Search engine Google moves into profit

Internet search engine Google has joined the ranks of profitable dotcoms

Internet search engine Google has joined the ranks of profitable dotcoms. The announcement coincides with Mr Eric Schmidt's appointment as the company's new chief executive.

Mr Schmidt says Google earned a net profit in the second quarter. In the past, the privately owned company has said little about its financial performance - prompting speculation that it might be doing badly.

But the new chief executive has told reporters that Google is "quite profitable".

Mr Schmidt, a former chief executive at software firm Novell, replaces Mr Larry Page, who co-founded Google with Mr Sergey Brin in 1998.

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Mr Page remains as president of Google's products section, while Mr Brin becomes president of technology.

Mr Page says: "Eric is exactly the right leader for Google. His extensive technology background and vision for the potential of the internet complement the efforts that Google is making in defining a leadership position in internet search and navigation."

Mr Schmidt has paid tribute to Mr Page and Mr Brin, saying their combined efforts had vastly enhanced internet use and made it easier for people to find information online.

He added: "Under Larry's and Sergey's leadership, Google has continued to set the pace for search and navigation on the internet with the ongoing addition of new features and capabilities and by consistently delivering the best search experience on the internet to users all over the globe."

PA