LOCAL BUSINESS
Insurer sets dividend
Richfield’s National Interstate Corp., which specializes in insurance for the transportation industry, on Friday approved a quarterly dividend of 10 cents a share, payable Sept. 4 to shareholders of record Aug. 20. The company offers insurance for passenger, truck, and moving and storage transportation companies, among others. In 2005, National Interstate was spun off from Cincinnati’s American Financial Group in an initial public offering.
Appeal of closing filed
The owner of Summit Check Cashing, at 1344 S. Arlington St. in the Arlington Plaza in South Akron, is appealing a state order to shut down its money-transmitting business. Consumers without bank checking accounts use such services to pay utility bills.
Ola Zayed, owner of Summit Check Cashing, asks in a complaint filed this week in Summit County Common Pleas Court that the order be set aside. The order was issued by the state’s Department of Commerce.
Zayed’s complaint says the commerce department’s order, issued in July, came after a local couple alleged in a breach-of-contract lawsuit that they gave Summit Check Cashing money for a utility bill that was not paid. The couple won a judgment against Summit Check Cashing in Akron Municipal Court.
EARNINGS
Kellogg profits down
For the three months that ended June 30, Kellogg said it earned $301 million, or 84 cents a share, down 12 percent from $343 million, or 94 cents a share, a year earlier.
The current quarter’s results included 7 cents a share in costs related to a Pringles deal and a one-time benefit of 2 cents a share tied to the buyout of the snacks maker.
Analysts expected earnings of 85 cents a share, according to a poll by FactSet.
Revenue for the Battle Creek, Mich., company edged up 2 percent to $3.47 billion. That beat Wall Street’s estimate of $3.38 billion.
Income flat at DirecTV
DirecTV, the largest U.S. satellite television service. reported second-quarter profit that trailed analysts’ estimates after posting the company’s first net decrease in U.S. subscribers.
Net income rose 1.4 percent to $711 million, or $1.09 a share, from $701 million, or 91 cents, a year earlier, the company said.
Chief Executive Officer Mike White said earlier this year that DirecTV was refocusing its strategy on customer retention, rather than acquiring new subscribers. The company reported a loss of 52,000 subscribers in the quarter, more than the 22,000 average of 14 analyst estimates compiled by Bloomberg. Total sales increased 9.5 percent to $7.22 billion, in line with the average estimate. U.S. average revenue per user rose 4.2 percent to $94.40, compared with an estimate of $93.93.
Tire company raises outlook
German-based Continental AG, Europe’s second-largest auto-parts maker, raised forecasts for revenue and profitability this year after a decline in raw material costs and growth in sales helped second-quarter profit.
Revenue will rise more than 7 percent to exceed $39.8 billion, while adjusted earnings as a proportion of sales will beat the 2011 figure, the company said. That compares with previous targets of boosting sales 5 percent and matching the 2011 profit margin.
Berkshire profits down
Second-quarter profits at Warren Buffett’s Berkshire Hathaway Inc. fell 9 percent because of bigger paper losses on derivatives the company sold. Berkshire said it generated $3.1 billion net income, or $1.25 per Class B share. That’s down from last year’s second-quarter net income of $3.4 billion, or $1.38 per Class B share. And last year’s quarter was helped by a one-time $1.25 billion gain. The results topped the $1.19 per share Wall Street was expecting.
TECHNOLOGY
Wireless buy for AT&T
AT&T Inc. is buying NextWave Wireless Inc., a company that holds the right to sections of wireless spectrum that could be used for broadband. AT&T is paying up to $600 million in cash, most of which will go toward paying off NextWave debt.
Compiled from staff and wire reports