Google reports 35% rise in net profit

• Google Inc reported a weaker-than-expected 35 per cent rise in net profit as the company blamed lower returns from managing its huge cash pile rather than softening sales of online advertising.
• Shares of the company tumbled 8 per cent to below $500, as Wall Street has come to count on Google to deliver revenue and earnings surprises over and above expectations each quarter.
• The disappointing profit came as Google said second-quarter online ad revenue held up well across sectors and world regions despite a weaker global economy that has tripped up rivals. Officials pointed to problems managing its cash - now totaling $12.7 billion - in the face of volatile interest rates, the cash drain of recent acquisitions and higher costs to hedge foreign currency risk as operations expand overseas. Google shares fell as much as 10 per cent from a Nasdaq close of $533.44.