Discover finds profit drops 65%

Sales in China and Europe powered Nike, the world's largest shoemaker. (David Zalubowksi/Associated Press)

Discover Financial Services LLC said first-quarter profit fell 65 percent to $81.2 million after shedding its card business in Britain and preparing for more defaults from US cardholders.

Excluding the UK unit sale, the credit-card lender posted a profit of $239 million, or 50 cents per share. That surpassed the average analyst forecast for 40 cents per share, according to Thomson Financial.

Last year, when Discover was part of Morgan Stanley, it reported first-quarter profit of $233.6 million, or 49 cents a share, higher than this year's 17 cents a share. Net interest revenue during the quarter rose to $1.30 billion from $1.15 billion a year ago.

Discover's profit declined partly because it set aside $305.6 million for loan losses. That quarterly provision was more than twice what it was a year ago. (AP)

General Mills Inc., the second-largest US maker of cereal, beat analysts' estimates for third-quarter profit as it shipped more Yoplait yogurt and Fiber One granola bars, and cut costs to counter soaring commodity prices.

Net income jumped 61 percent to $430.1 million, or $1.23 a share, in the three months through Feb. 24. Revenue climbed 12 percent to $3.41 billion.

Chief executive Ken Powell increased marketing spending by 13 percent, spurring demand for Nature Valley snacks, lower-calorie Progresso soups, and Totino's pizza rolls. The company also boosted prices, passing rising wheat and dairy costs on, and trimmed expenses by reducing the frequency of truck deliveries as gasoline prices soared.

Cereal sales advanced 3 percent, while total US retail revenue climbed 9.2 percent to $2.3 billion. Overseas revenue increased 20 percent to $612.8 million, bolstered by the weaker US dollar. (Bloomberg)

Nike Inc., the world's largest athletic shoemaker, said third-quarter profit rose on higher sales in China and Europe.

Net income climbed to $463.8 million, or 92 cents a share, from $350.8 million, or 68 cents, a year earlier. Analysts estimated average profit of 79 cents. Revenue rose to $4.54 billion.

Sales in China, the world's fastest-growing major economy, surged as consumers there bought shoes and athletic gear ahead of this summer's Olympic Games. Nike sold its Bauer hockey unit and bought Umbro PLC, a maker of soccer attire, for $566 million as the sportswear maker wants to replace Adidas AG as the top maker of soccer apparel by the 2010 World Cup.

Nine analysts surveyed by Bloomberg estimated average profit of 79 cents a share. They projected sales of $4.35 billion. (Bloomberg)

Guess Inc., the US clothing maker whose stock has more than tripled in the past three years, said fourth-quarter profit and sales climbed more than analysts estimated on higher revenue in Europe.

Net income rose 20 percent to $55.2 million, or 59 cents a share, from $45.9 million, or 49 cents, a year earlier.

Revenue in the three months ended Feb. 2 increased 30 percent to a record $514.6 million. Profit beat analysts' estimates by 3 cents a share, and the company reaffirmed its forecast for 2008.

European sales surged 75 percent, the biggest gain in all units.

Guess plans a stock buyback of as much as $200 million. (Bloomberg)