Oracle profit soars 27% on sales growth

Oracle Corp. posted a 27% increase in fiscal fourth-quarter profit Wednesday and overtook IBM Corp. as the second-largest software maker.

Net income in the quarter ended May 31 rose to $2.04 billion, or 39 cents a share, from $1.6 billion, or 31 cents, a year earlier, Redwood City, Calif.-based Oracle said. Still, the company’s first-quarter forecast signaled that growth might ebb, sending the shares down 3.4% in extended trading.

International sales and rebounding U.S. orders helped Oracle withstand a slowing economy last quarter. Chief Executive Larry Ellison also has spent more than $33.5 billion on acquisitions, adding business applications to its database software.

Excluding acquisition costs and some other expenses, profit rose to 47 cents a share last quarter, topping the average analyst estimate of 44 cents.

Sales climbed 24% to $7.24 billion. Including acquired companies, sales advanced to $7.28 billion in the quarter. That compares with a $6.88-billion average estimate.

For the current quarter, Oracle forecasts profit, excluding some items, of 26 cents to 27 cents a share. Revenue is expected to advance 18% to 20%, indicating sales of $5.42 billion to $5.51 billion. Analysts had estimated a profit of 27 cents a share on $5.37 billion in sales.

Oracle shares fell 76 cents to $21.79 in extended trading after closing at $22.55, up 32 cents.

General Mills profit drops 17%

General Mills Inc. said accelerating costs for ingredients and fuel may spur additional price increases after it started charging more for cereal and soup in the last few weeks.

The Minneapolis company projected that commodity and energy expenses would rise by $500 million in the year through May 2009, after increasing $345 million last year. The maker of Green Giant frozen vegetables has raised prices of Yoplait yogurt, snacks and other products this year as costs for corn, cocoa and truck fuel have climbed.

Net income in its fiscal fourth quarter ended May 31 fell 17% to $185.2 million, or 53 cents a share, from $224.1 million, or 62 cents, a year earlier, after gains from commodities hedging declined. Profit excluding trading rose to 73 cents, matching the estimate the company gave June 18.

Revenue climbed 13% to $3.47 billion, General Mills said.

Earnings for the 12 months ending May 2009 will rise to $3.78 to $3.83 a share from $3.52, the company reaffirmed.

General Mills shares fell $1.21, or 1.9%, to $61.19.

BlackBerry maker misses estimates

Research in Motion Ltd., maker of the BlackBerry e-mail phone, missed analysts’ profit estimates for the first time in five quarters and gave a disappointing forecast amid higher spending to take on Apple Inc.’s new iPhone.

Its shares fell 9% after the Waterloo, Canada-based company reported fiscal first-quarter profit of 84 cents a share, trailing the 85 cents predicted by analysts in a Bloomberg survey. Earnings this quarter will be as little as 84 cents a share, compared with the 92-cent average prediction.

Co-Chief Executive James Balsillie boosted selling and marketing expenses by 84% in the quarter to counter the buzz of the iPhone and new handsets from smaller rival Palm Inc. Apple will release a faster iPhone next month that costs $199, cheaper than some BlackBerry models. That may hinder Research in Motion’s expansion beyond its corporate stronghold.

Sales more than doubled to $2.24 billion in the quarter ended May 31, missing analysts’ average prediction of $2.27 billion. Net income of $482.5 million was more than twice last year’s $223.2 million, or 39 cents a share.

Shares fell $12.73 to $129.61 in extended trading after closing at $142.34, up $1.86.

CKE Restaurants profit grows 8%

Fast-food chain operator CKE Restaurants Inc. said its fiscal first-quarter profit rose 8%, helped by an increase in same-store sales at Carl’s Jr. restaurants and a lower share count.

For the quarter ended May 19, net income rose to $16.6 million, or 31 cents a share, from $15.4 million, or 23 cents, a year earlier. Analysts polled by Thomson Financial expected profit of 27 cents a share.

The Carpenteria, Calif., company said the 2009 per-share result was based on 13.9 million fewer shares outstanding.

Sales fell 3% to $466.2 million. Analysts predicted revenue of $465.5 million.

Sales at locations open at least a year, rose 1.8% systemwide. By brand, same-store sales rose 3.9% at Carl’s Jr. and fell 0.6% at Hardee’s.

Shares fell 5 cents to $12.25 in after-hours trading. During regular trading, shares rose 54 cents, or 4.6%, to close at $12.30.

From Times Wires Services