GE Capital finishes purchase of Safeco unit
Terms of the purchase of Redmond-based Safeco Credit, which makes equipment loans to restaurant franchises and manufacturing, transportation and construction companies, weren't disclosed. The acquisition was announced July 24.
Safeco had said earlier that the sale would cut the Seattle insurer's debt in half, reducing it about $1.5 billion.
Safeco has been struggling since the 1997 acquisition of American States Insurance Group left it with expenses that outstripped revenue.
Hewlett-Packard profit plummets 89 percent
SAN JOSE — Third-quarter profits fell 89 percent at Hewlett-Packard (HP) because of weak technology spending worldwide, but the results posted by the computer and printer giant yesterday beat Wall Street's dramatically reduced expectations.
In the three-month period ending July 31, HP had net earnings of $111 million, or 6 cents a share, compared with profits of $1.05 billion, or 51 cents a share in the comparable period of 2000.
Revenue fell 14 percent, to $10.1 billion from $11.8 billion last year. HP had warned of such a shortfall on July 26, when it also announced layoffs of 6,000 people, about 6 percent of its work force.
"It's clear the economic downturn has spread to every major geography," said HP's chairwoman and chief executive, Carly Fiorina. She added that she doesn't "see any signs of improvement in the market before 2002."
Rate keeps falling on 30-year mortgage
WASHINGTON — The average rate on a 30-year mortgage fell this week to the lowest in almost five months, Freddie Mac reported.
The 6.92 percent interest rate on a 30-year, fixed-rate mortgage follows an average 7 percent the previous week, said Freddie Mac, the No. 2 buyer of mortgages. The new rate is the lowest since the week ended March 30, when it was 6.91 percent.
The average rate on a 15-year mortgage, a popular refinancing option, fell to 6.48 percent from 6.54 percent. That was also the lowest since March 30.
The average rate on a one-year adjustable mortgage rose to 5.71 percent from 5.70 percent.
Price war ravages Dell Computer profit
NEW YORK — Dell Computer yesterday reported a second-quarter profit that was sharply lower than its year-ago results, as the top personal-computer maker continued to lead the industry into a price war.
The Round Rock, Texas-based company posted a second-quarter profit of $433 million, or 16 cents per share, on track with analysts' estimates. This compared with net income of $603 million, or 22 cents per share a year ago.
Dell said its sales were $7.61 billion, roughly flat with the same period a year ago, and missing analysts' hopes for sales of $7.71 billion.
$4.9 million sale sets new eBay record
SAN JOSE — eBay, the largest Internet auctioneer, said a Gulfstream II business jet sold for $4.9 million, the highest price paid for any item on the company's online auction sites.
The 12-seat aircraft was one of several being offered by Texas-based Tyler Jet on eBay's aviation site, eBay spokesman Kevin Pursglove said. A charter-aircraft company based in Africa bought the jet. The General Dynamics jet sold for about three times' eBay's previous record, the $1.65 million paid for a Honus Wagner baseball card, Pursglove said.
Seattle Times news services contributed to this report.