BUSINESS BRIEFS
WaMu, Wachovia report billions in quarterly losses
Associated Press
CHARLOTTE, N.C. — Large second-quarter losses at Wachovia Corp. and Washington Mutual Inc. have revived concerns that the financial sector still has a long way to go before it recovers from the year-old credit crisis.
Wachovia, the nation's fourth-largest bank, racked up an $8.86 billion loss because of charges and reserves for bad mortgage loans.
The Charlotte-based bank also cut its dividend for the second time this year and eliminated 10,750 positions.
Washington Mutual, the nation's largest savings and loan, delivered a further blow, swinging to a $3.33 billion loss as it boosted its loan loss reserve to more than $8 billion.
YAHOO'S PROFIT FALLS 18 PERCENT
SAN FRANCISCO — Yahoo Inc.'s second-quarter profit fell 18 percent, the latest sign of the financial decay that has frustrated shareholders and raised doubts about the Internet company's future.
But while the results released yesterday missed analyst expectations, the performance wasn't as bad as many investors had feared after Internet search and advertising leader Google Inc.'s second-quarter earnings disappointed Wall Street last week.
Yahoo earned $131 million, or 9 cents per share, from April through June, compared with $161 million, or 11 cents per share, at the same time last year.
FORD TO BRING IN 6 SMALL VEHICLES
DETROIT — Ford Motor Co. plans to revamp some U.S. plants and bring six small vehicles to the U.S. market from overseas to meet customers' growing demand for more fuel-efficient options, a person briefed on the company's plans said yesterday.
Ford has no immediate plans to close U.S. plants despite overcapacity in a slumping market, the person said. Instead, the automaker will retool plants to increase production of smaller cars and engines. The person requested anonymity because Ford isn't confirming details until tomorrow, when it releases second-quarter earnings.
The moves will further accelerate Ford's efforts to ease its dependence on trucks, sport utility vehicles and vans, which accounted for 45 percent of its sales in the first half of this year.
Ford's U.S. sales dropped 14 percent in the first six months of 2008 as consumers shocked by rising gas prices sought smaller vehicles.
UPS PROFITS DROP NEARLY 21 PERCENT
ATLANTA — Customers are using UPS shipping services within the U.S. less because of the slumping U.S. economy and soaring fuel prices. The company's international business was affected as imports into the country declined in the second quarter.
As it reported a nearly 21 percent profit decline in the April-June period and lowered its outlook for the year, United Parcel Service Inc. said yesterday it was working to cut costs.
Even so, Edward Jones analyst Dan Ortwerth said the Atlanta-based company has the financial wherewithal to steer through the rough patch. UPS shares rose more than 4 percent yesterday.
OIL SPECULATION BILL ADVANCES
WASHINGTON — The Senate voted yesterday to move ahead with a Democratic plan to curb speculation in oil markets that has been blamed for some of the recent run-up in oil prices.
The 94-0 vote clears a procedural hurdle for the legislation, which would require the Commodity Futures Trading Commission, or CFTC, to set limits on trading in oil markets by investors and speculators.
Despite the big tally, however, the parties remain divided on how to address high gasoline prices. Republicans say the bill would have little if any effect and instead want to lift a ban on offshore drilling.
Also, a federal task force said in an interim report that supply and demand factors are most likely to blame for the sharp run-up in oil prices.
