPS Chairman and CEO Scott Davis told analysts on a conference call that the shift could be temporary due to a lack of new technology products from Asia.
DuPont reports drop in 2Q earnings
DOVER, Del. (AP) – Chemicals giant DuPont reported a nearly 12 percent decline in second-quarter earnings Tuesday partly because of lower pricing for titanium dioxide, a widely used whitening pigment, and said it is exploring a possible sale or spinoff of its performance chemicals unit.
DuPont Co. is a global leader in production of titanium dioxide but has wrestled for more than a year with sluggish demand for the whitener, which is used in broad range of products from automotive and house paints to toothpaste and sunscreen.
Titanium dioxide is a key part of DuPont's performance chemicals business, but CEO Ellen Kullman noted that markets for performance chemicals are cyclical and volatile, and that they have low growth profiles compared to other DuPont products.
Wendy's tops expectations; to sell restaurants
NEW YORK (AP) – Wendy's reported a quarterly profit above Wall Street expectations and said it's selling 425 of its restaurants to franchisees, a move that's expected to help boost its profit margins.
The move isn't unusual; fast-food companies often own only a small percentage of their restaurants. This helps keep their operating costs in check and gives them a more stable stream of income that's tilted toward royalty fees and rent, rather than sales at restaurants.
Wendy's, based in Dublin, Ohio, also raised its dividend by 25 percent to 5 cents per share.
Ford hiring 800 more salaried workers in US
DEARBORN, Mich. (AP) – Ford Motor Co. says it's hiring 800 more engineers, computer specialists and other salaried workers in the U.S.
Ford initially planned to hire 2,200 salaried workers this year, but says it will now hire 3,000 as demand for new vehicles grows. U.S. auto sales were up 8 percent to more than 7.8 million through June. Ford's sales rose 14 percent.
Ford's human resources chief, Felicia Fields, says the company lost 13,000 salaried workers in the U.S. when it was restructuring between 2006 and 2009. Some of those workers have returned, but many are new hires recruited from Motorola, Microsoft and other high-tech companies.
By The Associated Press(equals)
The Dow Jones industrial average rose 22.19 points, or 0.1 percent, to 15,567.74. The Standard & Poor's 500 index fell 3.14 points, or 0.2 percent, to 1,692.39. The Nasdaq composite fell 21.11 points, or 0.6 percent, to 3,579.27.
Benchmark crude for September delivery rose 29 cents to close at $107.23 per barrel on the New York Mercantile Exchange. Brent crude, traded on the ICE Futures exchange in London, rose 27 cents to finish at $108.42 a barrel.
Wholesale gasoline was flat at $3.06 a gallon. Heating oil was flat at $3.07 a gallon. Natural gas gained 7 cents to end at $3.74 per 1,000 cubic feet.