Google profit short of fore­casts

Austin American-Statesman - - BUSINESS -

Google Inc.’s sec­ond-quar­ter profit rose 24 per­cent but missed an­a­lysts’ tar­get as higher ex­penses and the fall­out from the Euro­pean debt cri­sis dragged down the Web gi­ant.

The letdown an­nounced stemmed from Google’s ex­pand­ing pay­roll and a run-up in the U.S. dol­lar that has been driven by fears that the euro will crum­ble if gov­ern­ments in Greece, Spain, Por­tu­gal and Italy de­fault on their per­ilously high debts. The wor­ries hurt Google be­cause about a third of the com­pany’s rev­enue comes from Europe, and cus­tomer pay­ments made with the euro trans­lated into fewer dol­lars than a year ago.

Google is also spend­ing more to main­tain its com­mand­ing lead in In­ter­net search while it also tries to di­ver­sify by de­vel­op­ing prod­ucts in other promis­ing niches such as on­line video and mo­bile de­vices. To help achieve its goals, the com­pany added nearly 1,200 em­ploy­ees in the sec­ond quar­ter, end­ing June with more than 21,800 work­ers.

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