Business in brief: Financial woes force Air America to shut down

Los Angeles – Air America Radio, a radio network that was launched in 2004 as a liberal alternative to Rush Limbaugh and other conservative commentators, on Thursday shut down abruptly due to financial woes.

The network once boasted hosts such as Al Franken and Rachel Maddow, but struggled from the outset, including multiple management shake-ups, a bankruptcy in 2006 and sale for $4.25 million the following year.

Air America ceased airing new programs Thursday afternoon and said it will soon file to be liquidated under Chapter 7 bankruptcy. It began broadcasting reruns of programs and would end those as well Monday night.

Kosta Panidis, general manager of KPTQ-AM (1280), the Spokane affiliate of Air America, said that the impact will be small at his station, since his entire daytime lineup consists of non-Air America programs. Panidis said he plans to find other liberal-oriented syndicated shows to replace the Air America programs that he will lose at night.

Staff and wire reports

Google posts fourth quarter profits of nearly $2 billion

San Francisco – Google Inc. reeled in more Internet advertising during the holiday shopping season and approached $2 billion in quarterly profit for the first time, providing the strongest sign yet that Internet search leader has shaken off the recession’s doldrums.

The fourth-quarter earnings announced Thursday topped analyst estimates. Investors evidently were hoping Google’s revenue would accelerate even faster, and the company’s shares fell more than 4 percent in extended trading.

Google earned $1.97 billion, or $6.13 per share, in the final three months of 2009. That was up dramatically from income of $382 million at the same time in 2008.

Fourth-quarter revenue totaled $6.7 billion, a 17 percent increase.

Associated Press

Bloomingdale’s will court frugal shoppers with outlets

Los Angeles – Hoping to tap into consumers’ new frugality, luxury department store chain Bloomingdale’s plans to launch an outlet store concept this year.

The decision, announced Thursday by parent company Macy’s Inc., calls for four outlets to open this summer or fall, with more locations expected for 2011 and beyond. The first stores are scheduled to open in Paramus, N.J.; Miami; Sunrise, Fla.; and Woodbridge, Va.

Bloomingdale’s will join other upscale retailers that operate outlet concepts, such as Saks Inc. and Nordstrom Inc.

Los Angeles Times

BNSF earnings decline smaller than expected

Fort Worth, Texas – Burlington Northern Santa Fe Corp., the nation’s second-largest railroad operator, said Thursday it expects the economy to continue to gradually improve this year as it reported a smaller-than-expected drop in fourth-quarter earnings.

The comments Thursday echoed other railroad reports earlier in the week. Railroads are seen as important indicators of the country’s economic health because they ship so many consumer and industrial goods.

The company, which is being purchased by billionaire investor Warren Buffett’s Berkshire Hathaway, said profit slipped 13 percent to $536 million, or $1.55 per share, from $615 million, or $1.78 per share, in the 2008 period. Excluding a 25-cent-per-share tax benefit, Burlington Northern earned $1.30 per share in the latest quarter.

Revenue fell to $3.68 billion from $4.37 billion a year earlier.

Associated Press