Google Inc. went so far as that 12 percent at the end of the hearing after the submission of reports, not the profit estimates of analysts to an increase in spending on new projects and the costs of defence YouTube copyright in a process.

The owner of the most popular on the Web search engine fell to 470.55 U.S. dollars, the lowest level in three months. The exclusion of costs such as interest on the basis of shares, the profit amounted to $ 4.63, the residue of $ 4.73 compared to the average of estimates collected by Bloomberg.

Spending on research increased by 65 percent, anger of investors to raise, because Google is increasing investment in the middle of a slowdown in the economy and concern that the demand for Internet advertising soften May. YouTube also with Viacom Inc. is on the cost and Web site video, loses money. Today, CEO Eric Schmidt said, was the first time that Google with more than a difficult economic environment “.”

“ It is easy to describe this as a no on the economic prospects’’said Colin Gillis, an analyst from Canaccord Adams Inc. in New York. “ This is an ugly little band tomorrow.”

Google in Mountain View, California, fell in the hours after the post-trading at $ 533.44 on the Nasdaq Stock Market. If the decline of the owners when the market opens tomorrow, would the largest fall since 2004, the first publicly traded companies.

It is only the third time that Google has no projections in 16 districts, as a public company. The net profit amounted to $ 1.25 billion or $ 3.92, from $ 925 million or $ 2.93, a year earlier, the company said today in a statement. Sales of revenue from partner sites, with 43 percent to 3.9 billion U.S. dollars. Google offers no predictions.

The clicks on ads, 19 percent of the slowdown in growth from 47 percent in the previous year.

Economic Challenges

“ We are very well in a downturn,”Schmidt, 53, said today in a telephone conference. “ Traffic and revenue have actually taken place, despite the uncertain economic conditions.”

Well, that Schmidt not to say Google has been violated by the economic downturn, including analysts at Stanford Group Co. ’s Clayton Moran said that it is the first time that the company recognized the difficulties of the economy.

The economists believe that on average the United States economic growth of 1.2 percent last quarter, compared with 3.8 percent a year ago and 1 percent compared to the previous quarter. The first time without employment claims rose last week to 366000 that the U.S. housing market, the credit supply and slow consumer spending had a negative impact on growth.

Some analysts’ forecasts for the profit of Google is not an effect of $ 3:24 billion purchase of DoubleClick Inc. Mars, said Jeff Lindsay, an analyst at Sanford C. Bernstein & Co. in New York.

Interest

The acquisition of Google in terms of reducing the cash flow, giving it less money for short-term investments to report interests. The revenue from interest and other sources are up to $ 58 million from $ 167 million in the previous quarter and $ 137 million a year earlier.

Viacom The process to improve Google in the field of general and administrative expenses by 49 percent to $ 475 million, said Lindsay. While Google refused to reveal how it has spent on court costs, the company has recognized that the costs have increased legal and could be difficult to predict.

Court costs in gusts, Schmidt told analysts on the conference call. “ Welcome to the economics of information.”

Google seeks to reduce spending, co-founder Sergey Brin said today in an interview. In addition to the recruitment of workers less, the company is analysing the possibilities for reducing the entrepreneur, “he says.

“ We have a much more sustainable on the attitude now”, he said. “ There were a number of things, here and there could be something unique in its kind in the quarter, which would have been a part of the cost for us.”He refused to draw up to the reasons for the cost General and administrative expenses increased .

Spending for ads

U.S. your spending on advertising to rise 2% this year, against an earlier forecast of 3.7 percent, with headquarters in New York, researchers worldwide Magna said in this month. Google, which more than half the turnover in the last year, in the race with Yahoo! Inc. and Microsoft Corp. for customers that the advertisers the most effective means to pay, the budget decrease.

Google site around 62 percent of United States web in May, about twice the market share of Yahoo and Redmond, Washington, founded by Microsoft combined, according to ComScore Inc. To advantage of higher prices Google, Yahoo CEO Jerry Yang suggested an offer to Google to sell ads to promote his business search engine, the prevention of Microsoft to buy, the whole or part of the in Sunnyvale, California-based company.

The partnership, during the examination by the Ministry of Justice and for the meetings this week by the legislature of the United States, May, the price of Yahoo search ads by 22 percent, said Roger Barnette, President SearchIgnite Inc., Atlanta Marketing research.