The Earnings Train Chugs On
Some feared that higher energy prices and interest rates would take their toll. But the early results indicate that Corporate America's profits machine chugged on. For the second quarter, earnings at the 86 companies in BUSINESS WEEK's flash report on profits were up 16% on a 14% revenue gain. Tech companies led the way with a 96% earnings gain--though glossed by investment profits in some cases. Industrials were up 8% as strong gains at Tyco International (+370%) offset lackluster earnings at Ford Motor (-26%) and General Motors (+1%). The service sector was hurt by Chase Manhattan (-22%).
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