The Commerce Department reported Thursday that sales of new homes in September rose by 4.8 percent to a seasonally adjusted annual rate of 770,000 units. Analysts viewed the unexpected gain as questionable given the credit crunch that has rocked the housing industry. In the same report, the government revised the performance over the past three months sharply lower, showing August new home sales fell to the slowest pace in 11 years.
Comcast’s profit falls, revenue rises
Comcast Corp., the nation’s biggest cable TV systems operator, said its third-quarter profit fell 54 percent and new customer additions slowed amid increasing competition. Comcast earned $560 million, or 18 cents per share, in the three months ended Sept. 30 compared with $1.22 billion in the same quarter last year, which included a one-time gain of $669 million.
Alaska Air posts $86 million profit
Seattle-based Alaska Air, the holding company for Alaska Airlines and Horizon Air, posted net income for the third quarter of just under $86 million, or $2.11 per share, compared to a loss of $17 million a year earlier. Revenue rose 6 percent to $995 million in the July-September period, up from $936 million in the year-earlier period.
Motorola showing turnaround signs
Motorola Inc.’s third-quarter earnings plummeted 94 percent but the cell phone maker still managed to impress Wall Street, improving from a first half of 2007 and serving notice its turnaround effort may be taking hold. The world’s third-largest handset maker posted income for the July-through-September period that amounted to 3 cents per share, compared with a year-earlier profit of $968 million, or 39 cents per share.
Heelys investors sue top executives
Shareholders of Heelys Inc., which makes shoes with wheels, have sued the company’s board of directors and top executives for alleged mismanagement and misuse of assets. The shareholder derivative lawsuit accuses Heelys’ leaders of abusing power, wasting corporate assets and unjustly enriching themselves, according to a regulatory filing. The Texas-based company said the claims are without merit.
Oil company pays big in settlement
BP is paying more than $373 million in settlements to get rid of problems left over from the reign of its former chief executive. Also, four former BP employees were indicted by a federal grand jury in Chicago on 20 counts of mail and wire fraud connected to a scheme to manipulate energy markets. The bulk of the fines aim to punish London-based BP for conspiring to fix propane prices in 2003 and 2004.
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