IN BRIEF (Page 16)

Wal-Mart profit

Wal-Mart Stores Inc, the world's largest retailer, posted a higher first-quarter profit and forecast second-quarter earnings that may trail analysts' estimates as consumers strained by $3.70-a-gallon gasoline cut spending.

Net income increased 6.9 percent to $3.02 billion, or 76 cents a share, from $2.83 billion, or 68 cents, a year earlier, the Bentonville, Arkansas-based company said yesterday in a statement. Profit beat estimates by 1 cent.

VW's plant plans

Volkswagen AG, Europe's largest carmaker, said yesterday that it will outline plans for a production facility in the US in July.

Sites in the states of Alabama, Tennessee and Michigan have been named in the running for the new plant, the company said, confirming a report in the German business daily Handelsblatt. But Volkswagen wouldn't yet say where the facility will be.

US retail sales fall

Retail sales in the United States fell in April, led by a slump in auto purchases that masked stronger-than-forecast gains elsewhere, indicating rising energy bills and a faltering labor market haven't stopped Americans from shopping.

Purchases dropped 0.2 percent last month after a 0.2 percent increase in March, the Commerce Department said.

Revenue drops

Toll Brothers Inc, the largest US luxury homebuilder, reported its eighth consecutive quarterly decline in revenue as demand for new homes tumbled.

Homebuilding revenue fell to $818 million in the fiscal second quarter from $1.17 billion a year earlier, the Horsham, Pennsylvania-based company said yesterday in a statement.

UK inflation jumps

Britain's inflation rate jumped the most since 2002 in April, making it harder for the Bank of England to support economic growth by cutting interest rates.

Consumer prices climbed 3 percent from a year earlier, compared with 2.5 percent in March, the Office for National Statistics said yesterday in London.

AIG 'in crisis'

Maurice R. Greenberg, the former chief executive and largest individual shareholder of AIG, says the insurer is "in crisis" and urged it to postpone its annual meeting in the wake of its massive first-quarter loss, according to a regulatory filing .

In a letter to American International Group Inc's board dated Sunday, Greenberg said he and other top shareholders are deeply concerned "about the persistent and seemingly endless destruction of value at AIG".

Tiscali receives offers

Tiscali SpA, the Italian Internet company that is for sale, has received acquisition offers and its board has asked Chief Executive Officer Mario Rosso to review the bids.

Tiscali also said its first-quarter net loss narrowed to 37.5 million euros from 42.5 million euros a year earlier, according to the Cagliari, Italy-based company.

Bank bought

Westpac Banking Corp agreed to buy St. George Bank Ltd for A$18.5 billion ($17.5 billion) to create Australia's second-biggest bank and largest provider of home loans.

St. George will recommend shareholders accept the offer of 1.31 Westpac shares for each of its shares, the Sydney-based banks said yesterday.

Hermes slumps

Hermes International SCA, the French maker of Birkin handbags, slid from a 12-month high in Paris trading as speculation that the company may be bought dissipated.

Hermes fell 10.56 euros, or 10 percent, to 95.23 euros at 11:57 am in Paris, where the company is based, and earlier slid as much as 12 percent, the most since the company's 1993 initial public offering.

Agencies

(China Daily 05/14/2008 page16)