Earnings report: Starbucks profit up 25% in Q2

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Posted: Friday, July 26, 2013 12:00 am

NEW YORK (AP) — Starbucks says its profit climbed 25 percent in the most-recent quarter as sales rose and its coffee costs eased.

The results topped Wall Street expectations, and the company raised its full-year guidance.

The chain, which has more than 19,000 locations around the world, said global sales rose 8 percent at cafes open at least 13 months, with all regions registering growth. In the U.S. market, the figure rose 9 percent.

Starbucks, meanwhile, has been tweaking the products in its cafes to boost sales. In April, it rolled out revamped sandwiches in new packaging with slightly higher prices.

Amazon.com

SAN FRANCISCO (AP) — Amazon.com is reporting a loss in the second quarter as higher revenue was not enough to make up for rising operating expenses. The world's largest online retailer has been spending heavily on order fulfillment and digital content rights, which continue to weigh on profit margins.

Amazon.com Inc., which also makes the Kindle tablets and e-reader devices, said Thursday that its loss was $7 million, or 2 cents per share, in the April-June quarter. That's down from earnings of $7 million, or 1 cent per share, a year ago.

General Motors

DETROIT (AP) — Just as General Motors is getting a handle on its troubles in Europe, the automaker faces a new challenge in another part of the globe.

GM says Japanese automakers are using the weak yen to cut prices in Southeast Asia and Australia, taking a bite out of GM's profits there. Sales tailed off in India as well.

A subpar second-quarter performance in the company's international operations division pulled GM's overall profit down 16 percent from last year, offsetting gains in North America and a stark improvement in Europe.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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