Google’s profits soaring

Google Inc.’s first-quarter profit rose 69 percent, maintaining the online search leader’s penchant for blowing past analyst estimates.

The Mountain View-based company said Thursday that it earned $1 billion, or $3.18 cents per share, during the first three months of the year. That compared with net income of $592.3 million, or $1.95 per share, at the same time last year.

If not for expenses incurred for employee stock compensation, Google said it would have earned $3.68 per share. That figure topped the average estimate of $3.30 per share among analyst surveyed by Thomson Financial.

Quarterly revenue reached a new company high of $3.66 billion, a 63 percent increase from $2.25 billion last year.

After subtracting advertising commissions, Google’s revenue totaled $2.53 billion. That amount was about $40 million above analyst estimates.

“Advanced Micro Devices Inc. reported a greater-than-expected loss in the first quarter as the chip maker continued to struggle amid a fierce price competition with larger rival Intel Corp.

AMD said Thursday it lost $611 million, or $1.11 per share, in the first three months of the year. That compares with a profit of $185 million, or 38 cents per share in the same quarter a year ago.

AMD reported $1.23 billion in sales, a 7 percent decline from the $1.33 billion it rang up last year.

“American Express Co., the nation’s third-largest credit-card brand, said Thursday heavier use of its cards by more customers helped drive first-quarter profit up 21 percent to a record $1.06 billion.

The quarterly profit was 87 cents per share, from $873 million, or 69 cents per share, a year ago.

Profit from continuing operations totaled 88 cents per share in the latest period and included a $50 million gain related to a new accounting standard, a $39 million gain on changes to the company’s U.S. pension plans and a $60 million reserve for regulatory and legal exposure at American Express Bank International.

Total revenue grew 14 percent to $7.63 billion from $6.72 billion last year. After interest expense, revenue totaled $6.67 billion, up 10 percent from $6.05 billion in the prior-year period.

“Higher sales and double-digit profit jumps posted Thursday by three top pharmaceutical companies indicate the industry is rebounding from struggles with generic competition, weak pipelines and other problems.

On the heels of other recent upbeat reports, New Jersey drug makers Merck & Co. and Wyeth both reported first-quarter net income jumped 12 percent, and neighbor Schering-Plough Corp. saw its profits skyrocket 55 percent, all on strong sales of their medicines, rather than one-time gains.

Wyeth and Schering-Plough both beat analysts’ expectations and Merck matched the analysts’ consensus — only because it sharply increased its own profit forecast a week ago.

Merck, the Whitehouse Station-based maker of Fosamax for osteoporosis and Singulair for asthma and allergies, posted net income of $1.7 billion, or 78 cents per share, up from $1.52 billion, or 69 cents per share, in the same quarter a year ago.

Kenilworth-based Schering-Plough, which also sells respiratory treatments and Remicade for inflammatory disorders such as rheumatoid arthritis, posted net income of $543 million, or 36 cents per share, up from $350 million, or 24 cents per share, a year earlier. Sales grew 17 percent to $2.98 billion.

Madison-based Wyeth, which makes Protonix for acid reflux and Enbrel for arthritis, saw net income rise to $1.25 billion, or 92 cents per share, from $1.12 billion, or 82 cents per share.

“Hershey, the nation’s largest candymaker, on Thursday reported a slight increase in first-quarter revenues but said cost-cutting measures resulted in a nearly 24 percent drop in profits.

The Hershey Co. said it earned $93.5 million, or 40 cents a share, for the three months ending April 1. That compares with a gain of $122.5 million, or 50 cents a share, in the same period a year earlier.

“Union Pacific Corp. reported a 24 percent jump in first-quarter net income Thursday as revenue rose 4 percent for the nation’s largest railroad behind strong improvement in revenue for shipping chemical and agricultural products.

Union Pacific said it earned $386 million, or $1.41 per share, during the quarter that ended March 31. That’s up from the same period a year ago, when the railroad made $311 million, or $1.15 per share.