Business News - part 5
BUSINESS May 12, 2014 | 5:33 PM
- Auto manufacturer close to meeting its goal of 2 million cars
- Sales picking up in Europe
- Rivals also see healthy quarter
Bayerische Motoren Werke AG, the world's largest luxury carmaker, reported a better than expected first quarter thanks for rebounding markets and new models.
Profit rose 2.6% and car sales rose 8.7%. Earnings were $2.03 billion.Read more »
BUSINESS May 8, 2014 | 5:30 PM
- Annual sales were revised in January but losses still greater than forecast
- Wii U not selling well
- Company sees bright future for 2014
Nintendo, the world’s oldest console gaming company, posted $457 million in losses for the fiscal year ending March 31, the third consecutive year of losses. Revenue was only $5.63 billion, down from $6.26 billion in fiscal year 2013.
Poor sales of the Wii U are to blame. In January, the company revised its expected sales to 2.8 million units, down from 9 million, but only 2.72 million sold. Since debuting in November 2012, 6.17 million units have been sold.Read more »
BUSINESS May 7, 2014 | 5:29 PM
- Fiat Chrysler unveiled ambitious sales targets and product strategies to achieve a 60% sales increase through 2018 at recent meeting.
- Plan to boost global competitiveness includes updating Chrysler’s Town and Country minivan and dropping Dodge sedans to focus on a sportier Dodge model.
- Investors showing doubt about plan’s achievability by withdrawing funds.
Fiat Chrysler Automobiles recently announced an aggressive $77 billion plan to boost Maserati, Jeep and Alfa-Romeo sales and refresh its Chrysler line.
Five years ago US-based Chrysler Group and Fiat SpA of Italy entered a partnership but only officially joined forces in January, when Fiat’s acquisition of Chrysler was complete; at a day-long conference held at Chrysler’s Auburn Hills, MI headquarters, Chrysler and Fiat together revealed their product strategies and prospective sales targets for the next five years.Read more »
BUSINESS April 29, 2014 | 1:51 PM
- Sales falling sharpest in handbag division
- North American sales weak compared to rest of world
- Coach facing fierce completion from rivals
Luxury handbag manufacturer, Coach, saw sales decline 7% and profit fall 20% in the third quarter, thanks to weak North American sales and increased competition. Revenue dropped to $1.1 billion, below analysts’ expectations.
In North America, Coach operates nearly 600 retail stores and plans to open 20 more.Read more »
BUSINESS April 28, 2014 | 5:09 PM
- Move affects thousands of employees
- California home to numerous foreign auto headquarters
- Texas has been attempting to lure businesses
The world’s largest automaker, Toyota Motor Corp., has plans to move its U.S. sales headquarters from Torrance, CA, where it has been since 1957 to Plano TX, a Dallas suburb, to save money.
The move would put manufacturing and quality, service, marketing, advertising and sales all in one location and affect 5,300 employees. Three subsidiaries, Toyota Engineering and Manufacturing North America, Toyota Financial Services and Toyota Motor Sales USA, also would make the move, affecting more than 9,400 employees.Read more »
BUSINESS April 25, 2014 | 6:13 PM
- Combined company to become second largest in market
- Number of medical procedures increasing in rebounding economy
- Biomet had started IPO process
American artificial hip and knee manufacturer Zimmer Holdings Inc. has agreed to purchase rival Biomet Inc. for $13.4 billion in cash and shares. The combined company will become the second largest in the orthopedic and muscle injuries market.
In the rebounding economy, patients who had put off elective procedures are having surgeries. The acquisition of Biomet will allow Zimmer to expand into sports medicine, treating injuries such as torn ligaments, extremities, products for the hands and wrists, and trauma, screws and nails used after accidents.Read more »
BUSINESS April 25, 2014 | 5:20 PM
- Primark to open in Boston in 2015
- Eight more Primark stores in Northeast to open in 2016
- Primark hopes to succeed where other UK companies failed
British discount retailer Primark, which is owned by conglomerate Associated British Foods, plans to enter the US market, making it a global company.
Primark will open a 70,000-square-foot store downtown Boston near the end of 2015; an additional eight stores may be opened in the Northeast in 2016.Read more »
BUSINESS April 22, 2014 | 6:59 PM
- Pepsi snack volume grew 2%
- Pepsi looking for new ways to market beverages
- Price increases help boost profit
American multinational food and beverage corporation Pepsi Co. posted a stronger than expected first quarter profit due in part to its snack business.
The company made $12.62 billion in revenue, beating the $12.43 billion analysts forecast, and an increase of 4% from a year earlier; net income was $1.22 billion.Read more »
BUSINESS April 22, 2014 | 9:57 AM
- Novartis vaccine business sold to GlaxoSmithKline for $7.1 billion
- Novartis animal-health business sold to Lilly for $5.4 billion
- Novartis and Glaxo to enter joint venture
Swiss pharmaceutical giant Novartis AG made two deals; the first, selling its vaccine business to Britain’s GlaxoSmithKline Plc for $7.1 billion; and the second, selling its animal-health business to American pharmaceutical company Eli Lilly & Co. for $5.4 billion.
“This is about getting us into fighting shape for the next 10 years,” says Novartis chief executive Joseph Jimenez.Read more »
BUSINESS April 18, 2014 | 7:12 PM
- Starbucks senior executives to move from Amsterdam to London
- UK tax burden to increase
- Starbucks accused of UK tax evasion
Starbucks Corp., the world’s biggest coffee chain, is moving its European, Middle East and Africa headquarters to London from Amsterdam by the end of the year, increasing its tax burden in the UK, the company’s largest and fastest-growing European market.
A number of senior executives will be moved to London, Starbucks said, to better oversee its business in the UK; London also will become the base of company intellectual property rights.Read more »