Amazon.com 3Q earnings up 48%

SEATTLE Amazon.com has announced that net sales increased 31% to $4.26 billion in the third quarter, compared with $3.26 billion in third quarter 2007. Excluding the $80 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 28% compared with third quarter 2007.

Net income increased 48% to $118 million in the third quarter, or 27 cents per diluted share, compared with net income of $80 million, or 19 cents per diluted share, in third quarter 2007. Net income includes a benefit of $15 million related to net foreign currency remeasurements.

“We remain relentlessly focused on delivering value to customers through lower prices, improved selection and our free shipping offers, including Amazon Prime,” said Jeff Bezos, founder and ceo of Amazon.com. “Customers saved more than $700 million with our global free-shipping programs over the past twelve months, and we expect more customers than ever will take advantage of the benefits of Amazon Prime this holiday season.”

Amazon.com said that for the fourth quarter 2008 it expects net sales to be between $6 billion and $7 billion, or to grow between 6% and 23% compared with fourth quarter 2007. For the full year, net sales are expected to be between $18.46 billion and $19.46 billion, or to grow between 24% and 31% compared with 2007.