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Business Briefs

Reported by Star-Bulletin staff & wire

Thursday, April 20, 2000

Microsoft exceeds profit expectations

REDMOND, Wash.-- Microsoft Corp., the world's largest software maker, said fiscal third-quarter profits rose 24 percent while revenues rose less than forecast.

Earnings rose to $2.39 billion, or 43 cents a share in the quarter ended March 31, from $1.92 billion, or 35 cents a share a year ago. Microsoft was expected to earn 41 cents a share according the average estimate of analysts who follow the company. Revenues rose to $5.66 billion, from $4.6 billion a year earlier. The latest revenues missed analysts' expectations of up to $5.95 billion. "Sales were a little better than expected on the retail side, but they were slow on the (business) side, said analyst Andrew Roskill of Warburg Dillion Read Inc.

30-year mortgages resume climbing

McLEAN, Va. -- The average interest rate on a 30-year home mortgage rose this week after falling last week to the lowest level since late December, Freddie Mac said.

The 30-year, fixed-rate mortgage rose to 8.16 percent this week from 8.12 percent last week, according to mortgage broker Freddie Mac. Last week's rate was the lowest since the week ended Dec. 31, when it was 8.06 percent.

The average rate on a one-year adjustable mortgage, meanwhile, fell to 6.76 percent this week from 6.86 percent last week. The average 15-year mortgage rate rose to 7.82 percent from 7.76 percent.

Mandarin Oriental buys hotel chain

Hong Kong-based luxury hotel operator Mandarin Oriental International Ltd. said today it has agreed to buy another operator of deluxe hotels, Rafael Group Ltd., based in the British Virgin Islands. Mandarin Oriental will pay $142 million cash and assume Rafael's $15 million of debt.

Aside from New York, where Rafael operates the Mark and where Mandarin Oriental is building a $200 million hotel, Rafael's six hotels don't conflict with Mandarin's 14, which include management and part ownership of the 370-room Kahala Mandarin Oriental on Oahu.