Business News - part 42
BUSINESS February 20, 2013 | 5:15 PM
- BMW to recall 30,265 utility vehicles in US
- Chrysler to recall nearly 370,300 pickups and SUVS, mostly in North America
- Repairs to be made free of cost to customers
Automotive manufacturing giants BMW and Chrysler Group LLC have announced the recall of thousands of vehicles in North America.
According to the US National Highway Traffic Safety Administration, BMW has recalled 30,265 of its luxury X5 utility vehicles. Only vehicles equipped with V8 engines from model years 2007-2010 are affected.Read more »
BUSINESS February 19, 2013 | 6:08 PM
- US Airways and American Airlines merge in $11 billion deal
- Merger expected to generate over $1 billion in new revenue and annual savings by 2015
- Merger latest in a series of airline industry consolidations ongoing since 2005 linked to financial crisis
US Airways, the fifth-largest airline in the US, and AMR’s American Airlines, the third-largest, have joined forces in an $11 billion merger to become the number-one air carrier worldwide.
The new airline will be run by Doug Parker, US Airways Chief Executive Officer, and will surpass the already-consolidated United Continental Holdings Inc. and Delta Air Lines Inc.Read more »
BUSINESS February 18, 2013 | 5:56 PM
- PPR shares at highest level in 12 years, sales jump 20%
- Nearly 40% of PPR’s global sales come from emerging markets
- PPR brand Puma reports 70% decline in profit
French luxury goods firm PPR SA forecasts 2013 will be a year of growth as shares are up more than 7% to their highest level in a dozen years.
Sales have jumped 20% to $13 billion, and are being driven in part by the success of the Bottega Veneta handbag line. Overall, nearly 40% of PPR’s global sales came from emerging markets.Read more »
BUSINESS February 15, 2013 | 5:19 PM
- Comcast buys NBCUniversal to take over media conglomerate that includes NBC Network, SyFy, MSNBC, Bravo, USA Network, Universal Pictures film studio and Universal Studios theme parks
- Purchase originally planned for after 2014 but Comcast buying now to avoid higher prices
- Customers should not see cable prices increase
Comcast Corp, the most valuable media company in the US, is purchasing General Electric Co.’s stake in entertainment company NBCUniversal for $16.7 billion, taking full control of a media conglomerate.
The purchase includes NBC Network; cable channels SyFy, MSNBC, Bravo and USA Network; Universal Pictures film studio and Universal Studios theme parks. Comcast also will purchase the headquarters of NBCUniversal, 30 Rockefeller Plaza and CNBC’s headquarters in New Jersey for $1.4 billion.Read more »
BUSINESS February 14, 2013 | 3:51 PM
- Weakness of European tire market causes Goodyear to revise forecast down
- Goodyear broke even in 2012
- Three-year strategy expected to improve European sales
Goodyear Tire & Rubber Co., the top US tire maker, has lowered its forecast for 2013 in response to a weak European tire market.
Goodyear expects the global tire industry to increase at a slower than expected pace with volume growing at single-digit percentage rates. Operating profit was revised from $1.6 billion, to $1.4 billion to $1.5 billion.Read more »
BUSINESS February 13, 2013 | 5:25 PM
- Boeing Dreamliner passes first test flight after battery incidents
- Boeing expects delays in Dreamliner production
- Japan, India, Poland, Chile ban use of Dreamliner until answers are provided
Nearly one month after the US Federal Aviation Administration suspended aircraft manufacturer Boeing Co.’s (BA) 787 Dreamliner jet due to a series of battery-related issues, the aviation giant has now successfully completed its first test flight.
Mid January, several Boeing Dreamliner jets were grounded worldwide to investigate battery-related incidents, including a fire on board a 787 that was parked at Boston's Logan International Airport as well as an in-flight problem that occurred on a different airplane in Japan.Read more »
BUSINESS February 12, 2013 | 6:18 PM
- Redesigned Tundra to be sold in $40,000 high-end US truck market
- Toyota required to offer new features to gain US customers
- Tundra design changes inspired by customer feedback
Automotive manufacturer Toyota Motor Corp. has updated the design and changed the marketing strategy of its 2014 Tundra pickup truck in the hopes of increasing sales.
At the Chicago Auto Show, Toyota’s US senior vice president Bob Carter said the new Tundra truck has a smoother ride, quieter cabin and a more luxurious design. Toyota is adjusting to meet and capture growing demand in the full-size truck market above $40,000.Read more »
BUSINESS February 11, 2013 | 4:52 PM
- Dell goes private in biggest leveraged buyout deal post-financial crisis
- Dell to take on $17 billion in debt to finance transaction; Microsoft contributing $2 billion loan
- Dell-Silver Lake deal underlines decline in PC industry
Leading computer manufacturer Dell Inc. is going private via a $24.4 billion deal between the company’s CEO Michael Dell and Silver Lake, an international private equity firm focused on technology.
With this sale, Michael Dell will retain the majority control, or “significant equity,” of the three-decade-old company he founded as a University of Texas student. He foresees the deal as a way to grant Dell more flexibility to aggressively turn around weak revenue.Read more »
BUSINESS February 8, 2013 | 4:25 PM
- Virgin Media acquisition to help Liberty Global enter competitive European market
- 80% of Liberty Global revenue to come from Europe
- Liberty owned by American billionaire John Malone, known as America's King of Cable
Liberty Global, the world's second-largest cable company, is buying Virgin Media, Britain’s second-largest cable television provider, for over $16 billion to gain ground in one of Europe's largest and most competitive telecom markets.
Britain is Europe’s largest cable TV market by revenue.Read more »
BUSINESS February 7, 2013 | 11:50 AM
- Oracle pays over $2 billion for Acme Packet, session border control market leader
- Acme Packet largest Oracle acquisition since Taleo takeover
- Oracle, Acme Packet good fit because Acme customers already dependent on Oracle business management software
Oracle Corp., the world’s second-largest maker of business applications, is buying Acme Packet Inc. for $2.1 billion to expand into the networking equipment market.
Acme Packet is the leader in the internet session border control market, which is an industry worth under $1 billion. Acme Packet enables delivery of voice, data and unified communications services and applications across IP networks, and offers tools for the secure transfer of data across the internet.Read more »