Also
* Gov. Arnold Schwarzenegger named Richard Smith interim director for the Office of Ratepayer Advocates, the independent consumer advocacy arm of the California Public Utilities Commission. Smith, who was a deputy director of the office, replaces Regina Birdsell.
* General Motors Corp., the world’s largest automaker, has begun offering car loans through its finance venture in China, betting that access to credit will boost sales in the world’s No. 3 vehicle market.
* Nestle posted a 2% increase in profit for the first half of the year as it faced higher prices for raw materials, including milk and coffee. Nestle reported net profit of $2.28 billion on sales of $34.13 billion.
* Longs Drug Stores Corp. said second-quarter net income dropped 36% because of a $6.7-million charge to settle two lawsuits. Quarterly income totaled $3.4 million, or 9 cents a share, down from $5.3 million, or 14 cents, a year ago. Sales increased 5% to $1.15 billion.
* Mall-based specialty retailer Hot Topic Inc. said second-quarter earnings fell 21% on lower same-store sales and higher operating expenses related to a jump in store openings. The City of Industry company reported net income of $4.6 million, or 10 cents a share, compared with $5.9 million, or 12 cents, a year ago. Sales rose 18% to $136.3 million.
* Discount clothing retailer Ross Stores Inc. of Pleasanton, Calif., said second-quarter net income fell 40% to $32.6 million, or 22 cents a share, including a write-down of $11 million, or 7 cents a share, for the former headquarters and distribution center in Newark, Calif. Sales rose 5% to $1.01 billion.
* A U.S. appeals court upheld a jury’s findings that Dorel Industries Inc. infringed two Mattel Inc. patents, clearing the way for the world’s largest toymaker to seek more damages at a new trial. A jury awarded Mattel’s Fisher-Price unit $1.9 million from Dorel’s Safety 1st subsidiary in January 2003 over patents for portable bassinets and bouncers.
* Newport Beach-based Ruby Restaurant Group, operator of 37 Ruby’s Diners in six states, said that Fred LeFranc, its president and chief operating officer, would be stepping down by the end of the year.
