Business News - part 40
Drugstore Giant Walgreens Buys Stake in Pharma Leader AmerisourceBergen For Access to Specialty Drugs
BUSINESS March 22, 2013 | 2:55 PM
- Walgreens pays $28 billion for stake in AmerisourceBergen to gain better distribution, access to drugs
- Deal expected to generate $28 billion in revenue in 2014
- Walgreens reported second quarter net income worth $756 million, up from $683 million a year ago
Walgreens Co., the largest drugstore chain in the US, and its partner Alliance Boots GmbH have signed a deal with AmerisourceBergen, one of the world's largest pharmaceutical services companies, allowing Walgreens greater drug distribution and access to pricier prescription drugs.
In the 10-year contract, Walgreens and Alliance Boots have the right to buy up to 23% of AmerisourceBergen, starting with 7% on the open market. The initial stake is worth $800 million.Read more »
BUSINESS March 21, 2013 | 12:25 PM
- Washington Post readers to pay to access over 20 online articles or multimedia products/month; print subscribers and selected users exempt
- Washington Post to release a new iPad app to attract more online subscribers
- Digital advertising makes up 20% of newspaper's total advertising revenue
Daily US newspaper The Washington Post will begin charging frequent users to read its content online, starting this summer.
Referred to what is known as a paywall, anyone who views over 20 articles or multimedia products within one month will be required to pay a fee; however, the newspaper has not yet indicated what the fee for frequent users will be.Read more »
BUSINESS March 20, 2013 | 2:12 PM
- Airbus to build 234 A320 medium-haul jets for Lion Air
- Deal makes Lion Air airline world top-five A320 operator
- Air travel in Indonesia expected to grow 6.4% per year through 2031
European aerospace giant Airbus SAS signed a contract with Indonesia's largest privately run airline Lion Air to provide 234 A320 medium-haul jets worth $24 billion. The purchase is the largest in Airbus’s history, giving the company inroads into the fast-growing Asian market dominated by rival Boeing.
The order, announced at a ceremony in Paris by high-level executives of Airbus and Lion Air, includes 109 A320neos, 65 A321neos and 60 current-generation A320s. Each jet retails for $91.5 million.Read more »
BUSINESS March 19, 2013 | 11:44 AM
- China’s ENN Group to build 50 public LNG stations before end 2013; targeting network of 500 stations across US
- 50% of garbage trucks sold last year across US powered by natural gas
- 28 public LNG refueling points exist today in US
ENN Group Co, one of China's largest privately owned energy companies is moving forward with plans to create a network of liquefied natural gas (LNG) refueling stations for trucks along highways in the United States.
ENN Group, a clean energy company, intends to set up 50 stations before the end of the year.Read more »
BUSINESS March 18, 2013 | 3:42 PM
- ENI sells 20% stake in gas rich Mozambique field to China’s largest state-owned oil producer PetroChina
- Chinese government promoting gas exploration to reduce nation’s reliance on coal and energy imports
- China's state-owned energy companies spent $7 billion on acquisitions already in 2013
Italian oil producer ENI has sold a 20% stake in Mozambique’s Area 4 gas field to China National Petroleum Corp unit PetroChina Ltd., China’s largest state-owned oil producer, for $4.2 billion.
ENI will retain a 50% stake in Area 4, with three other companies each maintaining a 10% stake.Read more »
BUSINESS March 15, 2013 | 3:53 PM
- US retail sales up 1.1% in February, more than double analyst expectations
- Sales related to home, car, building and garden supplies see biggest increase
- Discretionary purchases continue to lag; restaurant and drinking-establishment sales drop 0.7%
According to the US Census Bureau, February retail sales in the US reached over $421 billion, marking an increase of 1.1% since January and nearly 5% above numbers from the same time last year.
This news more than doubled the anticipated 0.5% estimate from cautious market analysts.Read more »
BUSINESS March 14, 2013 | 4:03 PM
- Cathay sees largest drop in profit since 2003 due to high fuel prices, increased competition and weak demand; Cathay air cargo business revenue down 5.5%
- Cathay has 84 aircraft on order for delivery before 2020
- IATA forecasts airline industry profit will rise in 2013
Hong Kong-based airline Cathay Pacific reports profit fell 83% in 2012 to $118 million due to a number of economic factors, marking Cathay’s largest drop in profit since 2003.
Christopher Pratt, chairman of Cathay Pacific, says the airline’s drop in profit can be attributed to high fuel costs, increased competition in Asia-Pacific, a decline in consumer and corporate travel, and weak cargo demand.Read more »
BUSINESS March 13, 2013 | 4:10 PM
- Time Inc. to be spun off as separate publicly held company by year end
- Time Warner, Meredith Corp deal unsuccessful
- Time Inc. revenue down from $5.4 billion to $3.4 billion in past decade
Media conglomerate Time Warner is offloading Time Inc., its nine-decade-old, US-leading magazine unit that publishes Sports Illustrated, Fortune, Time, People and many other popular magazines.
Time Inc. will be spun off as a separate publicly held company by year end.Read more »
BUSINESS March 12, 2013 | 2:44 PM
- Increase in China automobile sales may be a sign of economic recovery
- Auto sales in China to hit 20.8 million units in 2013, up from 19.3 million last year
- German brands hold largest market share in China among foreign manufacturers
Automotive sales in China, the largest vehicle market in the world by number of units sold, rose 19.5% in January and February compared to the same period in 2012, which may be a sign of economic recovery.
This comes after two years of modest market growth.Read more »
BUSINESS March 11, 2013 | 4:05 PM
- Google cutting 10% of workforce in Motorola Mobility Holdings due to poor performance
- Cuts mostly to affect employees in China, India
- Motorola Mobility to exit unprofitable markets, focus efforts on a few cell phones rather than many low-end devices
Search engine giant Google Inc. will be laying off 1,200 employees in its Motorola Mobility Holdings Inc. unit because it is losing money and not competitive, according to a company email published in the Wall Street Journal.
Motorola Mobility also is said to be unable to keep costs down.Read more »