IN BRIEF
SEATTLE
Sales of electronics, books lift Amazon
Amazon.com’s second-quarter profit more than tripled, boosted by strong sales of books, music and electronics worldwide.
Earnings for the three months ended June 30 climbed to $78 million, or 19 cents per share, from $22 million, or 5 cents per share during the same period last year, the company said Tuesday.
Results topped Wall Street’s expectations. Analysts surveyed by Thomson Financial forecast a profit of 16 cents per share.
Revenue rose 35 percent to $2.88 billion from $2.14 billion in the year-ago quarter, beating analysts’ expectations for $2.81 billion in sales.
Sales in the United States and Canada rose 38 percent to $1.6 billion, which Chief Financial Officer Tom Szkutak said was the highest growth rate in more than six years.
CHICAGO
Ryerson agrees to private equity buyout
After a protracted fight with its largest shareholder, steel processor Ryerson said Tuesday that it agreed to be acquired by a private equity firm for $1.06 billion in cash.
The $34.50-per-share offer from Beverly Hills, Calif.-based Platinum Equity was a 15 percent premium over the company’s closing share price on Feb. 13, the day before the Chicago-based company’s board said it would consider studying its strategic alternatives.
LOS ANGELES
Countrywide profits shrink by nearly a third
Countrywide Financial Corp. said Tuesday its second-quarter profit shrank by nearly a third as softening home prices led to rising delinquencies and mortgage defaults among the most creditworthy borrowers.
The huge mortgage lender was forced to take impairment charges as it braced for the possibility of more people failing to make their mortgage payments.
Countrywide reported second-quarter net income of $485 million, or 81 cents per share, in the quarter ended June 30, compared to $722 million, or $1.15 per share, in the year-ago period.
Analysts polled by Thomson Financial forecast profit of 95 cents per share.
Revenue fell 15 percent to $2.55 billion from $3 billion.
NEW YORK
Demand predictions drive oil prices down
Gasoline prices extended their slide at the pump overnight, and oil and gasoline futures posted big declines Tuesday on a growing view that demand for gasoline is ebbing and inventories are growing.
A perception that oil prices have been driven higher by speculation and not by supply-and-demand concerns also led some investors to lock in profits, analysts said.
The average retail national price of a gallon of gasoline fell 1.2 cents overnight to $2.956, AAA and the Oil Price Information Service said. Retail prices peaked at $3.227 a gallon in late May.
The tumble in gasoline futures helped drag light, sweet crude for September delivery down $1.33 to settle at $73.56 a barrel on the Nymex.
ROCHESTER, N.Y.
Bausch & Lomb seeks higher buyout bid
Bausch & Lomb told eye-care products rival Advanced Medical Optics on Tuesday it needs to improve its takeover offer to compete with a $3.67 billion cash bid by a private equity firm.
Unless Advanced Medical provides extra assurances about the value and solidity of its $4.2 billion cash-and-stock bid, the board of Bausch & Lomb said the offer “would not be likely to result in a superior proposal.”
It gave the Santa Ana, Calif.-based company until midday Friday to improve its offer.
BOSTON
Facebook facing lawsuit from rival site
The owners of a rival social networking Web site are trying to shut down Facebook.com, charging in a federal lawsuit that Facebook’s founder stole their ideas while they were students at Harvard.
The three founders of ConnectU say Mark Zuckerberg agreed to finish computer code for their site, but repeatedly stalled and eventually created Facebook using their ideas.
The lawsuit’s allegations against Zuckerberg include fraud, copyright infringement and misappropriation of trade secrets. It asks the court to shutter Facebook and give control of the company and its assets to ConnectU’s founders.
Facebook has responded by asking a judge to dismiss the lawsuit. A hearing is scheduled for today in U.S. District Court in Boston.
NEW YORK
Treasury prices rise as stocks stumble
The Treasurys market did well out of a painful session for equities Tuesday, as a series of poor second-quarter earnings reports turned investors on to government paper.
At 5 p.m. EDT, the 10-year Treasury note was up 31 cents per $1,000 in face value, or 0.03 points, from its level at 5 p.m. Monday. Its yield, which moves in the opposite direction, fell to 4.95 percent from 4.96 percent.
The 30-year bond rose 0.03 points. Its yield was unchanged at 5.06 percent.
