Microsoft scores with 'Halo 3' sales

SEATTLE -- Microsoft said Thursday its fiscal first-quarter profit rose 23 percent as brisk sales of the new "Halo 3" video game, Windows and Office, all of which helped the software maker breeze past Wall Street's expectations.

Investors cheered, sending shares up from $31.99 to $35.16, about 10 percent, in after-hours electronic trading.

For the quarter ended Sept. 30, the software maker's profit climbed to $4.29 billion, or 45 cents per share, from $3.48 billion, or 35 cents per share, during the same period last year. Analysts on average had forecast a profit of 39 cents per share, according to a Thomson Financial poll.

Microsoft has sold 85 million copies of the Windows Vista operating system since the newest operating system went on sale in January, and 25 million since the end of July, according to Colleen Healy, general manager of investor relations for Microsoft.

DeVry

OAKBROOK TERRACE -- DeVry, a global provider of educational services, reported revenues in its first fiscal quarter increased 14.2 percent to $250.3 million, compared with $219.2 million for the same quarter one year ago.

Net income for the quarter was $26.8 million, or 37 cents per diluted share, compared to $20.9 million, or 29 cents per diluted share, last year.

During the first quarter, DeVry University opened new locations in Nashville, Tenn., Detroit and Bakersfield, Calif.

During the quarter, DeVry repurchased about 155,000 shares of its common stock at cost of about $5.4 million. To date, about 510,500 shares of stock have been purchased as part of this program for a total of $15.9 million at an average cost of $31.22 per share.

Midas

ITASCA --Midas reported net earnings of $3 million, or 21 cents per diluted share, for the third quarter ended Sept. 29, compared to net earnings of $2.4 million, or 16 cents per diluted share, in the prior year.

"Operating income was virtually flat for the quarter, despite a challenging retail environment that saw a 3.2 percent comparable shop sales decline in the U.S.," said Alan D. Feldman, chairman and chief executive officer.

Midas ended the third quarter with 80 company shops, an increase of four during the quarter.

Federal Signal

OAK BROOK -- Shares of Federal Signal fell 13 percent after the company reported a 51-percent drop in third-quarter profits. The company said the decline in earnings was due to a steep operating loss in its fire truck manufacturing operation and it forecast deeper losses for the full year.

Federal Signal's earnings fell to $4.5 million, or 9 cents per diluted share, in the quarter ended Sept. 31, compared with $9.2 million, or 19 cents per diluted share, in the same quarter last year. Analysts expected profits of 20 cents per diluted share.

Federal Signal Corp. makes safety, communications and signaling equipment for governmental, industrial and airport customers.

The company endured an operating loss of $6.7 million in its fire rescue division due to low demand and production, and expenses associated with a management change and reducing fixed costs. Net sales rose to $307.3 million, up 6 percent from $289.4 million in the same quarter last year.

Hanesbrands

WINSTON-SALEM, N.C. -- In its first year as a standalone company, underwear and hosiery maker Hanesbrands has cut costs, jobs and profits. But now the maker of Wonderbra, Champion and Playtex apparel is pointing to current and expected growth.

The costs associated with Hanesbrands' year-ago spinoff from Sara Lee again marred the company's results, which showed a third-quarter profit decline of 23 percent. Excluding expenses, Hanesbrands said its operating profit for the first three quarters of 2007 grew by a little over 2 percent.

Quarterly earnings fell to $38.9 million, or 40 cents per share, from $50.3 million, or 52 cents per share in the prior-year quarter. But interest expenses more than doubled to $40.3 million, from $17.6 million last year. Without expenses, the company posted a profit of 48 cents per share in the quarter.

Dow Chemical

MIDLAND, Mich. -- Dow Chemical said its profit fell 21.3 percent in the third quarter due to changes in German tax laws, higher domestic tax rates and charges for research and development.

The chemical manufacturer posted net income after paying preferred dividends of $403 million, or 42 cents per share, compared with a year-earlier profit of $512 million, or 53 cents per share.

The quarter was weighed down primarily by a provision for income taxes of $659 million, which was substantially higher than a tax provision of $137 million a year earlier. Excluding items, Dow reported profit of 84 cents per share for the three months that ended Sept. 30.