Dell reveals SEC probe; profits down 51 percent

Computer maker Dell Inc. posted a 51 percent decline in net earnings for its second quarter Thursday and said regulators were investigating its accounting. The company’s shares fell in after-hours trading.

The company also announced an expanded partnership to put Advanced Micro Devices Inc. computer chips into a new line of servers and desktop PCs as early as next month.

Dell’s profits fell to $502 million in the second quarter from $1.02 billion in the same period a year ago.

Dell said it was cooperating with an informal investigation by the Securities and Exchange Commission over accounting and financial reporting. Dell said it did not believe there were any issues but was conducting its own internal investigation.

The results and the SEC probe were announced after the close of regular stock trading on the Nasdaq Stock Market. Dell’s shares slumped $1.25 or 5.5 percent to $21.55 in after-market trading.

•Nordstrom Inc. said Thursday that its second-quarter profits surged 20 percent, citing strong sales and continued progress managing inventory and improving merchandise.

For the quarter ended July 29, the upscale clothing retailer earned $178.8 million, or 67 cents per share, compared with earnings of $148.9 million, or 53 cents per share, in the same period a year earlier.

The results, released after the market closed for regular trading, included a one-time $5.6 million Visa/Mastercard settlement gain.

Sales rose 7.8 percent to $2.27 billion, from $2.1 billion in the year-ago period.

Nordstrom shares closed down a penny to $36.50 on the New York Stock Exchange. The stock has traded in a 52-week range of $30.41 to $42.90.

•The Federal Deposit Insurance Corp. said Thursday it is seeking public comment on issues related to the special sort of banks that Wal-Mart, Home Depot and 12 other companies wish to own.

On July 28, the FDIC halted for six months any new approvals of the banks, known as industrial loan corporations, or ILCs. Nearly 100 members of Congress from both parties had asked the agency to give lawmakers a chance to consider legislation that would block commercial companies from owning the banks.

Consumers don’t see outward signs of the banks. They are allowed to issue credit cards, take deposits and make loans; they cannot offer standard checking accounts if their assets exceed $100 million.