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Reuters Canada Business Summary

31/01/07

Google profit rises

NEW YORK (Reuters) - Google Inc. said on Wednesday quarterly profit nearly tripled, helped by a lower tax rate, but revenue growth was largely in line with Wall Street expectations despite some hopes of an upside surprise. The news pushed shares in the Web search leader down more than 3 percent in after-hours trading.

Starbucks 1st-quarter profit up 18 percent

LOS ANGELES (Reuters) - Starbucks Corp. , the world's largest coffee shop chain, on Wednesday said quarterly earnings rose 18 percent as the number of stores grew and established outlets attracted more customers. Net income for the fiscal first quarter was $205 million, or 26 cents per share, compared with $174 million, or 22 cents per share, a year ago.

Dell says founder Michael Dell to take over as CEO

SAN FRANCISCO (Reuters) - PC maker Dell Inc. said on Wednesday that founder and Chairman Michael Dell would become chief executive, effective immediately, replacing former CEO Kevin Rollins. Dell also said its fiscal fourth-quarter results would be below the average of First Call Estimates for both revenue and earnings per share.

Canadian dollar, bonds rise after Fed statement

TORONTO (Reuters) - The Canadian dollar shot to its highest level in four days against the U.S. dollar on Wednesday, rebounding from early weakness after the U.S. Federal Reserve left interest rates unchanged and issued a somewhat dovish statement. Domestic bond prices rose after the Fed announcement.

AGF Management profit down 25 pct, sales on a roll

VANCOUVER, British Columbia (Reuters) - AGF Management Ltd. posted a 25 percent drop in fourth-quarter profit on Wednesday when compared with year-before figures that were boosted by gains from an operation that has since been sold. The company, Canada's third-largest publicly traded fund management firm, reported net income of C$21 million ($17.8 million), or 23 Canadian cents a share, for the three months ended November 30. That compared with earnings of C$28 million, or 31 Canadian cents a share, in the same quarter in 2005.

Toronto stock index sets record closing high

TORONTO (Reuters) - The Toronto Stock Exchange's main index ended at a record closing high on Wednesday, helped up by rallying gold prices and the U.S. Federal Reserve's decision to hold interest rates steady, which offset a weak forecast from Celestica Inc. The Toronto Stock Exchange S&P/TSX composite index <.GSPTSE> closed up 19.52 points, or 0.15 percent, at 13,034.12, surpassing its previous record high close of 13,021.77, set on December 14.

Microsoft says Zune executive to leave the company

SEATTLE (Reuters) - A senior Microsoft Corp. executive who oversaw the launch of its Zune digital music player plans to leave the company, the world's largest software maker said on Wednesday. Bryan Lee, corporate vice president at Microsoft's entertainment and devices division, also played a key role in shaping the Xbox game console business and the introduction of its Internet Protocol television software.

Sierra Wireless profit beats expectations

TORONTO (Reuters) - Sierra Wireless Inc. reported a fourth-quarter profit that beat expectations on Wednesday, as new products and strong sales of its AirCard wireless modems pushed revenue to a record. The company said it earned $2.4 million, or 9 cents a share, for the three months ended December 31 That was up from a profit of $911,000, or 4 cents a share, in the same period a year earlier.

Canada economy sluggish, manufacturing shines

OTTAWA (Reuters) - Canada's economy grew a weaker-than-expected 0.2 percent in November from October but a rare surge in manufacturing output had economists cautiously predicting the worst of the downturn was over. The November gain, reported by Statistics Canada on Wednesday, followed a stagnation of economic activity in October as Canada's export-dependent economy stumbled from the effects of slowing U.S. demand for its goods.

Dow closes at record high after Fed

NEW YORK (Reuters) - U.S. stocks climbed on Wednesday, driving the Dow to a record close after the Federal Reserve left rates steady and flagged no new concerns about inflation that would have merited higher borrowing costs. Based on the latest available data, the Dow Jones industrial average unofficially ended up 98.62 points, or 0.79 percent, at 12,621.93, while the Standard & Poor's 500 Index gained 9.66 points, or 0.68 percent, to finish unofficially at 1,438.48, and the Nasdaq Composite Index advanced 15.34 points, or 0.63 percent, to close unofficially at 2,463.98.

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