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Comcast raises outlook

The Northrop Grumman plant in El Segundo, Calif., with models of the B1-B stealth bomber, foreground, and the F/A-18 Hornet fighter jet behind it. Northrop Grumman Corp., the world's largest shipbuilder and the country's third-largest military contractor, says second-quarter earnings rose 17 percent. (Associated Press / The Spokesman-Review)
From Wire Reports The Spokesman-Review
The Northrop Grumman plant in El Segundo, Calif., with models of the B1-B stealth bomber, foreground, and the F/A-18 Hornet fighter jet behind it. Northrop Grumman Corp., the world's largest shipbuilder and the country's third-largest military contractor, says second-quarter earnings rose 17 percent. (Associated Press / The Spokesman-Review)

Comcast Corp., the nation’s largest cable TV operator, said Thursday its second-quarter net income rose 7 percent from a year ago as revenue soared, highlighted by a leap in subscribers for its Internet telephone service.

Comcast also raised its financial outlook for the entire year, with the number of new subscribers to Comcast Digital Voice expected to be 30 percent to 40 percent higher than previously forecast.

During trading, shares of Comcast hit $34.33 — a new 52-week high — on the Nasdaq, before closing at $34.02, up $1.50, or 4.6 percent.

“It was a great quarter,” said Brian Roberts, Comcast’s chief executive, during a conference call with analysts. “We really feel the phone business is coming into its own and will drive an era of growth we haven’t seen in a long time.”

The company expects to roll out a wireless service in the Portland, Ore., and Boston areas as part of a joint venture with Sprint Nextel Corp. Comcast and Sprint will unveil a cobranded cell phone, initially offering Internet connectivity and limited video. Later, they plan to expand the services to include such things as programming a digital video recorder by cell phone.

“Of the so-called Big Three U.S. automakers, only DaimlerChrysler managed to post a profit in the second quarter.

Too bad the Chrysler half of that equation wasn’t any help.

Just as Mercedes-Benz made a comeback and its profits jumped to more than $1 billion in the second quarter, the Chrysler Group went into a big slump.

DaimlerChrysler stock bounced a little, its U.S. shares rising 60 cents, or 1.2 percent, to close at $50.12 on the New York Stock Exchange. They have traded in a 52-week range of $42.63 to $60.22.

The parent company on Thursday reported that second-quarter profits more than doubled from the previous year, rising to $2.3 billion (1.8 billion euros) in the April-June period, from $942 million (737 million euros) in the second quarter of 2005.

Sales were little changed at $49.3 billion (38.6 billion euros) for the quarter versus $49.1 million (38.4 billion euros) a year earlier.

The German-U.S. automaker also said that it expects a slight rise in revenue this year and announced Chrysler chief executive Tom LaSorda’s contract has been extended through 2012. LaSorda, a 52-year-old Canadian, has been a member of DaimlerChrysler’s management board since May 2004 and became CEO of Chrysler in September 2005.

“Defense contractors Northrop Grumman Corp. and Raytheon Co. both reported strong second-quarter earnings Thursday, joining other defense companies in profiting from strong demand for tanks, missiles, ships and other armaments.

Northrop Grumman, the world’s largest shipbuilder and the country’s third-largest military contractor, said second-quarter earnings rose 17 percent, as operating profit at its systems and information technology units overcame a decline at the company’s ships division.

Raytheon Co., the nation’s fifth-largest defense contractor, reported second-quarter net income jumped 54 percent, buoyed by strong military equipment sales.

Waltham, Mass.-based Raytheon also said it plans to explore options for its aircraft unit, including a sale, an initial public offering or a spinoff.

Both companies raised their earnings guidance for the year.

At Los Angeles-based Northrop Grumman, operating margins increased in the quarter despite a slight decrease in sales.

Net income climbed to $430 million, or $1.23 per share, from $367 million, or $1 per share, in the year-ago period. Excluding a loss related to the shutdown of a discontinued business and a 13 cents per share tax benefit, earnings were $1.13 per share in the latest quarter.

“Wendy’s International Inc. reported a second-quarter loss on Thursday because of costs from writing down the value of its struggling Baja Fresh Mexican Grill chain and a plan to cut up to 375 jobs at its corporate office.

The third-largest hamburger chain lost $29.1 million, or 25 cents per share, for the quarter ended July 2, compared with profits of $70.8 million, or 61 cents a share, in the same quarter a year ago. Revenue increased to $1 billion, up 8 percent from $951 million last year.

Discounting the $93 million in charges related to Baja Fresh, Wendy’s would have earned $63.8 million, or 54 cents per share. Analysts surveyed by Thomson Financial expected earnings of 53 cents on revenue of $999.2 million.

The company said the charges reflected a continued decline in the Mexican casual chain’s sales and performance. Wendy’s wrote down the value of Baja Fresh by $195 million in 2004.

“US Airways Group Inc., the airline formed from America West’s acquisition of the bankrupt former US Airways, on Thursday said it swung to a profit in the second quarter and expects a profitable third quarter and full year.

The company posted net income of $305 million, or $3.25 per share, for the April-June period versus a loss of $3 million, or 20 cents per share, a year ago.