Business News You Need Today: Aug. 3, 2010
Coach Earnings Rise: Coach (COH) ended its fiscal year with a bang reporting fiscal fourth-quarter earnings rose almost 40% to 64 cents a share, beating analyst estimates of 56 cents a share, according to Zacks.com. During the same quarter a year ago, the maker of pricey handbags and luxury accessories earned 45 cents a share. Coach reported revenues in the three months ending July 3 rose 22% to $951 million. The upbeat results suggest that consumers -- at least those who are well-heeled -- are beginning to spend again.
BMW Profits Accelerate: German luxury-car maker BMW reported strong second-quarter earnings Tuesday. Profits rose to €834 million ($1.1 billion), up from €121 million a year ago, on better selling prices and strong demand in China, the company said in a statement. Revenues for the quarter climbed 18.3% to €15.35 billion from €12.97 billion a year ago. BMW, along with other automakers, will report U.S. sales for July later Tuesday.
Rising Auto Sales: After middling sales in June, expectations are that automakers saw greater traffic in showrooms last month. Nissan Motors (NSANY) and Ford Motor (F) are thought to be among the big winners; the two companies are expected to report July sales ramped up 22% and 13%, respectively. Other companies are viewed reporting single-digit percentage gains for the month, with eager consumers snapping up bargains as the 2010 model year winds down. Toyota Motor (TM), however, isn't among them. Expectations are the Japanese automaker will report sales fell as consumer wariness remained following the company's numerous recalls for safety problems with its vehicles.
RIM's New Smartphone: Research in Motion (RIMM) is expected to unveil its new smartphone Tuesday as it strives to maintain its lead ahead of the Apple (AAPL) iPhone and devices that use Google's (GOOG) Android operating system. The new smartphone may have a touch-screen and a pullout keyboard, CNN reported.
Glamour Launches iPad App: Glamour magazine on Tuesday will become the first major women's title to offer a version of itself for Apple's (AAPL) iPad, reports DailyFinance media columnist Jeff Bercovici. The first wave of magazines to become available on the wildly popular electronic device consisted largely of male-oriented titles like Wired, Popular Mechanics and Sports Illustrated. With the release of its Apple app today, Glamour takes a crack at breaking the glass iPad ceiling.
Disney Trains Smellin' Good: Walt Disney's (DIS) beloved steam trains, an original Disneyland attraction dating to 1955, are now powered by french fry oil left over from meals in the park's restaurants. In WalletPop's Video of the Day, watch as Editor-at-Large Jason Cochran learns why the park made the switch.
Boston Beer Earnings Bubble Up: Boston Beer (SAM) is expected to report Tuesday quarterly earnings rose to $1.15 a share, up from 83 cents a share in the year-ago quarter. Wall Street expects the maker of Sam Adams beer to have pulled in $132 million during three months ending June, as the economic recovery put consumers in jollier moods. Shares of the brewer have risen more than 45% this year.
Anadarko Pumps Up Profit: BP (BP) drilling partner Anadarko Petroleum (APC) reports second-quarter earnings after trading closes Tuesday on Wall Street. Investors will be keen to hear how the Gulf oil spill and the moratorium on deepwater drilling in the Gulf of Mexico have impacted profits. Analysts polled by Thomson Reuters forecast earnings, on average, of 36 cents a share on revenue of $2.75 billion, Bloomberg News reports. A year ago the company recorded a loss of 47 cents a share. Anadarko owns a 25% stake in the Macondo well that exploded April 20, killing 11 workers and sending millions of gallons of oil into Gulf waters. Analysts estimate total costs from the incident could run as high as $60 billion.
BP To Test Broken Well: BP (BP) is moving forward with its plan to seal the broken oil well in the Gulf of Mexico that has spewed millions of gallons of oil into the water. A crucial test -- to determine whether sealing the well could proceed -- is expected to be carried out Tuesday, CNN reported. The oil giant also anticipates conducting a "static kill" operation Tuesday, the first of two efforts to permanently cap the well.