In short

More business news in brief.

Long-established Louth vehicle body builder in liquidation

One of the oldest businesses in Co Louth, Murphy Body Builders, which manufactured vehicle bodies and equipment, has been placed in liquidation, with the loss of 17 jobs. The Dundalk-based business dated back to 1915.

Dublin accountant Jim Stafford of Friel Stafford was appointed liquidator to James Murphy Sons Sales (Dundalk) by the High Court on Monday on the back of a petition by a creditor, who is owed €141,600.

US jobless rate climbs to 5.7%

The US unemployment rate hit its highest level in four years during July as employers cut non-farm jobs for a seventh straight month, though less severely than predicted, a Labour Department report said.

The jobless rate climbed to 5.7 per cent from 5.5 per cent in June as 51,000 jobs were eliminated in July, bringing losses for the year to 463,000.

The department trimmed its estimates for job losses in each of May and June. It said 47,000 jobs were cut in May instead of 62,000 and 51,000 in June rather than 62,000 - a total of 26,000 fewer jobs lost in the two months than previously thought. - (Reuters)

Exxon breaks own profit record

Exxon Mobil broke its own record for the highest-ever quarterly profit for a US company, joining other major oil companies yesterday in posting stronger earnings on the back of sky-high oil prices.

The average price of a barrel of oil was slightly less than $125 in the quarter, nearly double last year.

Exxon's second-quarter net income rose 14 per cent to $11.68 billion, or $2.22 a share, in the quarter.

- (Reuters)

Citigroup faces inquiry

Citigroup said yesterday the US Securities and Exchange Commission has opened a formal probe into possible violations of federal securities laws in connection with the sale of auction-rate securities.

The bank also said it is responding to subpoenas from state agencies, including in Massachusetts, New York and Texas, concerning the securities.

Separately, the bank said it is co-operating with government and regulatory requests regarding bank-managed hedge funds. - (Reuters)

Bank's profit almost wiped out

British bank Alliance Leicester (AL), which is being taken over by Spain's Santander, said first-half profits were almost wiped out due to a £209 million (€265.3 million) hit to the value of risky assets and higher funding costs.

AL yesterday said it made a pre-tax profit for the six months to the end of June of £2 million, down from £290 million a year before.

AL last month agreed to a £1.3 billion takeover by Santander and said it expects the deal to be completed in or about October.