Business News - part 41
BUSINESS August 14, 2013 | 5:00 PM
- $1.39 billion Rockwell Collins-Arinc deal marks largest aerospace and defense acquisition in North America so far in 2013
- Business will shift focus from military to defense
- Rockwell Collins plans to win projects for cockpit avionics for the Boeing 777
Rockwell Collins, an American supplier of avionics and other aircraft electronic systems, is purchasing aviation-information management company Arinc from the Carlyle Group LP for $1.39 billion to expand its business beyond the cockpit.
The deal is the largest aerospace and defense deal in North America announced so far this year, and marks the largest in Rockwell Collins history. It comes after months of talks and just days after Kelly Ortberg became the company’s CEO. Ortberg previously led the company’s Government Systems unit.Read more »
BUSINESS August 14, 2013 | 11:21 AM
- Wish-Bone brand expected to bring Pinnacle immediate profit
- Pinnacle to receive $125 million in tax benefits
- Unilever selling food businesses to focus on health and beauty
Pinnacle Foods Inc., the manufacturer of Hungry Man brand frozen dinners, has agreed to purchase the US market leader for Italian salad dressings, the Wish-Bone brand, from Unilever for $580 million, providing the company with tax benefits and cost savings. The sale includes liquid and dry-mix salad dressings under the Wish-Bone and Western brand names.
It does not include a Unilever production facility. Instead, Pinnacle will invest $40-$50 million to consolidate production. Also, under a third-party agreement, the Unilever factory will continue to manufacture products for Pinnacle Foods.Read more »
BUSINESS August 13, 2013 | 12:32 PM
- Global oil consumption expected to grow by 1.1 million barrels/day to 92 million next year, or 1.2% over 2013
- Global economic growth for 2014 trimmed to 3.1% from 3.3%
- IEA predicts US will be world’s largest oil producer by 2017
The International Energy Agency, the Paris-based adviser to energy-consuming nations, has reduced forecast numbers for global oil demand in 2014 in light of the economy growing slower than expected.
The revised estimates show that global oil consumption should grow by 1.1 million barrels a day (or 1.2% compared to estimates for 2013) to 92 million in 2014, which is 100,000 barrels a day less than July’s estimate.Read more »
BUSINESS August 12, 2013 | 5:14 PM
- Apple iPhone total market share down to 13.2% from 16.6% last year
- Android smartphones hold nearly 80% market share; shipments totaled 187.4 million in Q2
- Samsung largest Android manufacturer, ships 39% of all Android smartphones
Apple Inc., manufacturer of the iPhone, saw its smartphone market share drop 3.4% in the second quarter to total 13.2% after customers purchased a higher number of Android and Windows phones, according to research firm IDC.
Meanwhile, total iPhone shipments increased 20% to 31.2 million units.Read more »
BUSINESS August 8, 2013 | 3:17 PM
- Bezos to ‘to invent, to experiment’ after newspaper purchase
- Decision to sell newspaper came after annual budget discussion last year
- Newspaper industry advertising revenues down 55%
The Washington Post, DC’s leading newspaper, will be sold to ecommerce leader Amazon.com founder and chief executive Jeffrey P. Bezos for $250 million.
Included in the sale are The Washington Post and its website, the Southern Maryland newspapers, the Gazette newspapers, the Express newspaper, the Fairfax County Times, the Spanish-language newspaper El Tiempo Latino, and a production plant.Read more »
BUSINESS August 7, 2013 | 4:43 PM
- US Airways, American Airlines to give up London-Philadelphia route slots
- Merger expected to generate $1 billion in synergies annually by 2015
- AMR to hold 72% stake in new company, while US Airways to have 28%
The European Commission has granted approval for the $11 billion merger between US Airways Group Inc. and AMR Corp.’s American Airlines, creating the world’s largest airline.
The regulatory board was concerned with the airlines creating a monopoly on the London-Philadelphia route, and concessions will need to be made. The EU antitrust authority announced: “The decision is conditional upon the release of one daily slot pair at London Heathrow and of other commitments in order to induce entry on the London-Philadelphia route."Read more »
BUSINESS July 25, 2013 | 6:29 PM
- Sales flat compared to 2012
- Remainder of 2013 forecasted to be challenging
- Restaurant chain facing more competition
McDonald’s, the world’s largest fast-food chain by sales, posted a disappointing second quarter because of tougher competition and a weak economy.
In the quarter ending June 30, sales at restaurants open at least 12 months increased 1% globally.Read more »
BUSINESS July 25, 2013 | 12:21 PM
- Sourcefire deal helps Cisco add next-generation security technology
- Sourcefire makes intrusion-detection products; 19% of its revenue comes from anti-hacking technology used by US government
- More acquisitions expected in the IT security industry
Networking equipment manufacturer Cisco Systems has purchased cybersecurity software maker Sourcefire Inc. for $2.7 billion to add next-generation security technology to its portfolio and boost its security business.
Recently, Cisco lost market share in the network security industry to smaller rivals, and now hopes the purchase of Sourcefire will help its reputation and make it a top player in security.Read more »
BUSINESS July 24, 2013 | 5:56 PM
- AMR hits $220 million in profit for Q2 2013, compared to $241 million in losses for same period last year
- American Airlines to merge with US Airways to create largest national airline
- American Airlines boosting capacity by 2.7% this quarter
AMR Corp., the parent company of US airline American Airlines, posted $220 million in profit for the second quarter of 2013 thanks to lower fuel prices and cost-cutting measures taken during its Chapter 11 bankruptcy restructuring.
AMR posted $241 million in losses for the same period in 2012, and these new figures mark the first profit in the second quarter for the company since 2007.Read more »
BUSINESS July 23, 2013 | 6:27 PM
- Orders for healthcare division up 7%
- Cost cutting strategy working better than expected
- Other divisions also see rise in orders
Second-quarter profits for Royal Philips NV rose 30% to $418 million and sales rose 3%, boosted by a strong healthcare unit which saw orders rise 7% compared to the same quarter in 2012.
Phillips’ healthcare division is now its most profitable. The company is the leading medical equipment supplier in the United States and a top-three hospital equipment producer worldwide.Read more »