Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts
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Best Buy's (BBY) First-Quarter Profit Income Falls
Best Buy's First-Quarter Profit Income Falls - Best Buy Co.'s (BBY) fiscal first-quarter profit rose a disappointing 1.3% as sales rebounded slightly from last year's weak levels but spending tied to new stores and other growth initiatives was higher than expected.
The biggest U.S. consumer-electronics retailer by sales reiterated its financial view for the year and estimated it gained one percentage point of market share from a year earlier in what's typically Best Buy's smallest quarter of the year.
Sales during the company's fiscal 2011 first quarter rose 6.9% to $10.8 billion, from $10.1 billion a year earlier, falling short of Wall Street's forecast of $10.9 billion. In last year's previous quarter, the company's profits reached $153 million, or 36 cents per share, and 42 cents per share on an adjusted basis.
Revenue climbed 6.9% to $10.79 billion, while same-store sales--or revenue at stores, call centers, and websites operating for at least 14 full months--climbed 2.8% after a 6.2% drop a year ago.
The first quarter is seasonally Best Buy's weakest for sales and was expected to represent only about a fifth of sales and less than 15% of net income for the year.
Gross margin rose to 25.9% from 25.3%--slightly better than analysts expected--on what Best Buy called increased promotion effectiveness and strength at Best Buy Mobile.
Best Buy reported earnings of only $155 million, or 36 cents per share, well below the 50 cents per share the Street expected.
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Mc Donalds Shrek Glass Recall : Cadmium Toxic Paint on it
Mc Donalds Shrek Glass Recall- The recall, which will be officially announced Friday by the Consumer Product Safety Commission, was set in motion by an anonymous tip to Rep. Jackie Speier (D-Hillsborough) last week. She alerted the commission, which tested the glasses and confirmed the presence of cadmium in the paint used for the decorative characters. Cadmium is a carcinogen and can cause kidney, lung, intestinal and bone damage.A McDonald's spokesman, Walt Riker, said in an interview: "We've had a good, constructive two-way dialogue with the congresswoman's office and with the Consumer Product Safety Commission."
Although Speier commended McDonald's for acting quickly, her office said the fast-food giant and other corporations must "do a better job of thoroughly reviewing their domestic and international supply chains to keep products with potentially dangerous elements from ever hitting their shelves."
It was not immediately known where the glasses were produced or how the paint used in the "Shrek" characters came to contain cadmium.
"Our children's health should not depend on the consciences of anonymous sources," Speier said. "Although McDonald's did the right thing by recalling these products, we need stronger testing standards to ensure that all children's products are proven safe before they hit the shelves. Cadmium is a toxic substance that is extremely dangerous to the developmental health of children."
The commission declined to comment Thursday evening. In the past, the commission has warned manufacturers to avoid cadmium in children's products, and last month it ordered the recall of children's jewelry contaminated by the toxic metal.
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