Slide gets steeper for BlackBerry maker RIMResearch In Motion Ltd., maker of the BlackBerry smartphone, forecast second-quarter revenue and profit that missed analysts' estimates and said it will cut jobs as a lack of new models prompts consumers to buy rival devices. The stock fell as much as 16 percent in after-hours trading after RIM, based in Waterloo, Ontario, said profit this quarter will be 75 cents to $1.05 a share. Analysts predicted $1.40, excluding some costs, according to a Bloomberg News survey. Revenue will be $4.2 billion to $4.8 billion in the three months through August, RIM said, compared with the average estimate of $5.47 billion.
Grocer Kroger raises full-year profit forecastKroger Co., the largest U.S. grocery chain, raised its full-year profit forecast after sales surged last quarter, pushing the shares up the most since October 2009. Earnings will be as much as $1.95 a share, Cincinnati-based Kroger said. That compares with a previous forecast of up to $1.92. Analysts on average anticipated $1.90, according to a Bloomberg News survey. Total sales surged 11 percent to $27.5 billion in the first quarter, bolstered by fuel sales. Kroger's shares advanced $1.04, or 4.5 percent, to $23.99.
Next up in IPO sweepstakes: Angie's List?Angie's List Inc., a website that provides consumer reviews, is preparing to file in August for an initial public offering, Bloomberg News reported. The Indianapolis-based company has chosen Bank of America Corp. to lead the IPO, Bloomberg said, citing anonymous sources. The size of the offering hasn't been decided. Angie's List would join the biggest surge in Internet share sales since the dot-com boom a decade ago.
Hershey's interim CEO gets permanent titleHershey Co., the maker of chocolate Kisses and Reese's candies, promoted John Bilbrey to chief executive to lead its push into developing markets. Bilbrey, 54, was also named to the board, the Hershey, Pa.-based company said. He joined the company in 2003 and had been interim chief since last month, when former CEO David West departed to lead Del Monte Foods Co. Bilbrey, who was promoted to operations chief last year, will oversee a drive into emerging countries such as China to fuel sales growth.
Toyota's production recovery is ahead of planToyota Motor Corp., slowed by tight parts supplies since Japan's record earthquake in March, said vehicle production at its North American plants is recovering faster than planned and will return to normal in September. Full output of eight models, including Camry and Corolla cars, Sienna minivans and Highlander sport-utility vehicles, was restored June 6, and Tundra and Tacoma pickups and RAV4 and Lexus RX SUVs will reach that level by September, said Bob Carter, group vice president of U.S. sales. Toyota in April estimated that pre-quake production would resume in November.
30-year mortgage rates tick up to 4.5 percentMortgage rates for 30-year U.S. loans rose for the first time in nine weeks, snapping the longest stretch of declines in more than two years. The average rate for a 30-year fixed loan climbed to 4.5 percent in the week ended Thursday from 4.49 percent, according to Freddie Mac. The 15-year rate decreased to 3.67 percent from 3.68 percent a week ago, the mortgage finance company said. Borrowing costs are close to the lowest level this year after an eight-week decline in mortgage rates, the longest since January 2009.
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