Microsoft earnings up

Microsoft Corp. reported a 37 percent jump in fourth-quarter profits Thursday, citing strong sales across all its divisions, from servers to its Xbox console and video games.

For the three months that ended June 30, the world’s largest software maker said net earnings climbed to $3.7 billion, or 34 cents a share, up from $2.69 billion, or 25 cents, a share a year ago.

Revenues jumped 9 percent to $10.2 billion, up from, up from $9.3 billion a year ago.

Results, which were released after the markets closed, included a a stock-based compensation expense of 3 cents per share, legal expenses of 5 cents a share and a 9 cent per share tax benefit.

Analysts polled by Thomson Financial predicted quarterly profits of 31 cents a share, on revenue of $10.2 billion. Analysts’ estimates did not factor in the one-time charges.

Microsoft shares rose 25 cents to close at $26.44 on the New York Stock Exchange, then dropped 51 cents in late trading. The shares have traded between $23.82 and $30.20 over the past year.

“Google Inc.’s second-quarter profit quadrupled as the online search leader’s outlandish growth continued to exceed the great expectations underlying its soaring stock.

The company said Thursday that it earned $342.8 million, or $1.19 per share, for the three months ended in June. That compared with net income of $79.1 million, or 30 cents per share, at the same time last year.

Revenue for the period totaled $1.38 billion, nearly doubling from $700.2 million last year. After subtracting the commissions that Google paid to other Web sites in its advertising network, the revenue stood at $890 million, beating the Wall Street estimate of $842 million, according to Thomson Financial.

“McDonald’s Corp.’s second-quarter profits fell 10 percent on tax repatriation costs and its sales growth eased to its lowest level since the world’s largest restaurant company began a resurgence in 2003.

Despite losing some momentum, McDonald’s reported a modest gain in operating income Thursday and posted another solid showing at U.S. restaurants that have been key to its recovery.

Net income was $530.4 million, or 42 cents per share, compared with $590.7 million, or 47 cents per share, in the second quarter of 2004.

“The Coca-Cola Co., the world’s largest beverage maker, reported Thursday a 9 percent jump in second-quarter profit on solid gains in revenue, beating Wall Street expectations.

Coke said it earned $1.72 billion, or 72 cents a share, for the three months ending July 1, compared to a profit of $1.58 billion, or 65 cents a share, in the same period a year ago.

Revenue in the quarter was $6.31 billion, a 7 percent increase from the $5.91 billion recorded in the same three-month period a year ago.

“Delta’s ability to stay out of bankruptcy grew even more uncertain Thursday as the nation’s third-largest airline posted a $388 million second-quarter loss to push its red ink to just under $10 billion since early 2001.

Chief executive Gerald Grinstein said Delta will review those items in determining its future course. Fitch Ratings airline analyst Bill Warlick said Atlanta-based Delta will be forced into Chapter 11 if Congress doesn’t enact meaningful pension reform by the fall.

“UPS Inc., the world’s largest shipping carrier, reported Thursday a more than 20 percent jump in second-quarter profit on strong growth in revenue and said its full-year earnings will be at the higher end of its expected range.

UPS said it now expects an increase of 18 percent to 20 percent in earnings per share for all of 2005. In May, UPS executives said at an investor conference in New York that the company expected full-year profit growth to be in the range of 16 percent to 20 percent.

Atlanta-based UPS earned $986 million, or 88 cents a share, for the three months ending June 30, compared to a profit of $818 million, or 72 cents a share, for the same period a year ago.