BUSINESS BRIEFS
Oracle offering $6.7 billion in bid for BEA Systems
Associated Press
SAN FRANCISCO — Pouncing on a vulnerable rival, Oracle Corp. has offered $6.7 billion to buy BEA Systems Inc. in its latest bid to trump SAP AG and IBM Corp. in an increasingly intense business software battle.
Oracle unveiled its $17-per-share cash offer yesterday, one day after BEA rejected it as inadequate, according to a letter BEA released a few hours after Oracle's revelation catapulted its stock to a new 52-week high.
BEA makes "middleware," products that help software applications run more smoothly on top of databases, while Oracle makes business management software.
Oracle's bid represented a 25 percent premium over BEA's closing stock price Thursday.
GE'S PROFIT RISES 14% IN 3RD QUARTER
NEW HAVEN, Conn. — General Electric Co.'s profit rose 14 percent in the third quarter on strong global sales of airplane engines, locomotives and other equipment that have led to a record order backlog.
The Fairfield-based industrial, finance and media conglomerate, whose properties range from aircraft engine manufacturing to the NBC television network, reaffirmed its profit outlook for the year.
The company said yesterday it earned $5.54 billion, or 54 cents per share, in the third quarter up from $4.87 billion, or 47 cents a share, a year ago.
RETAIL SALES UP FOR SEPTEMBER
WASHINGTON — Retail sales rose moderately in September, easing fears about a possible recession, while a big surge in gasoline costs pushed wholesale inflation higher.
The Commerce Department reported yesterday that retail sales increased 0.6 percent last month, double what had been expected, as a big increase in auto sales helped offset weak demand for clothing.
Meanwhile, the Labor Department said wholesale inflation jumped by 1.1 percent in September, the biggest increase in seven months, as gasoline costs shot up by 8.4 percent, the biggest gain since March.
However, outside of energy and food, core inflation remained well contained, rising by just 0.1 percent.
MCDONALD'S STAYS ON HOT STREAK
CHICAGO — McDonald's Corp.'s hot streak keeps on going.
The world's largest fast-food chain said yesterday its third-quarter profits will top Wall Street's estimates following another month of strong sales.
Global sales from its restaurants open more than a year rose 5.9 percent in September, led by an impressive 12 percent gain in its Asia/Pacific, Middle East and Africa division. Stronger foreign currencies helped boost results.
Same-store sales in its U.S. outlets rose 3.5 percent, increasing for a 54th consecutive month. The company cited its value menu, breakfast offerings and drinks as helping to boost sales — some 60 percent of which now come from drive-throughs.
McDonald's said it expects to earn 83 cents per share in the quarter, not counting an after-tax gain of 6 cents per share from the sale of its Boston Market franchise. That is six cents per share better than the estimate of analysts surveyed by Thomson Financial.
AMERICAN RAISES SOME AIR FARES
DALLAS — American Airlines raised many domestic fares by $5 each way but left prices unchanged on routes where it competes with low-cost carriers.
The Thursday-night increase affected both advance-purchase tickets favored by vacationers and more costly last-minute tickets aimed at business travelers.
Tim Smith, a spokesman for the airline owned by Fort Worth-based AMR Corp., said the fare increase was needed to cover high fuel costs.
Fall is typically a slower time for air travel, which could make carriers reluctant to raise fares.
But this week, UAL Corp.'s United Airlines raised fares to Hawaii and other carriers went along, indicating that demand is firming, said Rick Seaney, chief executive of travel Web site www.FareCompare.com.
