Federated Department Stores Inc. (FD: chart) said Wednesday that net income for the second quarter that ended July 30 advanced to $148 million, or 84 cents per share, versus $78 million, or 43 cents per share, last year when the company took a $59 million charge, or 20 cents a share, to buy back $274 million of long-term debt.

The second-quarter 2005 financial results met analysts' expectations.

Sales of $3.62 billion climbed 1.2% vs. sales of $3.58 billion a year earlier. Sales at stores opened at least a year, gained 1.1%.

Federated sees same-store sales to increase about 3% in each of 3Q and 4Q. Sales growth is also projected to pick up as the company continues to make changes targeted to improve product assortments, pricing, the shopping experience and marketing.

The upbeat earnings report fueled Federated stock up 3.3%, or $2.39 per share, to $75.15 in midday trading on the NYSE.

The company doesn't plan to issue outlook on its 3Q or 4Q earnings until after its acquisition of May Department Stores Co. is complete, which is to happen in 3Q.

For the first half of the year, Federated earned $271 million, or $1.56 per share, vs. $175 million, or 96 cents per share, a year earlier.

Sales totaled $7.26 billion, vs. $7.13 billion last year.

Lazard Inc. (LAZ: chart), an investment bank specializing in mergers-and-acquisitions advising and asset management, on Wednesday announced that its second-quarter earnings climbed nearly 30% on surging deal activity. The 157-year old banking partnership that went public in May added that mergers-and-acquisition revenues at the company climbed 35% for the quarter.

Lazard Ltd. a 157-year old banking partnership that went public in May, reported that proforma net income grew to $32.02 million, or 32 cents a share, in the three-month period ended June 30, versus $24.74 million, or 25 cents, in the year-ago quarter.

Analysts expected Lazard to earn 33 cents a share.

Total revenue increased to $336.4 million vs. $286.43 million a year earlier. Operating revenue jumped to $330.13 million versus $282.06 million.

Net income according to generally accepted accounting principles was $27.59 million, down versus $79.36 million.

Mergers-and-acquisition revenues increased 35% to $182 million in the quarter.

Proforma figures for Lazard provide a more exact idea of the company's performance because the accounting rules used to calculate earnings on a GAAP basis for 2Q, when the company was public, are different from rules used when it was a partnership.

Lazard shares ended Tuesday at $23.60 on the NYSE, down 5.6% from their IPO price of $25.

American International Group Inc.'s (AIG: chart) second-quarter profit jumped 51% as strong results in the insurer's overseas units and soaring capital gains offset decreasing business volume in some U.S. operations due to accounting probes by state and federal authorities.

AIG posted net income of $3.99 billion, or $1.53 a share, versus $2.65 billion, or $1.01 a share last year, as revenue jumped 14% to $26.86 billion.

In 4 p.m. composite trading on the NYSE Tuesday, AIG stock was up 42 cents to $61.42. In after-hours trading, AIG climbed another 2.4% to $62.90.

AIG's latest results, which come after a 44% growth in 1Q net income, were bolstered by hefty realized capital gains in the insurer’s large investment portfolio and unrealized gains from financial derivatives used to hedge risk.

The results included a $333 million charge reflecting a restatement to the books of International Lease Finance Corp., AIG's airplane-leasing business.