Sales surge, profits decline as Amazon.com funds growth in Q1

First quarter sales at Amazon.com surged 34% to $13.2 billion during the first quarter ended March 31, but profits declined 35% to $130 million due to rising expenses related to growth initiatives. The company said first quarter net income of $130 million, or 28 cents a share was well below the prior year’s first quarter net income of $201 million or 44 cents a share. Operating income also declined considerably, dropping to $192 million in the first quarter compared with $322 million in first quarter 2011. Even so, the company’s shares surged in aftermarket trading on Thursday as the