Nike sales hit record; 4th quarter profits slip

Nike Inc. posted record sales of $15 billion for its fiscal year despite a drop in fourth quarter earnings blamed on a Converse arbitration ruling and World Cup soccer spending.

Revenue grew 9 percent from $13.7 billion the previous year, while profits jumped 15 percent to $1.4 billion for fiscal 2006 compared to $1.2 billion in 2005. Earnings per share grew 18 percent to $5.28 from $4.48 a year ago.

“Fiscal 2006 was indeed one for the record books,” said Don Blair, Nike chief financial officer.

The final quarter saw some slippage, however, as the Beaverton-area athletic shoe and clothing giant saw earnings drop 5 percent to $332.8 million, or $1.27 per share, from $349.5 million, or $1.30 per share, last year.

Blair said the quarter also reflected heavy spending for World Cup soccer marketing, a cost that will ease.

•Delphi Corp. has hired more than 2,000 temporary employees to fill jobs expected to be vacated by some of the 12,600 hourly workers accepting early retirement.

The Troy, Mich.-based auto supplier, which has been in bankruptcy since October, announced the results of its attrition program Monday. Delphi has about 33,000 workers, 24,000 of which are represented by the United Auto Workers.

•Tribune Co. said Tuesday that its stock tender offer had been carried out successfully despite public opposition from the Chandler family, now its largest individual shareholder. Its shares jumped sharply.

The media company said a preliminary count showed that about 15 percent of its outstanding shares were tendered under the four-week buyback offer which expired Monday night. It said it expects to acquire all 45 million of those common shares at $32.50 apiece, which is about a 5 percent premium to Monday’s closing price.

•Management changes at troubled Airbus parent EADS are “in the process of being finalized,” French Finance Minister Thierry Breton said Tuesday, as France’s market watchdog extended its ongoing probe to the defense group’s Paris offices.

Addressing lawmakers in the National Assembly, France’s lower house, Breton also indicated France had dropped earlier demands to change the shareholder pact underpinning the delicate Franco-German balance within European Aeronautic Defence and Space Co.