Business News - part 5
BUSINESS March 5, 2013 | 12:05 PM
- Iberia workers protesting 3,800 job cuts and salary deductions
- Iberia owner IAG suffered operating loss in 2012
- Thousands of passengers rescheduled for other airlines
Pilots and employees of Spanish airline Iberia, Europe's largest carrier to Latin America, are striking at Madrid's Barajas airport over owner International Airlines Group’s plans to reduce salaries and cut 3,807 jobs.
IAG suffered a $882 million operating loss in 2012 caused by the economic crisis in Spain as well as competition from low-cost airlines and high-speed train service.Read more »
BUSINESS March 4, 2013 | 3:37 PM
- Purchase to increase Linn Energy’s oil reserves by 34%
- Linn Energy to up liquids exposure from 46% to 54%
- Linn Energy to spend $2 billion in deals annually
US oil and gas producer Linn Energy LLC is buying Berry Petroleum Co. for $2.42 billion in stock, with the goal of increasing its oil reserves by 34% and raising output by a third.
Linn Energy is the first publicly traded independent oil and natural gas limited liability company. It was founded in 2003, and purchases older oil and natural gas fields.Read more »
BUSINESS February 22, 2013 | 4:52 PM
- Office Depot, OfficeMax merger expected to generate $18 billion entity
- Merger aims to accelerate innovation for customers and become more competitive
- Office supply revenue drops due to recession; competition from online sales and big discount chains
Office supplies leader Office Depot Inc. and its rival Office Max Inc. have agreed to merge in a near $1.8 billion stock transfer.
Although officials from both OfficeMax and Office Depot have declined at this point to say who will lead the combined company as well as where it will be located, both companies are referring to the transaction as a “merger of equals” that is expected to be finalized by the end of the year.Read more »
BUSINESS February 21, 2013 | 5:40 PM
- Honda, SolarCity launch $65 million tax equity solar fund
- Fund to finance solar systems for 2,500 to 3,000 residential homes plus 10-20 dealerships
- Partnering with SolarCity to help Honda reach goal of reducing greenhouse gas emissions 50% by 2050
Honda Motor’s US division and solar-power provider SolarCity Corp. are partnering to finance a $65 million tax equity fund to provide US Honda and Acura customers and dealerships with solar panels.
Both companies will put up equal shares to the fund.Read more »
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 »