Oracle's earnings soar 27% in quarter on sales growth

Net income in the quarter ended May 31 rose to $2.04 billion, or 39 cents a share, from $1.6 billion, or 31 cents, a year earlier, Redwood City, Calif.-based Oracle said. Still, the company's first-quarter forecast signaled that growth might ebb, sending the shares down 3.4% in extended trading.

International sales and rebounding U.S. orders helped Oracle withstand a slowing economy last quarter. Chief Executive Larry Ellison also has spent more than $33.5 billion on acquisitions, adding business applications to its database software.

Excluding acquisition costs and some other expenses, profit rose to 47 cents a share last quarter, topping the average analyst estimate of 44 cents.

Sales climbed 24% to $7.24 billion. Including acquired companies, sales advanced to $7.28 billion in the quarter. That compares with a $6.88-billion average estimate.

For the current quarter, Oracle forecasts profit, excluding some items, of 26 cents to 27 cents a share. Revenue is expected to advance 18% to 20%, indicating sales of $5.42 billion to $5.51 billion. Analysts had estimated a profit of 27 cents a share on $5.37 billion in sales.

Oracle shares fell 76 cents to $21.79 in extended trading after closing at $22.55, up 32 cents.

General Mills profit drops 17%

General Mills Inc. said accelerating costs for ingredients and fuel may spur additional price increases after it started charging more for cereal and soup in the last few weeks.

The Minneapolis company projected that commodity and energy expenses would rise by $500 million in the year through May 2009, after increasing $345 million last year. The maker of Green Giant frozen vegetables has raised prices of Yoplait yogurt, snacks and other products this year as costs for corn, cocoa and truck fuel have climbed.

Net income in its fiscal fourth quarter ended May 31 fell 17% to $185.2 million, or 53 cents a share, from $224.1 million, or 62 cents, a year earlier, after gains from commodities hedging declined. Profit excluding trading rose to 73 cents, matching the estimate the company gave June 18.

Revenue climbed 13% to $3.47 billion, General Mills said.

Earnings for the 12 months ending May 2009 will rise to $3.78 to $3.83 a share from $3.52, the company reaffirmed.