Google earnings jump 18%, but fall short of projections

Google’s first-quarter earnings came in below analyst projections as the Internet search leader sped up hiring and increased spending.

The results released Thursday may heighten investor fears that Google’s earnings might suffer because of the company’s commitment to hire at least 6,200 workers this year, the most in Google’s 13-year history.

Google co-founder Larry Page, who replaced Eric Schmidt as CEO after the quarter ended, has indicated he plans to keep investing in long-term opportunities that may take years to pay off, even if that crimps the company’s short-term results.

The company earned $2.3 billion, or $7.04 per share, in the period ending in March. That was an 18 percent increase from nearly $2 billion, or $6.06 per share, last year. 

Best Buy thinking smaller, plans to open mobile stores

Best Buy plans to open hundreds of smaller mobile stores and expand online and in China in an effort to be more competitive as consumers increasingly shop online.

The largest U.S. electronics retailer plans to shrink square footage at big-box stores by 10 percent over the next three to five years, a move that Best Buy said will eventually save it $70 million to $80 million annually.

Meanwhile, it plans to have 200 Best Buy Mobile stand-alone stores open in the U.S. by July 4, and 600 to 800 within five years, executives said at an analyst conference.

Best Buy’s net income fell 16 percent during the most recent quarter, which included the crucial holiday season, while revenue dropped 2 percent to $16.26 billion.

Ford expands F-150 recall because of air bag defect

Under pressure from government safety regulators, Ford Motor Co. is expanding a recall of the popular F-150 pickup truck to include nearly 1.2 million vehicles that may have defective air bags.

The wider recall, announced Thursday by the National Highway Traffic Safety Administration, covers all F-150s built for the 2004 and 2005 model years, as well as part of the 2006 model year. Also included are 16,000 2006 Lincoln LT pickups.

An electrical short can cause the air bags to deploy unexpectedly, in some cases injuring drivers.

In February, Ford agreed to fix 150,000 F-150s, but resisted the government’s wishes to recall nearly 1.2 million trucks that may have the problem.

New CEO of Chevron Corp. earned $14 million last year

Chevron Corp.’s top executive was paid $14 million last year, according to an Associated Press analysis.

The increase in compensation for John Watson, who was promoted to CEO and chairman of the board last year, came mostly from a 150 percent jump in a performance-based cash bonus to $3 million, and from stock options worth $5.5 million, up from $2.6 million in 2009. Watson also received a 56 percent salary increase to $1.47 million and a 57 percent increase in stock awards worth $3.8 million, according to an SEC filing.

The compensation is below that of Watson’s predecessor, David J. O’Reilly, who was paid $15.2 million in 2009. It’s also less than the $21.5 million that Exxon Mobil Corp. CEO Rex Tillerson made in 2010.

Ex-UNICEF chief joins Nestle amid milk substitute debate

Former UNICEF head Ann Veneman joined the board of Swiss food and drinks company Nestle SA on Thursday despite pleas from nutrition advocates who oppose Nestle’s marketing of breast milk substitutes.

Veneman headed the United Nations children’s agency from 2005-2010 and before that was U.S. agriculture secretary.

As a board member, she told AP late Thursday that she would be examining whether Nestle is fully complying with a voluntary breast milk code adopted by the general assembly of the World Health Organization. The 1981 code says companies should not market infant formula and other breast milk substitutes as superior to breast milk, nor should their labeling ignore the added costs and health hazards of using substitutes.