Recalls batter GM profits but Ford makes progress
General Motors reported a much lower second-quarter profit yesterday due to numerous recalls and the expected cost of at least $400m for a compensation fund for those killed or injured by a defective ignition switch. Net income fell to $190m, from $1.2bn a year earlier. Meanwhile, smaller rival Ford posted a higher-than-expected profit on strong results in North America and Europe.
Caterpillar raises its outlook even as equipment sales fall
Caterpillar reported higher-than-expected quarterly earnings yesterday and raised its full year profit forecast, though the equipment maker said sales fell as a slump in the global mining industry offset a rebound in the North American building sector. Caterpillar reported earnings of $999m the second quarter, up from $960m last year.
Sales fell three per cent to $14.15bn.
Starbucks reports stronger-than-expected growth in US
Starbucks yesterday said quarterly sales at established stores in its dominant Americas region grew a somewhat stronger-than-expected six per cent, including a seven per cent rise for the US. Its net income was $512.6m for the fiscal third quarter ending 29 June, up from $417.8m a year earlier. Shares in Starbucks were up just 0.4 per cent to $80.80, in extended trading following its results.
Visa sees growth in profits and revenue but shares fall
Visa, the world’s largest credit and debit card company, yesterday reported higher-than-expected third quarter profit and revenue, but saw its shares fall into negative territory as investors found room to fault its forward guidance. It reported $3.16bn in third quarter revenue, a five per cent increase over the same period last year. Shares in Visa were trading down 3.3 per cent after hours.