Internet advertising revenue jumped 40 percent in the first half of this year, driven largely by the growing popularity of keyword ads tied to search results. U.S. revenue for the first six months was $4.6 billion, compared with $3.3 billion for the same period in 2003, according to a PricewaterhouseCoopers study conducted for the Interactive Advertising Bureau. Search made up 40 percent of the ad revenue in the second quarter of 2004, compared with 29 percent in the year-ago period. Ad revenue from e-mail marketing dropped 29 percent in the second quarter, to $47 million, as many Internet users equated legitimate pitches with spam.
Boeing, IBM Team Up for Contracts
Boeing and IBM announced an alliance aimed at grabbing a share of a potential $200 billion in contracts on government communications systems that are part of a high-tech transformation of the military and intelligence agencies. The firms said they had identified eight Defense Department and four intelligence agency competitions they could potentially team up on, but declined to identify them.
The New York Stock Exchange dropped Martin Lipton as a legal adviser, one year after he was criticized for his role in approving a $187.5 million pay package for former NYSE head Dick Grasso. Larry W. Sonsini, chairman of the Palo Alto, Calif., law firm Wilson Sonsini Goodrich & Rosati, will replace Lipton as chairman of the exchange's 21-member legal advisory committee.
Delta Air Lines' pilots union has tentatively agreed to let the carrier bring pilots out of retirement in some cases to deal with staff shortages that could ground flights. The deal, which must be ratified by the 7,500 active Delta pilots, came after the company agreed not to terminate their pension plan before February even if it files for bankruptcy protection.
The U.S. Chamber of Commerce filed an emergency motion seeking a court order to block the Securities and Exchange Commission from requiring that 75 percent of mutual fund directors, including the chairman, be independent of the fund company. The motion, filed in the U.S. Court of Appeals for the D.C. Circuit, requested that the court issue an order by Oct. 18 that would stay the SEC rule pending resolution of a legal challenge to it by the business group. Failing that, the Chamber of Commerce asked for an expedited hearing on the matter.
Two Franklin Templeton Investments units will pay $5 million to settle a complaint alleging the firm allowed a hedge fund investor to make inappropriate mutual fund trades. Under terms of the consent order, Franklin Advisers and Franklin Templeton Alternative Strategies admitted to allowing market timing even though the fund's prospectus language prohibited such practices, the Massachusetts secretary of state said.
T-bill rates were mixed. The discount rate on three-month Treasury bills auctioned yesterday rose to 1.685 percent from 1.640 percent last week. Rates on six-month bills rose to 1.870 percent rate from 1.840 percent. The actual return to investors was 1.716 percent for three-month bills, with a $10,000 bill selling for $9,957.40, and 1.914 percent for a six-month bill selling for $9,905.46. Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, fell to 2.09 percent last week from 2.10 percent the previous week.
Adelphia Communications founder John J. Rigas and two of his sons want a bankruptcy judge to unfreeze an additional $11.8 million in family assets to pay lawyers defending them against claims they looted the company.
The Chicago Board of Trade received approval to settle a lawsuit over ownership of the exchange, paving the way for the futures market to become a for-profit company owned by shareholders. The agreement gives "minority" members a 22 percent stake, valued at about $330 million, in a for-profit exchange.
Enron will be paid $2.8 million by a Houston law firm to settle a lawsuit regarding legal fees paid by the company before its bankruptcy. Enron's committee of unsecured creditors sued the firm, Andrews & Kurth, to recover $5.4 million in fees. The firm advised Enron on transactions that allowed the company to shift debt off of its books, according to papers filed with the U.S. Bankruptcy Court.
Citigroup and the Association of Community Organizations for Reform Now announced a partnership to boost homeownership in low- and moderate-income neighborhoods. The effort includes providing a mortgage product through ACORN's housing offices, making more loans available to immigrants, offering financial education and increasing affordable housing.
Cisco Systems, the world's largest maker of computer-networking equipment, said profit in fiscal 2004 would have been $1.22 billion less than the $4.4 billion it reported if it had recorded costs for stock options granted to employees. Cisco opposes a Financial Accounting Standards Board proposal that would require companies to record costs for options and is backing a method that would cut the cost to companies by about 70 percent.
Nigeria said it was banning the local subsidiary of Halliburton Energy Services from government contracts, accusing it of negligence in the disappearance of oil-industry radioactive materials two years ago. Halliburton is accused of failing to cooperate with government efforts to have the radioactive materials returned to Nigeria, according to a statement by the Nigerian president's office. A Halliburton spokeswoman said in an e-mail that the company was working with the government.
Freddie Mac nominated Geoffrey T. Boisi, the former co-chief executive of J.P. Morgan Chase, to its board. Also nominated were Barbara T. Alexander, an independent consultant and former senior adviser to UBS Warburg; William Lewis, a managing director and co-chairman of Lazard Freres; and Eugene M. McQuade, Freddie Mac's chief operating officer, the company said in a statement. The shareholders of Freddie Mac, based in McLean, are set to vote on the nominees at the company's annual meeting on Nov. 4.
Perdue Farms was charged by the Equal Employment Opportunity Commission of discriminating against a group of Seventh-day Adventist workers because of their religion, according to a lawsuit filed on behalf of several employees.
Smithfield Foods' Packerland Packing has recalled about 59,000 pounds of ground beef shipped to retail stores in seven states, including Virginia, because some of it may carry a potentially deadly form of E. coli bacteria, the Agriculture Department said. The recalled meat includes 10-pound boxes and tubes of Imperial Beef Fine Ground 81/19 in cases that bear the code G18148FR; PPC'S Ground Beef, Fine Ground Sirloin 95/5 in cases coded G49548RO; and PPC'S Ground Beef, Coarse Ground Sirloin 95/5 coded G49540PP. All boxes have "Est. 562B" inside the USDA mark of inspection. The USDA Meat and Poultry Hotline is 888-674-6854.
Red Hat, which distributes Linux software, said second-quarter profit more than tripled, to $11.8 million, compared with $3.6 million in the same quarter a year earlier.
CarMax said second-quarter profit dropped 24 percent, to $29.9 million, compared with $39.6 million in the same quarter last year, partly because of severe weather in the Southeast and gas prices.
Nike said fiscal first-quarter profit rose 25 percent to $326.8 million, helped by its strongest U.S. orders in seven years. Worldwide sales also grew in the period ended Aug. 31.
Compiled from reports by the Associated Press, Bloomberg News, Dow Jones News Service and Washington Post staff writers.