Microsoft profit rises, outlook disappoints
Seattle: Microsoft has registered a 16 percent rise in Q1 profits below Wall Street expectations due to increased costs on products from Windows to the new Xbox 360 game console. Microsoft posted a net profit of $2.98 billion in its fiscal third quarter ended March 31, compared to $2.56 billion a year earlier. Revenue rose 13 percent to $10.9 billion.

The company's shares fell 6 percent in post trading hours after Microsoft said its earnings would be hurt by increased investments in its software services business, accelerated Xbox 360 game console shipments and higher costs ahead of crucial new product releases.

Microsoft also warned personal computer and server computer sales growth would slow in the fiscal year starting July 1.
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Hyundai chief faces arrest
The chairman of Korea's biggest carmaker Hyundai Motor Co is facing arrest over charges of embezzlement. Chung Mong-koo, who heads the Hyundai motor group, is suspected of embezzling about 100bn won (£60m) of his company's money to operate a slush fund to seek favours from politicians and officials via two lobbyists. The lobbyists were arrested on suspicion of receiving money from Hyundai in exchange for promising to help it win construction permits and business favours for struggling affiliates. It is not yet clear, however, if any of the money went to politicians.

Chung and his son's public apology and promise of donating 1 trillion won in personal assets to charity has not succeeded in appeasing the authorities. Three years ago, Chung's younger brother, Chung Monghun, committed suicide by jumping from the 12th floor of Hyundai's headquarters in Seoul after being implicated in a scandal involving secret cash payments to North Korea in return for the historic 2000 summit meeting.

A Hyundai spokesman, Jake Chang, said the allegations had shaken the firm to its core. The case is not the first time South Korea's family-run industrial conglomerates have been accused of attempting to buy political influence. In 1996 several influential business leaders, including the chairman of the Samsung electronics firm, were convicted of contributing millions of dollars to a slush fund belonging to the former South Korean president, Roh Tae-woo, who was later jailed for corruption. Roh said he had used the fund, worth about £300m, to "help carry out state policies smoothly". He was released in 1998.

A local court is expected to decide today whether to issue an arrest warrant for Mr Chung, the eldest son of Chung Juyung, who started Hyundai in 1947.
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Exxon Mobil earnings rise 7 per cent
Houston: Exxon Mobil Corp, the world''s largest oil company, has registered its biggest-ever first-quarterly profit of $8.4 bn a 7 per cent jump from the $7.86 bn profits in the year ago corresponding period. Record-high crude prices brought in sales of $89 billion, nearly a billion dollars a day for the year's first quarter driven by strong global energy demand and soaring prices, as gasoline prices crossed past $3 a gallon.

But Exxon''s first-quarter earnings at $1.37 a share compared with $1.22 a year ago, fell short of the $1.47 a share that analysts expected.
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