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.
Federal Communications Commissioner Michael Copps voted against the proposed merger between Sirius Satellite Radio Inc. (SIRI) and XM Satellite Radio Holdings Inc. (XMSR) late Monday night, The Wall Street Journal reported. It’s the first vote against the deal, as two commissioners have voted for it and two others have yet to vote. The deal must receive majority approval from the five-member FCC board to proceed.