Briefcase

Sale, wealthy shoppers boost Nordstrom profits

NEW YORK – Nordstrom Inc. said its annual anniversary sale and wealthy shoppers’ demand for its shoes, makeup and designer clothing helped its second-quarter net income rise 20 percent. The company also boosted its full-year profit outlook.

Its shares rose nearly 4 percent in aftermarket trading after closing up more than 5 percent amid a market rally.

“We’re mindful of the economic challenges facing all of us,” said President Blake Nordstrom during a call with analysts. “However, we know from previous experiences that our customers remain receptive when we’re able to evolve with them and provide a compelling reason to buy something new.”

The department store chain, based in Seattle, said it earned $175 million, or 80 cents per share, in the three-month period ended July 30. That compares with $146 million, or 66 cents per share, in the year-ago period.

The anniversary sale helped results significantly, Nordstrom said. Particularly successful was a program that gave Nordstrom card holders early access to the sale, he said.

Associated Press

Goodyear researching self-inflating tires

LOS ANGELES – The auto industry’s efforts to increase fuel economy and reduce emissions may pay off with the development of self-inflating tires.

Goodyear Tire & Rubber Co. said it was experimenting with what it calls Air Maintenance Technology, which will enable tires to remain inflated at the optimum pressure without the need for external pumps or electronics. All components of the AMT system, including a miniaturized pump, will be fully contained within the tire.

The company said Thursday that it had a $1.5 million grant from the Department of Energy to launch a demonstration of the system in commercial truck tires.

The government of Luxembourg is paying for the company to conduct similar research for consumer tires at Goodyear’s Innovation Center in Colmar-Berg, Luxembourg.

Goodyear said underinflated tires result in a 2.5 percent to 3.3 percent decrease in fuel efficiency.

Los Angeles Times

Slow new-car sales push up used-car prices

LOS ANGELES – Normally, the value of a new car plunges as it’s driven out of the dealership by its new owner.

But slumping auto sales and leases in recent years have changed that axiom by creating a shortage of late model year used cars, according to auto price information company Kelley Blue Book.

For 1- to 3-year-old used vehicles, the average price has increased from $15,000 in 2008 to more than $23,000 in 2011, an annual average increase of nearly 16 percent, Kelley analysts said.

They expect used car pricing to remain strong because it will take several years of strong new-car sales to replenish the shortage of used vehicles that is pushing prices up now.

Los Angeles Times