Baxter profits up 20 percent on biotech drugs, overseas sales

Strong sales of biotech drugs and vaccines drove second-quarter profit up 26 percent for drugs and medical-device maker Baxter International Inc., beating Wall Street estimates.

Higher international sales helped the Deerfield-based manufacturer weather lower U.S. sales of several injectable drugs, including the blood thinner heparin, which was recalled for safety reasons earlier this year.

The company also raised its full-year outlook. For the quarter ended June 30, Baxter reported net income of $544 million, or 85 cents per share, up from $431 million, or 65 cents per share, in the same period last year.

Sales increased 13 percent to $3.2 billion. However, more than half of that increase came from favorable currency exchange rates. Excluding foreign currency adjustments, sales would have increased only 5 percent. Analysts polled by Thomson Financial expected second-quarter earnings of 82 cents per share on revenue of $3.05 billion.

Based on its performance, Baxter raised its expectations for 2008 adjusted earnings to between $3.28 and $3.32 per share, up from prior estimates of $3.18 to $3.24 per share. Analysts predicted $3.24 per share.

Baxter said profit margins benefited from product and geographic mix and favorable pricing. Much of the profit b boost came from increased international business, as foreign sales of biotech products rose 21 percent to $795 million. International sales for Baxter's medication delivery unit rose 27 percent to $639 million.

Fuel costs cited in Continental loss

DALLAS - Continental Airlines Inc. said Thursday it swung to a second-quarter loss, hurt by record high fuel prices and weakening economic conditions. The loss was far smaller than expected.

But Continental executives said in a conference call that some businesses are reducing travel and many are putting more limits on how employees fly - in coach rather than first class, for example.

Chase profit down less than forecast

NEW YORK - JPMorgan Chase's profit took a second-quarter, 53-percent hit as mortgage and other loan defaults worsened, but the bank's results were better than expected and gave Wall Street a lift.

The bank's shares gained nearly 5 percent in premarket trading Thursday and closed the day at $40.80, up $4.86, or 13.5 percent. Following Wells Fargo & Co.'s stronger-than-expected results released Wednesday, investors appear more confident that the banking sector, while struggling, will be propped up by some of its healthier players.

JPMorgan Chase & Co. earned $2 billion, or 54 cents per share, in the April to June period, down from $4.23 billion, or $1.20 per share, in the same time frame last year. Revenue slipped 3 percent to $18.4 billion. Analysts surveyed by Thomson Financial had predicted, on average, a profit of 44 cents share on $16.6 billion in revenue.

Sherwin-Williams profit tops forecast

CHICAGO - A weak housing market and higher material costs dragged Sherwin-Williams Co.'s second-quarter profit down 15 percent, the paint-maker said Thursday. The company said it would raise prices for the third time this year.

Sherwin-Williams also forecast that the still-souring housing sector would hamper its third-quarter results. But revenue and net income still managed to beat Wall Street forecasts, and the company's stock climbed more than 8 percent in midday trading, Shares closed at $53.83 Thursday, up $5.91, or 12.3 percent.

"We continue to manage through an unprecedented downturn in the U.S. housing market that is both deep and wide," Chairman and Chief Executive Christopher M. Connor said in a statement.

Among the hardest hit was the company's consumer group, where profit fell nearly 29 percent.

Paint stores' segment profit fell nearly 12 percent. And same-store sales - an important metrical for retailers - fell 4.5 percent, but still better than many forecasts.

Sherwin-Williams now says it expects third-quarter revenue to dip "slightly" from last year's $2.2 billion and predicts a profit for the current quarter of $1.20 to $1.45 per share. That would be down from $1.55 per share in the third quarter last year.

Elevators lift United Technologies results

HARTFORD, Conn. - United Technologies Corp.'s second-quarter profit rose 11 percent, as the maker of everything from jet engines to ventilation systems reported strong growth at its subsidiaries Otis the elevator maker, and Carrier, its air conditioner unit.

The company on Thursday also raised its full-year outlook for revenue and per-share earnings. Its shares rose 3.4 percent in late morning trade and closed Thursday at $64.70, up $3.59, or 5.9 percent.

Safeway profits edge past analyst view

PLEASANTON, Calif. - Safeway Inc. on Thursday said second-quarter profit rose to slightly beat Wall Street expectations as higher gas sales and gains from its "Lifestyle"-format stores boosted results.

However, the nation's second-largest grocery-store operator lowered its expectation for 2008 same-store sales growth excluding gas sales.

Shares declined 5.9 percent to $28.20 in morning trading and closed Thursday at $26.78, down $3.23, or 10.8 per cent.

Safeway, parent of Dominick's supermarkets in the Chicago area, said profit rose around 7 percent to $234.3 million, or 53 cents per share, from $218.2 million, or 49 cents per share, in the same quarter last year.

Media General sees loss, write-down

NEW YORK - Media General Inc. swung to a loss in the second-quarter on severance costs and lower ad revenue, and expects to take an additional charge of up to $550 million to write down the value of its intangible assets.

The preliminary results - which show a loss of $129,000, or 1 cent per share, in contrast to a year-ago profit of $5.2 million, or 22 cents per share - do not include a goodwill impairment charge expected to be between $500 million and $550 million.

The Richmond, Va.,-based newspaper publisher and television station operator will determine the exact amount when it files its quarterly report with securities regulators.