Amazon's market value tops Wal-Mart's
Amazon.com Inc. surpassed Wal-Mart Stores Inc. as the world's biggest retailer by market value after a surprise second-quarter profit sent the e-commerce company's stock into record territory.
The shares rose $47.24, or 9.8 percent, to close Friday at $529.42, giving Amazon a value of about $246 billion. That compares with Wal-Mart's $230 billion market capitalization.
Wal-Mart still dwarfs Amazon in terms of sales, with about five times its annual revenue. But Amazon has solidified its dominance in e-commerce, forcing its big-box rival to play catch-up. Wal-Mart is investing heavily in its Web operations and developing its own online subscription service to compete with Amazon Prime.
Amazon's market value has been steadily gaining on Wal-Mart's this year. Amazon was already up 55 percent in 2015 through Thursday's close, while Wal-Mart has slid 16 percent.
Amazon posted revenue of $23.2 billion last quarter, a 20 percent gain. That topped analysts' average projection of $22.4 billion. Net income was $92 million, or 19 cents a share, the company said. Analysts had estimated a loss of 14 cents.
-- Bloomberg News
FCC gives OK to AT&T's DirecTV takeover
The Federal Communications Commission on Friday approved AT&T Inc.'s $48.5 billion takeover of DirecTV with conditions, making the former telephone company a new powerhouse in the television business with international reach.
The FCC will require AT&T to expand broadband service to more U.S. cities and take steps to ensure rivals' online video is treated fairly. The integration of AT&T and DirecTV will occur over the coming months, the companies said in a statement.
With DirecTV, AT&T becomes the No. 1 pay-TV company in the U.S. and gains a stronger negotiating position with media companies over TV programming costs.
"We're now a fundamentally different company with a diversified set of capabilities and businesses that set us apart from the competition," AT&T Chief Executive Officer Randall Stephenson said in a statement.
AT&T struck its deal for the El Segundo, Calif.-based satellite-TV service more than 14 months ago, after Comcast Corp. agreed to buy No. 2 cable provider Time Warner Cable Inc., a deal that was scrapped.
-- Bloomberg News
Fiat Chrysler recalls 1.4 million vehicles
Fiat Chrysler Automobiles NV is recalling about 1.4 million cars and trucks equipped with radios that are vulnerable to hacking.
The company was already distributing software to insulate connected vehicles from illegal remote manipulation after Wired magazine published a story about software programmers who were able to take over a Jeep Cherokee being driven on a Missouri highway. Fiat Chrysler reiterated that it's not aware of any real-world unauthorized remote hack into any of its vehicles.
It stressed that no defect was found and that it's conducting the campaign out of "an abundance of caution."
Fiat Chrysler said it has blocked unauthorized remote access to certain vehicles systems via an over-the-air update Thursday.
The recall covers almost 1 million more models than those initially identified as needing a software patch. The action includes 2015 versions of Ram pickups, Jeep Cherokee and Grand Cherokee SUVs, Dodge Challenger sports coupes, and Viper supercars.
-- Bloomberg News
Blue Bell begins production trial runs
BRENHAM, Texas -- Blue Bell Creameries has started ice cream production trial runs in Alabama three months after a listeria scare halted all sales.
The Texas-based company said it's evaluating the enhanced production processes at its plant in Sylacauga, Ala.
Blue Bell earlier this month notified federal and Alabama health officials of its plans for test production. The runs began Wednesday. Company officials Friday didn't immediately return messages. Blue Bell has not said when sales will resume.
Blue Bell products were linked to 10 illnesses in four states, including three deaths in Kansas, before a voluntary recall April 20.
Listeria is a bacteria that can cause serious illness, especially in older adults, pregnant women and those with weakened immune systems. Contaminated products were found at Blue Bell's Texas and Oklahoma plants.
-- The Associated Press
Italy tourists facing slowdowns, strikes
ROME -- Italy's summer of woe is getting worse -- as tourists face record-high temperatures, labor slowdowns, one strike at the Pompeii archaeological site and another at Alitalia that forced the cancellation of dozens of flights.
On Friday, Rome Mayor Ignazio Marino fired the leadership of the ATAC public transport company and issued a public apology for the "unacceptable problems" that have slowed down transportation in the capital in recent weeks. Those included transport employees showing up for work but barely doing their jobs.
Separately, Alitalia canceled 15 percent of its flights Friday because of a walkout by pilots and flight attendants.
Farther south, hundreds of tourists lined up for hours in the sun Friday outside the gates of Pompeii, near Naples, after unions called a wildcat strike.
-- The Associated Press
Criminal probe targets Sikorsky billings
United Technologies Corp. said a federal criminal investigation is underway into allegations that the Sikorsky helicopter unit and two subsidiaries overbilled the U.S. government for years in connection with a 2006 Navy contract.
The U.S. Justice Department inquiry was disclosed Friday in a United Technologies filing and follows an October lawsuit against Sikorsky Aircraft and the two units, with the government alleging unjust enrichment and other violations of the False Claims Act. United Technologies gave no details of the criminal angle other than to say it was related to the suit.
Sikorsky and the subsidiaries, Derco Aerospace and Sikorsky Support Services Inc., "intend to cooperate fully" in the investigation, which was disclosed to the companies in a July 13 letter, United Technologies said in the filing.
United Technologies agreed this week to sell Sikorsky to Lockheed Martin Corp. for $9 billion as the company moves away from aircraft production in favor of systems manufacturing in the aerospace and building services industries. United Technologies has said Sikorsky's heavy reliance on government contracts limits its profitability.
The investigation "was discussed as part of the transaction with Lockheed Martin and is not expected to affect the close," John Moran, a United Technologies spokesman, said in a statement. The companies said this week they expect to complete the deal by early 2016.
Peter Carr, a Justice Department spokesman, said he couldn't immediately comment on the investigation.
-- Bloomberg News
Business on 07/25/2015