Novartis AG posts 18% earnings rise

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Drug maker Novartis AG posted an 18 percent rise in second-quarter earnings, led by strong sales across its divisions.

The company saw its profit increase to $2 billion in the three months ended June 30, exceeding analysts' forecasts of around $1.9 billion. Sales rose 10 percent to $10.12 billion from $9.18 billion in the same period last year. (AP)

State Street raises its sales forecast

State Street Corp., the largest institutional money manager, said second-quarter earnings climbed 61 percent and raised its 2007 sales forecast as the worldwide rally in stock prices increased fees.

Net income rose to $366 million, or $1.07 a share, from $227 million, or 68 cents, a year earlier, the Boston company said. The company had been expected to earn a $1.02 a share, based on a survey of 14 analysts by Bloomberg.

Revenue rose 16.4 percent to $1.9 billion, while expenses gained 15.5 percent to $1.4 billion. Fees from securities servicing climbed 12 percent to $766 million and investment-management fees advanced 22 percent to $284 million.

State Street benefited from equity-market gains that expanded the assets on which it earns investment and record-keeping fees from mutual funds and hedge funds. It lifted its 2007 revenue-growth forecast by four percentage points to 20 percent to 22 percent after completing the purchase of smaller rival Investors Financial Services Corp. this month. (Bloomberg)

Yahoo Inc. hurt by rival's gains

Yahoo Inc., owner of the most visited US website, said second-quarter profit fell 2.3 percent as Google Inc. extended its lead in Internet search queries and new rivals took sales in display advertising.

Yahoo said net income dropped to $160.6 million, or 11 cents a share, from $164.3 million, or 11 cents a share , a year earlier. Sales, excluding revenue passed on to partner sites, rose 11 percent to $1.24 billion, the Sunnyvale, Calif.-based company said.

Second-quarter profit matched the average analyst estimate of 11 cents a share, according to a Bloomberg survey. Sales also met analysts' expectations. (Bloomberg)

J&J sales aided by key acquisition

Health care products maker Johnson & Johnson posted a 9 percent increase in second-quarter profit, but needed a big sales boost from buying Pfizer Inc.'s line of consumer health products to offset the continuing decline in sales of its key stent and a top drug.

The New Brunswick, N.J.-based maker of contraceptives, contact lenses, prescription drugs, and baby products reported net income of $3.08 billion, or $1.05 per share, up from $2.82 billion, or 95 cents a share, a year earlier.

Analysts expected earnings of $1 per share.

Sales totaled $15.13 billion, up from $13.36 billion a year earlier and above analysts' expectations of $15.06 billion.

Excluding the December acquisition of Pfizer Consumer Healthcare, sales were up 3.6 percent. Favorable currency exchange rates boosted revenue by 2.4 percent. (AP)

Intel revenue up 8% in 2d quarter

Intel Corp. said its second-quarter profit jumped 44 percent on strong microprocessor sales even as the company faced fierce competition that pushed prices lower.

The Santa Clara, Calif.-based chip maker's net income for the three months ended June 30 was $1.28 billion, or 22 cents per share, compared with $885 million, or 15 cents per share, during the same period of the previous year.

Were it not for one-time tax gains, Intel's profit for the latest quarter would have been lower by 3 cents per share. Analysts were expecting Intel to earn 19 cents per share.

Intel exceeded analysts' revenue expectations, ringing up $8.68 billion in the second quarter, an 8 percent increase over the $8 billion it reported in the same period last year.

But investors seemed displeased with the company's closely watched gross profit margin, which fell to 46.9 percent of revenues -- at the low end of the company's forecast -- because of lower microprocessor selling prices and weak demand for NOR flash memory chips, which are primarily used in cell phones. Intel is in the process of unloading its troubled NOR flash division. (AP)

Merrill Lynch aided by market gains

Merrill Lynch & Co., the third-largest securities firm, said profit rose 31 percent as stock- market gains and historically low financing costs spurred more trading, share sales, and takeovers.

Net income in the second quarter jumped to $2.14 billion, or $2.24 a share, from $1.63 billion, or $1.63 a share , a year earlier, New York-based Merrill said. That exceeds the average estimate of $2.02 a share in a Bloomberg survey of 17 analysts.

Revenue rose 19 percent to $9.73 billion, and Merrill said its annualized return on equity, a measure of how well the firm reinvests earnings, climbed to 22.4 percent from 18.6 percent a year earlier. (Bloomberg)