Amazon.com earnings fall

Internet retailer Amazon.com Inc. said Tuesday its third-quarter earnings fell by about a third, but the company still managed to beat analysts’ expectations, sending shares surging more than 14 percent.

The company attributed the drop in earnings primarily to investments in technology and content, but investors appeared relieved that such investments weren’t even heftier.

The Seattle-based company reported net income of $19 million, or 5 cents per share, for the three months ended Sept. 30. That compares with earnings of $30 million, or 7 cents per share, in the same period a year earlier.

Sales for the quarter rose 24 percent to $2.31 billion, after climbing 27 percent to $1.86 billion in the year-ago quarter.

Analysts surveyed by Thomson Financial were expecting earnings of 3 cents per share on average, on revenue of $2.25 billion.

“Spokane-based AmericanWest Bancorporation Inc., parent of AmericanWest Bank, said third-quarter income fell compared with the year-ago period.

AmericanWest reported earnings of $2.4 milion, or 21 cents a share, compared with income of $3.2 million, or 30 cents a share, in the third quarter last year.

At the end of the third quarter, the bank had assets of $1.4 billion, up from assets of $1.1 billion at the same time last year.

AmericanWest will open three new branches in the fourth quarter, the company announced: one in Coeur d’Alene, another on the West Plains near Spokane and a third near Walla Walla. The company also announced last week that it plans to acquire Utah-based Far West Bancorporation in a $150 million transaction.

“Alaska Air Group Inc. posted a third-quarter loss Tuesday, citing hefty charges and higher jet fuel costs that offset a rise in both revenue and passenger traffic. The news sent the company’s shares sliding more than 7 percent.

For the three-month period ended Sept. 30, the Seattle-based parent company of Alaska Airlines and Horizon Air posted a loss of $17.4 million, or 44 cents per share, reversing a year-ago profit of $90.2 million, or $2.71 per share.

The results included charges stemming from the early buyout of MD-80 aircraft leases, severance costs for hundreds of clerical, office and passenger service employees, and fuel-hedging losses.

The 2005 results included fuel-hedging gains, a refund of Mexico navigation fees and an adjustment of previously recorded restructuring charges.

“Strong sales and the acquisition of a former rival combined for a 3 percent increase in third-quarter profit for Whirlpool Corp., but investors weren’t impressed.

Whirlpool shares fell $2.63, or 2.9 percent, to close at $86.70 on the New York Stock Exchange. Shares have traded in a 52-week range of $74.07 to $96.

Whirlpool’s net income rose to $117 million, or $1.47 per share, in the three months ending Sept. 30 from $114 million, or $1.66 per share, during the same period last year. Per-share figures fell because there were about 10 million more shares outstanding in the latest quarter.

Analysts polled by Thomson Financial were looking for earnings of $1.46 per share.

“Northrop Grumman Corp.‘s third-quarter earnings edged higher but were hurt by a legal provision that also forced the military contractor and shipbuilder to cut its full-year forecast.

Net income rose to $302 million, or 86 cents per share, from $293 million, or 81 cents per share, in the year-ago period.

The latest period included a charge of $112.5 million, or 20 cents per share, related to a proposed legal settlement with the Department of Justice. It also included a loss of 1 cent per share from discontinued operations.

Analysts, whose estimates typically exclude one-time charges, on average expected earnings of $1.07 per share, according to Thomson Financial.

“Burlington Northern Santa Fe Corp., the nation’s second biggest freight railroad operator, said Tuesday that third-quarter profit rose 18 percent on the strength of record shipments and higher fuel surcharges.

Quarterly earnings increased to $488 million, or $1.33 per share, from $414 million, or $1.09 per share during the same period last year.

Analysts polled by Thomson Financial forecast earnings of $1.30 per share.

Revenue grew 19 percent to $3.94 billion from $3.32 billion a year earlier, topping analysts’ forecast of $3.86 billion.

Fuel costs spiked by $293 million, or 59 percent, to $792 million. Burlington offset that by raising $507 million in fuel surcharges, up from $300 million a year ago. The railroad has been adding surcharges as shipper contracts come up for renewal.

Burlington Northern’s shares rose 35 cents, to close at $79.36 on the New York Stock Exchange.