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Business News - part 42

Lockheed Martin To Cut Jobs, Close Facilities In US By Mid-2015

Lockheed Martin To Cut Jobs, Close Facilities In US By Mid-2015

BUSINESS

  • Lockheed Martin to cut 4,000 jobs across US; facilities to close in five states
  • Aeronautics, which accounts for 30% of sales, will not see any cuts
  • US Defense Department budget reduced by $52 billion in 2013

Defense contracting giant Lockheed Martin plans to cut 4,000 jobs and close facilities in five states to cut costs in response to reduced US government spending.

The closures, totaling 2.5 million square feet of real estate, will be completed by mid-2015. No new work has been anticipated for these locations, and site programs will shift to other locations.

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Volkswagen Recalls 2.6 Million Vehicles, With Focus On China

Volkswagen Recalls 2.6 Million Vehicles, With Focus On China

BUSINESS

  • Nearly half of recalls affect China, Volkswagen’s most significant market
  • Volkswagen strives to double its manufacturing capability to more than 4 million cars per year by 2018
  • New vehicles more technologically advanced, leading to greater risk of recalls

Europe’s largest car manufacturer, Volkswagen, is dealing with a worldwide vehicle recall of nearly 2.6 million sport-utility vehicles, pick-up trucks and cars as it intensifies attempts to overtake Toyota and General Motors for top sales results.

Nearly 50% of recall touches vehicles in China, Volkswagen’s largest market. The automaker’s division in China will recall 640,309 vehicles starting November 25 to change the oil in several unspecified 7-speed double-clutch gearboxes. This corresponds with Volkswagen’s recommendation that 1.6 million vans and cars need to replace the synthetic oil in their dual-clutch gearboxes with mineral oil.

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Retail: Wal-Mart Cuts 2013 Annual Outlook For Second Time

Retail: Wal-Mart Cuts 2013 Annual Outlook For Second Time

BUSINESS

  • Wal-Mart customer base affected by economic challenges
  • Revenue for US Wal-Mart stores declines 0.1%, while total US sales up 2.4%
  • US stores represent 58% of Wal-Mart’s total sales; revenue has declined for a third straight quarter

Wal-Mart Stores Inc., the world’s biggest retailer, has cut its 2013 annual outlook for the second time in three months as its customer base faces ongoing economic challenges, including stagnant wages and higher social security charges.

During the third quarter, net sales grew 1.6% to $114.88 billion and total sales grew 2.4%. International-division sales grew 0.2% to $33.1 billion.

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PC Maker Lenovo Boosts Profit 36% With Smartphone, Tablet Sales

PC Maker Lenovo Boosts Profit 36% With Smartphone, Tablet Sales

BUSINESS

  • Lenovo revenue up 13% to $9.8 billion
  • Lenovo smartphone shipments up 78%; tablets up four-fold to 2.3 million
  • Lenovo desktop PC sales dropped 3% to $2.7 billion; laptop sales increased by 8% to $5 billion

Chinese PC manufacturer Lenovo reported a higher-than-expected 36% rise in its recent quarterly profit, with the increase linked to solid sales growth for mobile devices, including smartphones.

Over the three-month period ending September 30, Lenovo earned $220 million, with revenue up 13% to $9.8 billion.

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Indian Regulators Approve Abu Dhabi-based Etihad Airways’s $325 Million Stake in Indian Airline Jet Airways

Indian Regulators Approve Abu Dhabi-based Etihad Airways’s $325 Million Stake in Indian Airline Jet Airways

BUSINESS

  • Abu Dhabi airline would control 24% of Jet Airways
  • Foreign investment previously barred in India
  • Indian airline passenger growth set at 10% to 20% annually

India's antitrust regulator, the Competition Commission, has approved Abu Dhabi-based Etihad Airways’ proposal to buy a 24% stake in Jet Airways for $325 million.

The commission studied whether Etihad would gain substantial control of Jet, if Jet's new position would hurt other carriers and what impact the deal would have on other Indian airlines. It ruled the deal was not likely to have an adverse effect on competition in India.

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British Airways, Vueling Help Parent Company IAG Boost Profit

British Airways, Vueling Help Parent Company IAG Boost Profit

BUSINESS

  • British Airways reports operating margin of close to 13% thanks to strong demand for key trans-Atlantic routes and effective cost control
  • Vueling reports operating margin at 25% due to successful product strategy, low-cost base and increased tourism to Barcelona
  • IAG competitors Air France-KLM Group and Deutsche Lufthansa AG reported unimpressive third quarter

International Consolidated Airlines Group SA, Europe’s third-largest airline group and the parent company of British Airways, saw third-quarter profit double thanks to British Airways and Spanish carrier Vueling.

During the quarter, operating profit was $925 million and profit after taxation was $777 million. Profit has continued to rise during the first nine months of the year, compared to a loss during the same period in 2012.

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Kellogg's “Project K” Cuts 2,000 Jobs To Reduce Costs

Kellogg's “Project K” Cuts 2,000 Jobs To Reduce Costs

BUSINESS

  • Kellogg job cuts part of savings plan called Project K
  • Project K expected to save $425 million to $475 million per year by 2018
  • Kellogg facing increased competition from generic brands, changing consumer habits

Food-manufacturing business Kellogg Co., the world's largest maker of breakfast cereals, has launched a four-year cost-saving plan called Project K aimed at boosting profitability.

Some 2,000 jobs, or 7% of Kellogg’s global workforce, will be eliminated and production capacity cut. The plan also involves consolidating factories and product lines as well as increasing growth in emerging markets and emphasizing regional brands.

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Vivendi Sells Stake In Maroc Telecom To UAE’s Etisalat

Vivendi Sells Stake In Maroc Telecom To UAE’s Etisalat

BUSINESS

  • Vivendi sells stake as part of strategy to streamline
  • Purchase may not be wisest for Etisalat
  • Vivendi to spin off SFR business

French media and telecom group Vivendi SA is selling its 53% stake in North African phone operator Itisalat Al Maghrib, also known as Maroc Telecom, to Emirates Telecommunications Corp. or Etisalat Group, for $5.67 billion in an effort to streamline operations.

Vivendi plans to focus and strengthen its media and content activities in Universal Music Group and French pay-TV company Canal Plus, which it believes will offer greater growth potential. Vivendi also plans to pay down its debt.

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Apple & GT Advanced Technologies Open New Manufacturing Facility In Arizona

Apple & GT Advanced Technologies Open New Manufacturing Facility In Arizona

BUSINESS

  • Apple manufacturing plant to be shared with GT Advanced Technologies
  • GT Advanced Technologies to provide sapphire crystal technologies for Apple products
  • New plant to generate 700 local manufacturing jobs and up to 1,300 construction jobs

Consumer electronics giant Apple will build a manufacturing plant in Arizona in conjunction with technology company GT Advanced Technologies, which will produce sapphire material to be used in some Apple products.

Apple did not specify which components would be manufactured at the plant, but did indicate the new site helps furthers Apple’s domestic efforts by generating as many as 700 local manufacturing jobs and up to 1,300 construction jobs.

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US Consumer Confidence Drops In October

US Consumer Confidence Drops In October

BUSINESS

  • US consumer confidence falls to 71.2 in October, down from 80.2 in September
  • Confidence reached 82.1 in June, the highest level in 5.5 years
  • 17.5% of US consumers expect economy to get worse in next 6 months

Consumer confidence in the United States fell sharply in October to 71.2, down from 80.2 in September, according to a report by research group The Conference Board.

The decline is linked to the 16-day US government shutdown.

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