Wall St. Brief: Google FINED $22.5M, Alcoa Ushers in GLOOMY Earnings
Alcoa (NYSE:AA) ushered in the second quarter earnings season on Monday by reporting its earnings per share dropped to $0.06 from $0.32 in the previous year. This came in line with estimates while revenue fell 9.4 percent to $5.96 billion beating expectations. Earnings were hit by declining aluminum prices to almost two-year lows. Alcoa has maintained its global aluminum supply deficit forecast of seven percent for this year.
Google (NASDAQ:GOOG) is close to a FTC settlement, reported the Wall Street Journal. It will supposedly pay $22.5 million from charges that it bypassed the millions of privacy settings for Apple users. The financial hit could represent the biggest one on a company by the FTC and it could dampen trust in Google by users.
Duke Energy’s (NYSE:DUK) CEO Jim Rogers will appear at a North Carolina Utilities Commission hearing regarding the dismissal of former CEO Bill Johnson prior to the closing of Duke’s acquisition of Progress Energy. While unlikely, the commission does have power to overturn its approval. It has already said that had it known about the “management structure” it may have not authorized the deal.
Former Barclays (NYSE:BCS) CEO Bob Diamond has voluntarily forgone any deferred bonuses with an approximate BP20M ($31 million) value reported company Chairman Marcus Agius to a U.K. parliamentary panel; he added that the Bank of England governor Mervyn King had forced Diamond to resign. He also admitted the bank has a “strained relationship” with the Financial Services Authority.
AMD (NYSE:AMD) shares are off 9.25 percent in premarket trading after the company warned on Monday that it expects a 11 percent second quarter revenue decline; this is below the guidance range of plus or minus three percent. AMD attributed weaker-than-expected China and Europe distributor sales and the effect of low consumer spending on sales to OEMs.