EARNINGS

Time Warner To Restate Results Back to 2000

Time Warner Inc. said yesterday that it is restating $584 million in online advertising revenue in part because its AOL unit was accepting advertising business from parties who were at the same time selling goods or services to, or getting investments from, Time Warner.

Another accounting issue disclosed in a filing with the Securities and Exchange Commission involved Time Warner’s cable unit, which entered into cable programming affiliation agreements with three other parties at the same time it committed to deliver network and online advertising services to them. The restatement came at the recommendation of an independent examiner appointed as part of Time Warner’s settlement with the SEC announced last year, the filing said.

— Dow Jones Newswires

Gap 2Q Profit Falls, Lowers Year View

Gap Inc. reported yesterday that second-quarter profit dropped by more than 50% because of sluggish sales and “aggressive” discounting and dramatically cut its forecast for the year.

Gap, which operates Old Navy, Gap, and Banana Republic, said that it is reducing its annual earnings outlook based on the “disappointing” quarterly results and sales for the month-to-date. The news, announced after the regular markets closed, disappointed investors, who were hoping to see signs of a turnaround from changes in fashions and a major marketing campaign.

— Associated Press

Nordstrom 2Q Earnings up 20%

Upscale department-store operator Nordstrom Inc. yesterday reported a 20% jump in second-quarter profits, driven by higher sales, expense reductions and a one-time gain.

After the close of trading, Nordstrom said it earned $178.8 million, or 67 cents a share, in its second quarter — up from $148.9 million, or 53 cents a share, in the year-ago period. Total sales rose 7.8% to $2.3 billion while sales at stores open longer than a year, an important industry benchmark, were higher by 5.7%.

— Dow Jones Newswires