Business News - part 9
BUSINESS February 28, 2014 | 11:24 AM
- Airbus to produce 46 model A320 aircraft per month produced by 2016
- Airbus has backlog of 5,500 jets
- Airbus reports 2013 income up 21%
Airbus Group NV, Europe’s largest aerospace company, plans to increase production of its A320 model by 10% to 46 aircraft per month by 2016.
Last year, demand for new aircraft rose 22%, and Airbus secured orders for over 1,500 new planes worth $225 billion in list prices. Growth was seen primarily in emerging markets, but also from American carriers replacing their aging fleets.Read more »
BUSINESS February 27, 2014 | 5:09 PM
- Terms of deal not revealed
- Netflix to provide videos quicker, more clearly
- US law allows providers to charge websites more
Netflix Inc., the world’s largest subscription video-streaming service, has agreed to pay Comcast Corp., one of the largest US broadband providers, for faster internet speeds to provide customers with better service.
The terms of the deal were not revealed, but are rumored to be in the millions of dollars, according to Bloomberg.Read more »
BUSINESS February 26, 2014 | 4:15 PM
- Comcast buys Time Warner Cable for $45.2 billion to create a dominant force in the US cable market
- Comcast and Time Warner Cable anticipated to save $1.5 billion in yearly fees over 3 years
- Joint company to have roughly 30 million subscribers
Media and communications giant Comcast Corp. plans to acquire Time Warner Cable Inc. at a $45.2 billion price tag; this all-stock agreement would see the two largest cable TV corporations in the US joining forces.
This deal is anticipated to close by year end once regulatory and shareholder approval is given.Read more »
BUSINESS February 25, 2014 | 6:14 PM
- Rakuten buys Viber to expand into emerging markets
- Viber has 300 million users
- Social messaging app market to continue growing
Japanese Internet services company Rakuten Inc. has bought messaging app and VoIP company Viber for $900 million, allowing it to expand into emerging markets.
Rakuten Group owns Canadian e-reader Kobo and online retailer Play.com, and offers 40 services to 225 million global members.Read more »
BUSINESS February 24, 2014 | 4:59 PM
- Barclays cutting jobs as part of restructuring efforts in face of international exchange rate scandal and fourth quarter loss of over $1 billion
- Rebuilding efforts since 2012 include 7,650 job cuts and future reduction of business units
- Barclays under fire for increasing funding to bonus pool
London, England-based Barclays bank will eliminate up to 12,000 jobs—roughly 8% of its present labor force of 140,000—in 2014. These jobs cuts are the latest in a challenging restructuring plan that started last year and will involve 7,000 jobs in Britain as well as about 800 management personnel positions.
These cuts are a way to mitigate heavy financial losses in the fourth quarter, linked with reputational damage as well as higher government charges for banks with liabilities in excess of 20 billion pounds (roughly $33.4 billion).Read more »
BUSINESS February 13, 2014 | 5:44 PM
- Mallinckrodt paid $1.3 billion for American biopharmaceutical firm Cadence Pharmaceuticals
- Mallinckrodt to reduce focus on medical imaging and instead invest in specialty drugs
- Cadence’s top drug brings in millions in revenue
Irish pharmaceutical company Mallinckrodt PLC has agreed to purchase American biopharmaceutical firm Cadence Pharmaceuticals for $1.3 billion to increase its presence in hospitals and add specialty pharmaceuticals to its portfolio.
Mallinckrodt was spun off from medical-devices firm Covidien PLC in July, becoming a standalone company. It makes specialty pharmaceutical products, including drugs for depression, inflammatory diseases, cerebral or spinal spasticity and pain management. It also manufactures imaging agents, active pharmaceutical ingredients and generic drugs.Read more »
BUSINESS February 12, 2014 | 11:01 AM
- Asia-Pacific airline fleets to total 14,750 aircraft by 2032
- Asia-Pacific to account for 36% of world deliveries of both passenger and freight planes
- Single-aisle jets flown mostly by discount airlines to represent 69% of new aircraft by 2032
Airlines in Asia Pacific are expected to see substantial growth by 2032, with total fleet expansion to total 14,750 aircraft, according to Boeing.
In 2012, the region's total fleet consisted of 5,090 planes; the 12,820 additional aircraft are expected to be worth $1.9 trillion. Increased wealth from an emerging middle class in the region has lead to anticipated growth.Read more »
BUSINESS February 11, 2014 | 11:12 AM
- Coca-Cola to invest $1.25 billion in Green Mountain Coffee to create and sell pod-based, single-serve Coca-Cola products via new Keurig Cold drink machine
- Green Mountain to incorporate more than just Coca-Cola brand drinks in Keurig Cold, as per customer request
- Deal combines Keurig’s technology and beverage packing expertise with Coca-Cola’s marketing and branding strengths
Soft drink giant Coca-Cola Co. and Green Mountain Coffee Roasters will join forces to create Keurig Cold, a new in-home cold drink machine. The system is expected to be launched sometime toward the end of 2014 or the beginning of 2015.
Keurig Cold will be comparable to Green Mountain’s hot Keurig system in giving out cold drinks, including juices, cold teas, enriched waters, sports drinks and carbonated drinks via single-serve pods.Read more »
BUSINESS February 10, 2014 | 3:30 PM
- Sony to sell PC business and make TV unit a subsidiary after a tough fiscal year
- Sony to cut 5,000 jobs to save $1 billion in annual costs
- Sony to now focus on mobile business
Japanese electronics giant Sony Corp. has decided to restructure after a rough fiscal year, ending March 31, when it predicts a net loss of $1.08 billion. This comes three months after the company predicted a $294 million profit, and marks the company’s fifth loss in six years.
Sony plans to sell its PC business, make its television business a subsidiary by the end of July and slash 5,000 jobs worldwide by the end of the fiscal year, with the cuts expected to save $1 billion in annual costs. These positions were not included in the 10,000 job cuts Sony announced last year.Read more »
BUSINESS February 7, 2014 | 5:58 PM
- Toyota expects weak yen as well as aggressive cost-cutting and marketing efforts to push operating profits to higher than pre-recession figure
- Yen valued at less than 25% of value of US dollar great factor in increased demand for export-based Japanese car makers, including Toyota
- Analysts tempering positive outlook with possible challenges
Car manufacturer Toyota Motor Corporation anticipates operating profit will be valued at 1.9 trillion Japanese yen ($18.8 billion) for the fiscal year ending in March.
The yen’s ongoing weakness also boosted Toyota’s third quarter earnings to a higher-than-anticipated 600 billion yen operating profit, almost five times greater than third quarter earnings a year prior.Read more »