Business Briefs - Wednesday

TECHNOLOGY

Apple surges on new iPod rumors

Speculation that the company will announce a new iPod next week at a newly announced media conference sent shares up 5.7% to 134.08. Goldman Sachs said it expects Apple to release a new family of iPods with greater functionality and a much-anticipated full-screen video iPod. While Apple also produces Mac computers and the recently released iPhone, its iPod digital music plays are seen as a major driver of overall sales and its online music service.

The9 tops, but down on costs

The Chinese online game operator said Q2 EPS rose 25.6% to 54 cents ex items, beating views by 20 cents. Revenue grew 4.9% to $37.4 mil. Operating expenses jumped 38% due to higher product development costs, sales and marketing costs. Shares sharply dropped. The9 Limited NCTY CFO called the quarter "transitional" and expects long-term gains from upgrades to the popular online game "World of Warcraft." Despite solid results, shares tumbled 9.5% to 36.52.

Compuware, CPWR a management software developer, approved an additional $200 mil stock buyback. Its repurchasing originally was $300 mil, but it already has bought back $275 mil of that. It said it will not take on additional debt to fund the buyback. Shares rose 6.3% to 7.94. MACHINERY

Joy Global warns of weak market

The mining equipment company said Q3 EPS rose 6.3% to 67 cents, missing views by 3 cents. Revenue grew 4% to $621.8 mil. Joy Global JOYG warned that its future results would be affected by continued softness in U.S. underground coal market and capacity limitations in its surface mining equipment unit. Baird cut its price target 14% to $55, stating the coal market appeared weaker than projected and would have a greater impact on short-term results. Shares fell 4.2% to 42.93.

RETAIL

Wal-Mart threat 'part of a scam'

A bomb threat that caused the evacuation of a Newport, R.I., store of the world's biggest retail chain, and led its employees to wire $10,000 to the caller, seems related to a plot targeting banks and stores in other cities, FBI said. A man called Wal-Mart WMT and threatened employees and demanded money. The store wired money to an account. A similar call was made to a bank inside a Wal-Mart store in Va. Wal-Mart rose 2% to 44.19.

Dillards extends losing streak

The department store operator swung a Q2 loss of 31 cents, missing views by 30 cents. Dillards' DDS revenue slipped 2% to $1.65 bil, shy of expectations. Oppenheimer said the company has had 7 consecutive Q2 sales declines and same-store sales have fallen 12 of the past 14 months. The analyst added that few retailers have turned it around after such results. Shares fell 0.6% to 24.20.

Dollar Tree Stores beats views

The discount retailer said its Q2 earnings rose 25% to 35 cents a share ex items, beating estimates by 2 cents. Dollar Tree's DLTR revenue grew 10% to $971.2 mil, besting forecasts. The company said its same-store sales increased 4.4%. It added selling, general and administrative expenses rose 12% to $273.2 mil. Shares rose 5.4% to 40.97.

Fred's weak sales on expenses

The discount store said its Q2 EPS rose 27.3% to 8 cents, missing views by a penny. Revenue climbed 4% to $424.6 mil, below views. Same-store sales rose 1.3%. Fred's FRED said its sales "failed to meet expectations" as expense weighed down profit. Its switch to generic drugs hurt pharmacy sales, but helped margins.

Potter magic helps Border beat

The No. 2 bookseller narrowed Q2 losses to 26 cents a share ex items, beating views by 8 cents. Borders' BGP revenue grew 10% to $956.7 mil, topping predictions. Same-store sales rose 4.6% at its superstores, 6.2% at Waldenbooks and 8.2% at international stores. It rose 1% to 14.94.

TRANSPORTATION

FAA presses for 737 inspections

Regulators ordered U.S. airlines to pick up the pace of their inspections of the wing slats on Boeing BA 737s in light of newly discovered problems. The FAA reduced time allowed to complete the checks from 24 days to only 10. It initially called for inspections after a 737 fire on a Taiwanese jetliner was blamed on a broken bolt from a wing slat.

Double Hull misses by a penny

The operator of a fleet of crude oil tankers said its Q2 earnings rose 14% to 25 cents a share, missing views by a penny. Double Hull Tankers' DHT shipping revenue increased 7% to $20.7 mil, just ahead of estimates. It cites strength of tanker charger and booming tanker demand in China. The company declared a 39-cent-a-share dividend to be paid Sept. 21. Shares climbed 1.5% to 15.50.

Daimler profit down, sets buyback

The automaker said profit fell 14% to $2.52 bil ex items, missing views. DaimlerChrysler's sales fell 3% to $32.52 bil. The automaker, which recently sold its Chrysler group, said it will buy back about $10.2 bil, about 10%, of its shares. Chrysler's profit rose 18% to $554.8 mil. Daimler retains a 19.9% stake in Chrysler, so it will continue to report some Chrysler earnings, but they will not be pulled out from the larger group they will be within. Shares rose 3.9% to 87.61.

Nissan Motor, NSANY the Japanese automaker, will make small trucks and other light commercial vehicles in India with Ashok Leyland, an Indian truck and bus maker. The companies also are looking into ways to tap into each other's dealer networks in India and elsewhere. Shares revved up 2% to 19.13. MEDICAL

FDA accepts Merck's application

The drug maker said the FDA accepted its marketing application for its cholesterol drug Cordaptive. The decision on the potential blockbuster product is likely in the Q2 of '08. Merck MRK's drug, formerly known as MK-0524A, is designed to raise levels of "good" HDL cholesterol. Clinical trial data support its use to treat excessive levels of "bad" LDL cholesterol. It rose 1.4% to 49.92.

ENERGY

CNOOC profit, revenue top views

The Chinese offshore oil producer said its first-half profit fell 11% to $1.9 bil and revenue dropped 12.6% to $5.6 bil, but its results still topped several analysts' projections and CNOOC CEO outlook was stronger than expected. It said average crude oil prices fell 5.8% in the first half of the year compared with a year earlier. It blamed declining output on maintenance shutdowns and lingering damage from storms last year. Shares surged 4.9% to 119.44.

Energy Conversion ENER, a maker of solar cells and fuel cell batteries, said Q4 loss widened to 19 cents ex items, missing views by 7 cents. Revenue rose 29% to $36 mil, above views. It forecast Q1 revenue of $40 mil-$45 mil, the midpoint above views of $41 mil. Shares fell 6.3% to 27.08.