BUSINESS BRIEFS
Walgreen's profit rises 2%; earnings at 58 cents a share
Associated Press
CHICAGO — Drugstore chain Walgreen Co. said yesterday its third-quarter profit rose 2 percent as it focused on cost control and maintained a rapid expansion pace.
Despite the modest gain, the results fell slightly short of Wall Street's expectations and Walgreen shares slipped back after initially climbing nearly 3 percent.
Overall, however, analysts said the Deerfield, Ill.-based company's cost discipline and continued advances in a weak economy shows it has turned a corner after recent sluggishness.
Shares fell 37 cents to $34.70 yesterday. Earnings for the three months ended May 31 were $572.3 million, or 58 cents per share, up from $561.2 million, or 56 cents per share, a year earlier.
VISA PAYS $2M TO MARKET FACEBOOK
SAN FRANCISCO — Facebook Inc.'s quest to lure more advertisers to its popular online hangout is getting an assist from Visa Inc.
As part of a small-business network Visa designed for Facebook, the world's largest credit and debit card processor is paying for $2 million of advertising on the socializing site. Visa also will promote the new Facebook service in a multimedia marketing campaign beginning next month.
Visa is giving a $100 advertising credit on Facebook to each of the first 20,000 U.S. businesses that download the Web application needed to join the network, which debuts today. About 80,000 small businesses already have profiles on Facebook.
Visa's service is designed to provide small-business owners with tools and tips on attracting new customers, trimming costs and other ways to make more money.
HANKS SUPPORTS CONTRACT DEAL
LOS ANGELES — Tom Hanks has thrown his support behind a contract deal reached by the smaller of two actors unions, tossing a wrench into plans by the larger union to wring more concessions from the major Hollywood studios.
Hanks added his name to an e-mail petition urging members to vote for a deal reached May 28 by the American Federation of Television and Radio Artists and avoid another Hollywood work stoppage on the heels of the 100-day writers strike, which put many actors out of work.
The Screen Actors Guild continued to negotiate with studios yesterday, and has urged its members to vote down the AFTRA deal.
Both unions' contracts on prime-time TV shows and movie productions expire June 30.
INVESTORS BLAMED AGAIN FOR OIL COSTS
WASHINGTON — Lawmakers continue to blame large investors for their role in propping up oil prices, pointing out yesterday that speculation in crude futures has nearly doubled since 2000.
Pension funds, Wall Street banks and other large investors that have no intention of taking delivery of fuel have increasingly pumped money into contracts for oil and other commodities as a hedge against inflation.
After more than a half dozen hearings in Congress on the issue, Democratic House lawmakers said they intend to tighten restrictions on pension funds, investment banks and other large investors that they blame for driving up fuel prices.
Many analysts and regulators, however, say soaring oil prices are a reflection of macro-economic factors, including the falling dollar, unrest in the Middle East and increased demand from other countries.
IPHONE WILL COST $215 IN JAPAN
TOKYO — Softbank Corp., the carrier that won the coveted right to sell the iPhone in Japan, said yesterday that Apple Inc.'s device will sell for $215.
The iPhone is due to debut in Japan on July 11, as Apple rolls out a new version and expands the availability to 20 countries.
Softbank, Japan's No. 3 mobile phone company, said it will subsidize its subscribers' mobile phone bills for two years so as to make the cost of the 8-gigabyte iPhone $215. The 16-gigabyte version will cost $320.
