Financing continues to boost GM earnings

General Motors posted earnings Wednesday that beat Wall Street estimates but continued to show its lending business is more profitable than its auto business.

The company reported net income of $425 million, or 79 cents a share in the third quarter, reversing a net loss of $804 million, or $1.42 a share, a year earlier.

The company’s financing unit, which provides loans for autos and homes, was the biggest earner in the company, GM chairman and CEO Rick Wagoner, above, said. The financing arm has earned nearly three-times the profit of the company’s auto business during the first three quarters of the year.

Telecommunications

SBC wins OK to expand services in four states

SBC Communications Inc. on Wednesday won permission from federal regulators to offer long-distance voice and data services in four states, giving the carrier the ability to offer the services in its entire home region.

The Federal Communications Commission approved the No. 2 U.S. local telephone carrier’s application to offer lucrative long-distance services in Illinois, Indiana, Ohio and Wisconsin after proving that its local networks there were open to competition.

Retail

J.C. Penney considering sale of drug store chain

J.C. Penney Co. confirmed Wednesday that it had hired Credit Suisse First Boston to advise it on the possible sale of the struggling Eckerd drug store chain.

Penney and Credit Suisse had declined to comment earlier this week on reports that the investment bank had been hired to gauge interest among possible Eckerd buyers.

In a statement Wednesday, the Plano, Texas-based retailer noted it had said publicly during the past two years it would review its strategic alternatives, “including options related to Eckerd.”

Entertainment

K.C. casino business takes drop in September

Gambling revenues for Kansas City, Mo., casinos dropped for the third time in four months, according to the latest figures from the Missouri Gaming Commission.

September’s combined revenues of $49.19 million at Kansas City’s four casinos were off 1.3 percent from September last year.

Ted Bogich, general manager of market leader Harrah’s North Kansas City Casino & Hotel, thinks a rebound still lies ahead.

New amenities and attractions at the casinos historically have increased the market, said Bogich, and a new, $105 million Argosy Riverside Casino is expected to open in December.