Business News - part 41
BUSINESS October 15, 2013 | 4:29 PM
- Teva to lay off 5,000 employees as best-selling drug faces increasing competition
- Cutbacks expected to save $2 billion by end of 2017
- Teva to promote research programs and enlarge its generic-drug business, while aggressively streamlining assets from non-core businesses
The world’s largest marker of generic drugs Teva Pharmaceutical Industries is cutting 5,000 jobs, or 10% of its labor force, to combat increasing competition. The restructuring will incur $1.1 billion in total charges, but cuts are expected save the company nearly $2 billion by the end of 2017.
Teva’s workforce cuts are Chief Executive Officer Jeremy Levin’s means of increasing the company’s profitability and reaching target cost savings he set out in 2012.Read more »
BUSINESS October 14, 2013 | 3:14 PM
- Toyota Motor Corp cuts price of 2014 Prius plug-in models to meet California’s Zero-Emission Vehicle Program, boost sales
- Toyota sold 12,750 Prius models in 2012, missing goal of 15,000
- GM’s Volt plug-in leads hybrid sales in the US followed by Nissan’s all-electric Leaf hatchback
Automotive manufacturer Toyota Motor Corp, the world’s largest seller of hybrid vehicles, is reducing the price of its 2014 plug-in Prius models in the US to meet California’s Zero-Emission Vehicle Program.
Toyota has the largest share of vehicle sales in California, and must sell more low-polluting models than its competitors. The reduction is intended to boost sales and American consumers’ willingness to buy rechargeable vehicles.Read more »
BUSINESS October 11, 2013 | 11:43 AM
- Walmart to purchase Bharti’s 50% stake to take control of 20 wholesale stores
- Walmart unable to set up stores without Indian partner; laws in India very restrictive to foreign retailers
- Walmart not in talks with potential partners, but plans to continue to expand its cash and carry business
Walmart Stores, the world's largest retailer, is ending its six-year partnership with business group Bharti Enterprises, leaving it without a domestic partner in India. The partners operate wholesale cash and carry stores under the name Best Price Modern Wholesale, and are working to finalize details of the dissolution
Walmart will purchase Bharti's 50% stake for an undisclosed amount, giving it control of 20 wholesale stores and its supply chain. Bharti, meanwhile, will purchase Walmart’s compulsory convertible debentures in Cedar Support Services, a company owned and controlled by Bharti Enterprises.Read more »
BUSINESS October 10, 2013 | 5:13 PM
- Alcatel-Lucent to cut 15,000 jobs by end 2015; then create 5,000 new positions
- Cuts touch Alcatel-Lucent operations around the world
- Strong competition and slowing economy have impacted productivity
Telecom equipment giant Alcatel-Lucent will eliminate a total of 15,000 jobs by 2015 year-end.
However, as part of what they are calling “The Shift Plan”, the company will also create 5,000 new positions. All efforts are aimed at repositioning Alcatel-Lucent’s focus on next-generation technologies, including IP Networking, Cloud and Ultra-Broadband Access to restore profitability and better serve the needs of its customers.Read more »
BUSINESS October 9, 2013 | 12:05 PM
- Japan Airlines deal marks largest A350 order so far in 2013
- Airbus holds 13% share of Japanese market; Boeing has 80%
- Asia-Pacific aviation market forecast to overtake North American and European markets in air traffic by 2032
French aircraft manufacturer Airbus has won an order from Japan Airlines for 31 A350 planes worth nearly $9.5 billion, with an option to add an additional 25 aircraft.
The A350 is a rival to Boeing's 787 Dreamliner, and is designed to be 25% more fuel efficient than previous models. So far 725 orders have been placed for the new model.Read more »
BUSINESS October 8, 2013 | 4:35 PM
- Monsanto buys Climate Corp to help farmers manage risk and increase crop yields
- Climate Corp to combine with Monsanto’s prior purchase, Precision Planting LLC, to form new Integrated Farming System platform
- Monsanto expansion plans expected to increase sales by $20 billion
Leading global seed company Monsanto Co will spend $930 million to buy weather data firm Climate Corp to help farmers manage risk and increase crop yields through farm modeling and weather data science.
Founded by former Google data scientists and software engineers in 2006, Climate Corp draws on data, including predictive models, and what the company’s CEO David Friedberg terms “hyper-local weather monitoring” to assist farmers in making decisions that can increase corn yields by up to 30 to 50 bushels per acre.Read more »
BUSINESS October 7, 2013 | 5:53 PM
- Foreign automotive manufacturers Toyota, Honda, Nissan and Hyundai report US sales declines in September
- General Motors auto sales down 11% in September
- Chrysler records best September auto sales since 2007, selling 143,017 vehicles
US automotive industry sales in September fell 4.2% to total 1.14 million vehicles, marking the first year-on-year sales decline in more than two years says research firm Autodata.
What caused the drop? Compared to 2012, there were two fewer shopping days in 2013, and the Labor Day shopping weekend was included in August’s figures.Read more »
BUSINESS October 7, 2013 | 4:06 PM
- Tesco partners with CRE to offset recent losses
- Joint venture to operate cash-and-carry businesses, liquor stores, convenience stores, supermarkets and hypermarkets in seven of China’s most populous and wealthiest provinces
- Joint venture forecast to generate $16 billion in annual sales
Britain's largest retailer Tesco Plc. will create a retail giant in China with state-owned China Resources Enterprise Ltd. to help offset two years of losses.
Tesco will pay $558 million and have a 20% stake in the venture, while CRE will have 80%. After five years, Tesco’s share could rise to 25%.Read more »
BUSINESS October 4, 2013 | 11:57 AM
- Merck cuts 8,500 jobs to reduce operating expenses
- Merck to focus efforts on more high-growth opportunities, including diabetes and cancer
- Competition from generic drugs impacts pharmaceutical industry as a whole
Merck & Co, the second-biggest US drugmaker by sales, is cutting 8,500 jobs in an effort to decrease its annual operating costs by as much as $3.0 billion by 2015.
Part of the cuts will touch R&D, while the other half will be jobs eliminated from its commercial arm, including its marketing and sales force. This announcement follows the company’s 2011 and 2012 job cuts, which totaled 7,500 positions.Read more »
BUSINESS October 3, 2013 | 4:02 PM
- Apple ranks first, pushing last year's leader Coca-Cola into third place
- Top ten mostly technology companies
- Fastest-rising brands: Apple, Google, Facebook, Amazon and Prada
Apple Inc. is 2013’s most valuable brand in the world, pushing Coca-Cola out of the top spot according to the annual Best Global Brands report by consulting company Interbrand; Apple ranked eighth in 2011 and second in 2012.
This marks the first time in the report’s 13-year history that Coca-Cola was not the top brand. The soft drink manufacturer is now in third place.Read more »