Business News - part 8
BUSINESS January 21, 2015 | 1:56 PM
- Auto manufacturer may be open to franchising dealerships
- Franchise laws pose challenge to Tesla
- Tesla CEO proposes hyperloop track in Texas
Electric-car manufacturer Tesla is considering franchise dealerships in the United States in order to reach its 2020 goal of selling 500,000 vehicles annually. Dealerships would need to follow Tesla’s requirements.
The company currently sells its cars via manufacturer-owned outlets. However, in some states manufacturer-owned outlets are illegal due to franchising laws that required new cars be sold only through licensed dealerships.Read more »
BUSINESS January 20, 2015 | 11:13 AM
- Company hurt by exchange rates, slower sales
- Earnings were close to analysts expectations
- New drugs helped offset drop in revenue
Healthcare giant Johnson & Johnson recorded a 28% drop in sales during the fourth quarter, caused by exchange rates and slower sales in some divisions.
Domestic sales grew 7.4% to $8.60 billion compared to a year before.Read more »
BUSINESS January 19, 2015 | 2:25 PM
- Google Glass a commercial failure
- Produce faced concerns over privacy
- Competitors have more realistic versions of Google Glass
Tech giant Google Inc. announced it stopped selling Google Glass and has delayed the debut of Google Glass 2.
Only last month Chairman Eric Schmidt said Google Glass 2 would be available soon. Now Google says it won’t be available until the company is ready.Read more »
BUSINESS January 15, 2015 | 12:50 PM
- Stores weren’t expected to turn a profit until 2021
- Closures will cost company
- Retailer had rushed Canadian debut
Target Corp., the second-largest U.S. retail chain, is ending its Canadian subsidiary and will focus on growing its American business.
Target chairman and CEO Brian Cornell explained the closure in a statement: "After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021. Personally, this was a very difficult decision, but it was the right decision for our company,"Read more »
BUSINESS January 14, 2015 | 12:20 PM
- Company not expected to turn a profit until 2020
- New models to help automaker reach its production goals
- Chevrolet Bolt to compete with Tesla Model
U.S. electric car manufacturer Tesla Motors Inc. plans to increase production to a few million vehicles per year by 2025, company founder and CEO Elon Musk said at the Automotive News World Congress.
In 2014, less than 40,000 cars were produced. During the fourth quarter, sales in China were weak due to a misperception about how electric vehicles are charged, a problem Musk said would be fixed this year.Read more »
BUSINESS January 13, 2015 | 12:00 PM
- Several investors have backed startup
- Company grew tenfold in 2014
- Future growth in online grocery delivery unclear
Grocery store delivery startup Instacart has raised an additional $220 million from investors, valuing the company at $2 billion, in order to expand its offerings and its market. Previously, the startup had raised $55 million.
Investors include Kleiner Perkins Caufield & Byers, Sequoia Capital and Dragoneer Investment Group.Read more »
BUSINESS January 12, 2015 | 2:01 PM
- Dollar Tree CEO says company has lost patience
- Family Dollar has delayed vote twice
- Dollar Store bid viewed as much riskier
Dollar Tree Inc. has told Family Dollar Stores Inc. shareholders to accept its $8.5 billion cash and stock bid or the retailer will withdrawal its bid.
Dollar Tree Chief Executive Officer Bob Sasser said the chain has run out of patience, and waiting additional time for a decision will drive up financing costs.Read more »
BUSINESS January 8, 2015 | 12:39 PM
- Drop in smartphone sales contributed to decline
- Company may rebound with microchips, devices
- Smartphone rivals taking advantage of Samsung drop
South Korean technology giant Samsung Electronics Co. says 2014 will be the first year with an annual decline in profit since 2011.
During the fourth quarter, profit was $4.7 billion, a 37% decline from 2013 and the fifth consecutive quarter to post a decline. Sales dropped 12%. In the third quarter, the decline was 60% and profit margins shrank to 7%.Read more »
BUSINESS January 7, 2015 | 12:42 PM
- Decision comes after failure to find other alternative
- Wet Seal posted third-consecutive year of loses
- Retailer and rivals facing slumping teen market
Teen-focused clothing and accessories retailer Wet Seal is closing 338 stores, two-thirds of its locations, effective immediately, after it failed to find other financial options to avoid bankruptcy.
For the first nine months of 2014, the 338 stores represented $316 million in net sales. The retailer did not announce which locations were closed.Read more »
BUSINESS January 6, 2015 | 12:36 PM
- Purchase expands Coach’s footwear offerings
- Stuart Weitzman has strong international presence
- Coach facing increased competition from rivals
Luxury handbag and accessories company Coach Inc. has agreed to purchase women's luxury footwear company Stuart Weitzman Holdings LLC for $574 million, adding to its product offerings.
Coach will pay $530 million in cash upfront with another $44 million payable when revenue targets are met over the next three years. Stuart Weitzman is owned by private equity firm Sycamore Partners.Read more »