IN BRIEF

CHARLOTTE, N.C.

Lowe’s Cos. earnings increase 9 percent

Lowe’s Cos., the nation’s second largest home improvement chain, cited customer service and efficient operations Monday as reasons for a better-than-expected 9 percent rise in its second-quarter profit.

However, decreasing sales at stores open at least a year, worsening trends in the housing market and uncertainty over credit quality led the Mooresville, N.C.-based retailer to trim its earnings outlook for the full year.

Lowe’s said it earned $1.02 billion, or 67 cents a share, for the three months ended Aug. 3, up from $935 million, or 60 cents a share, a year earlier.

Revenue rose 5.8 percent to $14.17 billion from $13.39 billion.

The results topped of Wall Street expectations. Analysts surveyed by Thomson Financial had expected net income of 61 cents a share on revenue of $14.13 billion.

For the year ending Feb. 1, Lowe’s expects earnings of $1.97 a share to $2.01 a share. In May, Lowe’s cut its 2007 earnings estimates to a range of $1.99 to $2.03 a share.

WASHINGTON

Time sought to study merger of grocers

A federal appeals court said Monday it needs more time to consider whether to block Whole Foods Market’s takeover of rival Wild Oats Markets.

The U.S. Court of Appeals for the District of Columbia Circuit temporarily put the $565 million deal on hold until it can hear more arguments. The three-judge panel said, however, the decision “should not be construed in any way as a ruling on the merits” of the case.

The Federal Trade Commission Friday asked the court to stay a decision by U.S. District Judge Paul Friedman that allowed the transaction to proceed. The agency has also appealed Friedman’s Thursday decision and wants to block the deal on antitrust grounds.

Whole Foods is blocked “from taking any further steps to acquire the stocks, assets or any other interest” in Wild Oats until the appeals court issue a further ruling, the panel said Monday.

Whole Foods has until Wednesday afternoon to respond to the FTC’s request for a stay, the court said.

LOS ANGELES

Countrywide aims to quell customers’ fears

Countrywide Financial Corp., the nation’s largest mortgage lender, sought to reassure customers Monday that the problems dogging its mortgage operations were not affecting its banking unit.

The assurance came amid a report that Countrywide has started laying off an undisclosed number of employees as it tries to ride out the credit crunch that has rocked the home loan industry.

The job cuts occurred in Countrywide’s Full Spectrum Lending unit, which handles mortgages given to customers with minor credit problems or who can’t provide full income documentation required for traditional prime loans, The Wall Street Journal reported.

ATLANTA

SunTrust Banks will cut about 2,400 jobs

SunTrust Banks said Monday it will cut roughly 2,400 jobs, more than 7 percent of its total work force, by the end of next year.

The company, which said it doesn’t expect its sales to be affected by the move, will incur a pretax, one-time charge of $45 million in thus year’s third quarter to cover costs associated with the job cuts.

The move is part of several initiatives meant to save on costs and improve value for shareholders. The positions do not involve customer contact, Atlanta-based SunTrust said in a statement.

As of Dec. 31, there were 33,599 full-time equivalent employees at SunTrust, a regulatory filing shows.

NEW YORK

Union urges investors to OK buyout of TXU

The AFL-CIO, the umbrella group for U.S. labor unions, on Monday recommended that shareholders vote to approve the $32 billion private-equity buyout of TXU Corp., saying turmoil in the credit and equity markets makes it unlikely that investors will get a better offer for the Texas power company.

Credit worries that have spilled over into the stock market and the opposition of TXU’s largest shareholder have combined to drive TXU’s shares down well below the $69.25 per share price that private-equity firms Kohlberg Kravis Roberts & Co. and TPG have offered for TXU’s stock.

WASHINGTON

Interest rates decrease in Treasury auction

Interest rates on short-term Treasury bills fell in Monday’s auction.

The Treasury Department auctioned $21 billion in three-month bills at a discount rate of 2.85 percent, down from 4.63 percent last week. Another $17 billion in six-month bills was auctioned at a discount rate of 3.95 percent, down from 4.71 percent last week.

NEW YORK

Prices rise sharply for short-term Treasurys

Shorter-term U.S. Treasury instruments surged Monday as market participants again sought out the safest assets available.

At 5 p.m. EDT, the 10-year Treasury note was up $3.44 per $1,000 in face value, or 0.34 points, from its level at 5 p.m. Friday. Its yield, which moves in the opposite direction, fell to 4.63 percent from 4.68 percent.