China considers same tax rate for domestic, overseas firms (AFP)
AFP - Chinese lawmakers have mulled a draft law that would impose a 25 percent income tax on both domestic and foreign firms, eliminating the preferential rate for overseas companies, according to state media.
Lowe's 2Q profit drops 7.9 pct, still beats view (AP)
2008.08.18By ANNE D'INNOCENZIO, AP Business Writer 4 minutes ago
NEW YORK - Lowe's Cos. Inc. reported a 7.9 percent decline in second-quarter profit on Monday, but still topped Wall Street expectations as the nation's second-largest home improvement retailer benefited from tight expense controls and the government stimulus checks.
The company offered a downbeat outlook for the third quarter, however, as it faces a weak housing market that shows no signs of recovery.
The Mooresville, N.C.-based Lowe's earned $938 million, or 64 cents per share, in the three months ended Aug. 1, down from $1.02 billion, or 67 cents per share, in the year-ago period.
It said sales increased 2.4 percent to $14.5 billion from $14.17 billion a year ago.
Analysts surveyed by Thomson Reuters expected a smaller profit of 56 cents per share on lower revenue of $14.1 billion.
"Our sales results for the quarter, while better than our forecast, reflect the realities of the continuing macro economic pressures on our industry," said Robert A. Niblock, chairman and CEO, in a statement. He added that Lowe's experienced "relative" strength in seasonal sales as homeowners restored lawns and did outdoor landscaping following the effects of last year's drought in much of the country. He also said the company benefited from the economic impact of the fiscal stimulus checks.
However, Niblock added that weakness in bigger ticket items continues, particularly in markets hurt most by the housing downturn.
Amid such economic uncertainty, Lowe's said that it expects earnings per share to be in the range of 27 cents to 31 cents in the fiscal third quarter which ends Oct. 31. Thomson Reuters says analysts were expecting 33 cents a share.
The company expects total sales to increase a modest 1 to 2 percent for the quarter while same-store sales, or sales at stores open at least a year, should fall 5 to 7 percent. Same-store sales are considered a key indicator of a retailer's health.
For the fiscal year, the company expects earnings per share to be in the range of $1.48 to $1.56 per share. Thomson Reuters says analysts were looking for $1.50 a share for the year
Total sales are expected to be up 1 percent and the company predicts same-store sales to fall 6 to 7 percent for the year.
Lowe's is second to The Home Depot Inc. among the U.S. home improvement retailers. Home Depot reports its earnings on Tuesday.
Top News
More articles on this topic:
China says to continue stable monetary policy (Reuters)
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Economic growth concerns drag down indexes (Reuters)
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Russia tax office files suit vs PWC on YUKOS audit (Reuters)
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Japan keeps view that economy is recovering (Reuters)
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
