Ford’s profit up 6 percent to $1.3 billion

DEARBORN, Mich. » Ford Motor Co. beat Wall Street’s expectations in the second quarter as it chalked up a record profit in North America and made money in Europe for the first time in three years.

But things will get leaner in the second half as Ford closes one of its U.S. pickup truck plants to prepare for the launch of its new aluminum-sided F-150. Marketing expenses for new products, like the truck and the Ford Edge in the U.S. and the Mondeo and Focus sedans in Europe, also will take a bite out of earnings.

Ford, which earned $3.9 billion before taxes in the first half of this year, confirmed it expects full-year earnings of $7 billion to $8 billion. That’s down from $8.6 billion in 2013.

"It’s really a setup year for a step up in the business in 2015 and beyond," Chief Financial Officer Bob Shanks told media Thursday at Ford’s Dearborn headquarters.

For the April-June period, Ford’s net income rose 6 percent to $1.3 billion. The profit, of 32 cents a share, was up from 30 cents a share in the same period a year ago.

Ford’s revenue fell 1 percent to $37.4 billion.

New menu helps lift Starbucks’ U.S. sales

NEW YORK » Starbucks said Thursday that its revamped breakfast sandwiches and other new menu items helped boost sales at its U.S. cafes.

The Seattle-based coffee chain posted a slightly higher-than-expected profit for its fiscal third quarter, as sales rose in regions around the world. In its flagship U.S. market, sales at established cafes increased 7 percent. Earlier in the day, Dunkin’ Donuts had reported a disappointing increase of just 1.8 percent, with executives citing intensifying competition in the breakfast category.

Globally, Starbucks said sales at established locations rose 6 percent for the quarter.

For the quarter, Starbucks Corp. earned $512.6 million, or 67 cents a share, compared with $417.8 million, or 55 cents a share, in the year-earlier period. Revenue rose 11 percent to $4.15 billion.

Amazon shares tumble after $126M loss

SEATTLE » Shares of Amazon.com Inc. fell Thursday after the e-commerce retailer reported a deeper-than-expected second-quarter loss as expenses outpaced a surge in revenue.

Amazon has long focused on spending the money it makes to grow and expand into new areas. In one of its most high-profile moves, Amazon is introducing its own smartphone, the Fire, which starts selling Friday.

The company has been heavily investing in services for its loyalty program, Prime, which costs $99 a year and includes free two-day shipping on many items. It has added a grocery delivery services and music streaming for Prime Members as well as offering original TV shows and apps. It also expanded Sunday deliveries and recently began offering a set-top video streaming box.

The Seattle-based company’s shares fell $35.17, or 9.8 percent, to $323.44 in Thursday’s aftermarket trading.

Amazon posted a loss of $126 million, or 27 cents a share, compared with $7 million, or 2 cents a share, in the same quarter a year earlier. Revenue rose 23 percent to $19.34 billion from $15.7 billion.

U.S. new-home sales plummeted in June

WASHINGTON » Sales of new U.S. homes plunged in June, a sign that real estate continues to be a weak spot in the economy. New home sales fell 8.1 percent last month to a seasonally adjusted annual rate of 406,000, the Commerce Department said Thursday. The report also revised down the May sales rate to 442,000 from 504,000.

The median sales price was $273,500, up 5.3 percent over the past 12 months.

Zillow and Trulia may be close to merger

The nation’s two biggest real estate websites could soon become one. Zillow Inc. is in talks to buy its largest rival, Trulia Inc., in a deal worth as much as $2 billion, Bloomberg reported Thursday, citing sources familiar with the negotiations. Although the talks could fall through, the sources said a deal could be announced as soon as next week.

Spokespeople for both companies declined to comment on the report, which no other news organization independently confirmed. The two sites are by far the largest in the burgeoning online real estate industry and combined for 84.6 million unique visitors in May, according to a report by Clareity Consulting.

ON THE MOVE

Catholic Charities Hawaii has hired the following two employees to serve as development officers, who will be responsible for donor relations, gift stewardship and development activities: 

>> Lisa Nakano was previously serving as a marketing and development coordinator at Hospice Hawaii.

>> Suzanne Peterson has more than 20 years of business experience, including serving as a development administrative manager at Saint Louis School.

Visa has recognized American Savings Bank as one of 108 national banks named QualityPerformance Award winners. ASB was the only Hawaii bank recognized with the Highest Chargeback Effective Rate for Fraud reason codes. The award recognizes ASB’s operational efficiency, compliance procedures and accuracy in being able to identify fraudulent charges on small-business and consumer debit card accounts.