Business Briefs - Wednesday

SECURITY

Geo Group beats, boosts outlook

The operator of correctional and detention facilities said its Q2 earnings grew 8% to 26 cents a share, beating views by a penny. Geo Group's GEO revenue lifted 24% to $258.2 mil, besting expectations. The company said its U.S. corrections revenue grew 12% to $169 mil. Shares jumped 9.4% to 30.83.

RETAIL

Sotheby's profit, revenue top

The international auction house said its Q2 earnings grew 40% to $1.64 a share, topping views by 13 cents. Sotheby's BID revenue lifted 37% to $339.5 mil, easily surpassing analyst estimates. Its contemporary art series sales in New York brought in $344.6 mil while its fine art sales in London garnered $402.5 mil. It increased its Q3 dividend 50% to 15 cents a share payable Sept. 15. Shares surged 6.7% to 50.04.

BUILDING

Foster Wheeler slips as sales miss

An engineering and construction services company said Q2 earnings rose 139% to $1.41 a share ex items, beating views by 11 cents. Foster Wheeler's FWLT revenue grew 60% to $1.19 bil, just shy of expectations. The company said it recorded a high level of bookings for services in the second half of '07. Shares fell 5.9% to 99.99.

AECOM's tech services carry Q3

A provider of technical and management support services said its Q3 earnings grew 86% to 26 cents a share, a penny over views. AECOM ACM Technology's revenue grew 21% to $1.1 bil, besting expectations. The company's professional technical services revenue grew 25% to $903.4 mil, while its operating income jumped 47%. Shares edged up 0.7% to 27.05.

Perini beats, lifts EPS guidance

The construction services provider PCR posted a huge gain in Q2 profit of $1.01 a share, up from 16 cents last year, smashing views by 40 cents. Revenue soared 62% to $1.15 bil, due mostly to higher volumes from the hospitality and gaming markets. It has about $8.7 bil in booked construction work. The strong results prompted Perini to raise its 2007 EPS outlook to $2.80-$3, vs. views of $2.66. Shares rose 1.4% to 51.10.

TECHNOLOGY

Microsoft, Google plan rejected

The FCC said a prototype Internet broadband device proposed by the tech giants that's designed to beam the Internet over unused TV airwaves can not be put into service. Regulators said the device could not reliably detect the unused airwaves and, as a result, could interfere with signals of licensed TV operators. But the coalition of high-tech heavyweights, which includes Hewlett-Packard HPQ and Intel INTC, said it will continue to work with the FCC to develop a device that would allow them to bypass dealing with telecom and cable TV companies.

Lenovo Group, the No. 3 PC maker that bought IBM's PC unit in '05, revealed it wants to take over a rival Packard-Bell in Europe, a deal tentatively valued at $800 mil. TELECOM

Sprint Nextel sees fewer users

The wireless provider said Q2 earnings fell 22% to 25 cents a share, beating views by 3 cents. Sprint Nextel's S revenue lifted 2% to $10.16 bil, missing expectations. The company said its earnings were down due to costs tied to a rollout of its WiMax network. It increased its subscriber base during the quarter by 400,000 to 54 million customers. The company said it will likely see a loss of customers in Q3. Shares slipped 2.2% to 19.77.

Nokia to further collaborations

The world's No. 1 cell phone maker said it will transfer chip set technology and workers to STMicroelectronics STM to improve the companies' efforts on high-speed, 3G mobile technology. The move is part of a plan that has further collaboration with Texas Instruments TXI, Broadcom BRCM and Infineon Technologies IFX. Separately Nokia NOK said it will fight 2 complaints of unfair trade practice by infringing on patents. Shares climbed 3.5% to 30.80.

SERVICES

Lamar Advertising hard hit on miss

The outdoor ad agency LAMR said Q2 profit edged up to 19 cents a share, falling a penny shy of views. Revenue increased 10% to $315.2 mil, in line with views. But it expects Q3 revenue to come just short of analysts expectations, blaming a softness in real estate advertising. It currently has 534 digital displays in operation and is on track to beat its outlook of over 600 digital displays by year-end. Shares tumbled 10.6% to 54.81.

MEDIA

News Corp. EPS meets, sales beat

The newspaper and TV giant owned by Rupert Murdoch said after hours that its Q2 profit edged up 3.7% to 28 cents a share, matching analysts' forecasts, as revenue rose nearly 9% to $7.37 bil. Operating income in its cable network division surged 46% to $284 mil, but its Fox Broadcast network and film and TV studio divisions both posted declines in income, down 4.5% and 47%, respectively. News Corp. last month reached a deal to buy Dow Jones for $5 bil. Shares dipped in late trading.

Liberty Media posts mix results

The multimedia company posted mixed results at it two TV divisions. Its home-shopping channel QVC saw net income rise 1% to $244 mil while revenue climbed 4% to $1.69bil. Meanwhile, its Starz Entertainment division reported its profit slipped 1% to $42 mil on a 4% decline in sales to $264 mil. Liberty said that after it exchanges a 40% stake in News Corp. for a controlling stake in DirecTV Group DTV, expected by late Sept., it will restructure its businesses into 3 tracking stocks. Liberty Media LCAPA climbed 3.2% to 115.27.

Cablevision lowers growth views

The New York-area cable TV provider said it turned around last years 9 cent loss to gain $1.08 a share, including items. No comparable estimates were immediately available. Cablevision's CVC revenue grew 12% to $1.57 bil, in line with views. The company lowered its '07 revenue growth to 11% from an estimated percentage gain in the mid-teens due to a "competitive environment." Shares edged up 0.8% to 34.

MEDICAL

Bausch & Lomb turns Q2 profit

The maker of eye care products said it swung a 27-cent profit after losing 28 cents a share in the year ago period. Analysts predicted 53 cents. Bausch & Lomb's BOL revenue grew 14% to $649.5 mil, beating views. The company said its contact lens sales grew 10% to $192.6mil on high sales of PureVision silicone hydrogel lenses. The company agreed earlier to a $3.67bil private equity buyout. Shares dipped 0.3% to 62.36.

GlaxoSmithKline, GSK a drug maker, said federal regulators rejected a new use of its Advair Diskus drug for patients with a common respiratory disease. In May, a panel of 11 experts unanimously agreed it reduces the risk of pulmonary disease. Shares climbed 0.5% to 52.76. Barr doubles generic sales in Q2

The pharmaceuticals company said its earnings fell 85% to 41 cents including items. No comparable estimates were immediately available. Barr Pharmaceuticals' BRL revenue jumped 81% to $637 mil, topping estimates. The company said its sales of generic drugs more than doubled to $487 mil. Its research and development spending increased 80% to $65.4 mil. Shares rose 4% to 55.

FINANCE

ING sells part of ABN Amro stake

The Dutch banking and insurance group ING said Q2 net profit rose 27% to $3.54 bil, boosted by the sale of part of its 6.5% stake in ABN Amro Holding ABN. ING booked $791 mil in gains from selling ABN shares, but it did not specify how many it sold. Royal Bank of Scotland and Barclays BCS are leading rival bids for ABN in the largest takeover duel in banking industry history. ING's pretax profits from insurance rose 50%, while pretax banking profits fell slightly to $1.84 bil. Shares rose 5.9% to 44.31.

ENERGY

JA Solar sees higher production

Solar cell maker's Q2 earnings grew 320% to 21 cents a share, beating views by 3 cents. JA Solar's JASO revenue jumped 399% to $60 mil, topping expectations. The company raised its '07 production forecast to 110 megawatts from 100 megawatts, which could give it revenue of $300 mil-$310 mil. Analysts expected $307 mil. It climbed 2% to 35.01.

Allis-Chalmers misses EPS views

A provider of services and equipment to oil and natural gas exploration said its Q2 earnings fell 22% to 39 cents ex items, missing views by 4 cents. Allis-Chalmers' ALY revenue jumped 134% to $143.4 mil, topping forecasts. The company said international drilling added $52.9 mil to new revenue. It fell 5.6% to 20.95.

TRANSPORTATION

Toyota, GM see slower '07 sales

The auto industry giants, speaking at an industry gathering in Mich., predicted weaker overall U.S. sales this year. Toyota now expects industrywide U.S. auto sales to decline 2% this year from '06, its second straight annual decline, but is optimistic sales will rebound in early '08. General Motors GM lowered its forecast for industrywide U.S. sales from flat to a slight decline and added it would be "challenging" to achieve its target of selling 3 mil vehicles. Toyota edged up 0.7% to 123.22. GM rose 4% to 34.82.