BlackBerry sales trounce estimates

SAN JOSE, CA - SEPTEMBER 25: Research in Motion (RIM) CEO Thorsten Heins speaks during the BlackBerry Jam 2012 conference at the San Jose Convention Center on September 25, 2012 in San Jose, California. RIM CEO Thorsten Heins kicked off the three-day BlackBerry Jam 2012 conference with a look at the new BlackBerry 10 opereating system. The conference runs through September 27. (Photo by Justin Sullivan/Getty Images) less SAN JOSE, CA - SEPTEMBER 25: Research in Motion (RIM) CEO Thorsten Heins speaks during the BlackBerry Jam 2012 conference at the San Jose Convention Center on September 25, 2012 in San Jose, California. RIM ... more Photo: Justin Sullivan, Getty Images Photo: Justin Sullivan, Getty Images Image 1 of / 1 Caption Close BlackBerry sales trounce estimates 1 / 1 Back to Gallery

SMARTPHONES

BlackBerry sales trounce estimates

Research In Motion Ltd.'s sales of the BlackBerry smartphone trounced estimates last quarter as it gained ground in emerging markets, signaling that the company may still have a future in the age of the iPhone.

RIM shares rose the most in almost a year after the company sold 7.4 million smartphones, about 500,000 more than analysts had projected. RIM also posted a narrower loss for the period than estimated and increased its cash holdings.

The results show that RIM can gain customers in lower-income markets such as Asia and Africa, even as it struggles to compete in the United States with Apple Inc.'s iPhone and devices running Google Inc.'s Android software. The challenge now is a successful release of the BlackBerry 10 phone, the linchpin of the company's comeback strategy.

CONSUMERS

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Spending rises only slightly

Consumer spending barely rose in August after the surge in gasoline prices squeezed Americans' paychecks, showing the biggest part of the economy is struggling to contribute to the economic recovery.

Purchases rose 0.1 percent after adjusting for inflation, following a 0.4 percent gain in July, according to data from the Commerce Department issued Friday. Other reports showed business activity unexpectedly contracted in September, while consumer sentiment improved.

Households may find it difficult to boost spending as slack employment generates income gains that scarcely cover rising food and fuel bills. At the same time, a real estate market that shows signs of stabilizing and higher stock prices are giving Americans reason to be less pessimistic about the future, which may prevent demand from deteriorating further.

RESTRUCTURING

Kodak cutting200 more jobs

Eastman Kodak Co., the bankrupt photography pioneer, plans to cut at least 200 more jobs as it prepares to stop selling consumer inkjet printers next year, part of a plan to turn into a commercial-printing company.

Kodak will continue to sell ink supplies to printer customers, it said Friday. The job cuts come in addition to 3,700 announced earlier this year, saving the company a total of $340 million annually. Kodak also is seeking to extend its exclusive right to negotiate restructuring during bankruptcy - a right that's due for review next month.

Chief Executive Officer Antonio Perez has been selling businesses to help fund a turnaround after seeking Chapter 11 protection in January. The company, which aims to exit bankruptcy in the first half of 2013, said this month it's "making progress" in a restructuring that includes selling its consumer-film, photo-kiosk and commercial-scanner businesses and an extended effort to auction its digital-imaging patents.

INVESTORS

BofA settlementfor $2.43 billion

Bank of America Corp. agreed to a $2.43 billion settlement with investors who suffered losses during its acquisition of Merrill Lynch & Co., resolving one of the biggest legal battles to stem from the takeover.

The bank will incur a $1.6 billion litigation expense in the third quarter, the company said Friday. The firm may post a loss for the period after estimating that legal costs, valuation adjustments and tax charges will reduce earnings per share by about 28 cents.

Bank of America has faced regulatory probes, investor lawsuits and criticism from lawmakers after buying Merrill in January 2009 for $18.5 billion without warning shareholders about spiraling losses at the brokerage before they voted to approve the deal. Under the settlement, Bank of America promised to overhaul corporate-governance policies.