Global Investing Roundups

Wachovia Cuts Dividend and Jobs; Caterpillar Builds a Global Business; Home Prices Collapse; UPS Delivers More Revenue, Less Profit; Fed Directors Split; Oil Hits Six-Week Low; UAL Stock Soars; Two For, One Against Satellite Radio Deal

  • Wachovia Corp. (WB) said yesterday (Tuesday) that it lost $8.86 billion in the second quarter and would be forced to slash its dividend and cut 10,750 jobs. Wachovia said it lost the equivalent of $4.20 per share in the April-June period. Over the same period of time last year, the bank earned $2.34 billion, or $1.22 per share.
  • Caterpillar Inc.'s (CAT) second-quarter profit jumped 34%, $1.11 billion, or $1.74 per share, for the three months ended June 30, compared with $823 million, or $1.24 per share, a year earlier. While the domestic market falter overseas sales for the company increased 60% of quarterly sales and revenue coming from outside North America, up from 55% a year earlier.
  • The Office of Federal Housing Enterprise Oversight said yesterday (Tuesday) that U.S. home prices fell a record 4.8% in May from the same month last year. On a seasonally adjusted basis, prices fell 0.3% from April to May. The index is down almost 5% from its peak in April of last year, the Associated Press reported.
  • United Parcel Service Inc. (UPS) said yesterday (Tuesday) that its profit fell nearly 21% in the second quarter despite a more than 6% increase in sales. Profit was $873 million, or 85 cents a share, in the second quarter, compared to $1.10 billion, or $1.04 a share, for the same period a year ago. Revenue grew to $13 billion from $12.2 billion. "We're feeling the impact of higher energy costs throughout the company," Chief Executive Scott Davis told the Associated Press.