Profitability eludes Amazon again

NEWS Amazon.com is unlikely to record a profit for its first quarter when it reports its latest financial results tomorrow. The company's milestone $5m net profit for its fourth quarter, announced in January, was largely due to the seasonal boost over Christmas and improvements to its inventory management. Its own guidance is for an operating loss of between $16m and breakeven - although it is expected to reduce losses on last year's equivalent quarter. Revenues are expected to be between $775m and $825m. The company has not indicated when it is likely to achieve a sustained profit. Amazon's recently introduced policy of free shipping on orders over $100 is likely to have a positive impact, while Germany and the UK have been singled out by analysts as hotspots of activity for the quarter. For the third year running, the company's CEO Jeff Bezos didn't get a pay rise or bonus. His salary remains steady at $81,840.