The Buzz On Business

BofA REPORTS $9.1B LOSS

Things keep getting worse for Bank of America. Tuesday, the nation's largest bank reported a loss of$9.1 billion during the second quarter, partly because of an $8.5 billion settlement with investors. That agreement, reached in June, settled claims that the bank had sold the investors poor-quality mortgage bonds. The bank has announced several other settlements this year. The total so far to settle investor claims is $12.7 billion. The large settlements and protracted losses related to mortgage loans are causing investors to worry about something bigger: Bank of America's overall financial strength. In a conference call to discuss the earnings report, analysts grilled the bank's executives. At the top of their list of concerns was whether the bank will need to raise more money to comply with new international requirements that large banks hold more capital. If Bank of America needed to boost its capital reserves, it might look to raise more money by issuing more shares of its stock. That would dilute the value of stock owned by current shareholders.

J&J PROFIT DROPS 20%

Product recalls, flat U.S. sales and litigation and restructuring costs slashed Johnson & Johnson's second-quarter profit by 20 percent, and that's after a big currency exchange benefit boosted results.J&J executives said Tuesday that they're making progress on their manufacturing problems and have numerous new drugs, medical devices and toiletries hitting the market or coming soon. But J&J shares fell by 1.4 percent before recovering somewhat, a big drop for the health care giant, which makes everything from Band-Aids and Listerine to biologic medicines and surgical devices. J&J said its second-quarter profit fell nearly20 percent because of the one-time costs and higher spending on product launches, manufacturing improvements and research.

HARLEY SALES REV UP

For the first time since the recession, more Americans are buying Harleys. Harley-Davidson Inc.'s U.S. sales rose almost 8 percent, and its profit more than doubled in the second quarter, the first time since the end of 2006 that domestic sales have increased for the motorcycle maker. Consumers felt more confident and wanted to upgrade to new bikes. On top of that, the brand has the largest share of sales when it comes to new kinds of bikers, such as women, blacks and people younger than 35. The company is also expanding its market share overseas. Harley'sU.S. retail sales of new motorcycles grew 7.5 percent to 53,599 bikes, much faster than overseas, where sales rose 2.4 percent to 29,797. It boosted its shipment forecast for 2011, sending shares up more than 13 percent to a 52-week high shortly after Tuesday's opening bell.

COKE BUBBLES OVERSEAS

Coca-Cola Co.'s second-quarter profit rose 18 percent on strong growth overseas. The results beat expectations and the company's stock hit a 52-week high Tuesday. The world's largest beverage maker has shown consistent growth for years because of major gains in emerging markets such as Latin America, India and China, coupled with steady sales in established markets. Coca-Cola, based in Atlanta, is relying more on these regions as its business in established markets such as the United States and Europe continues to be crimped by economic woes.