Top Headlines - part 72

5,000 Jobless As Whirlpool Scales Workforce Back By 10%

5,000 Jobless As Whirlpool Scales Workforce Back By 10%

BUSINESS

  • Whirlpool slashes full-year revenue forecast by over 35%
  • Arkansas plant to close; Polish operations to be moved to Germany
  • Whirlpool stock down more than 40% so far in 2011

Appliance manufacturer Whirlpool will let 5,000 employees go, or around 10% of its global workforce, to combat falling demand and higher material costs.

Despite a doubling of Whirlpool’s profits in the third quarter, the company has brought down its expectations for full-year revenue by more than 35%. Sales of larger appliances such as washing machines have been slowed by the economic recession. Hiking up its sales prices in the face of climbing material expense has not made the company exempt from falling demand.

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Saab Saved From Brink Of Death By Chinese

Saab Saved From Brink Of Death By Chinese

BUSINESS

  • Chinese automobile companies reach tentative deal to buy Saab
  • Saab days away from bankruptcy
  • Up to $1.5 billion may be needed to turn company around

Chinese automakers Zhejiang Youngman Lotus Automobile Company and Pang Da Automobile Trade Company have tentatively agreed to buy Swedish automaker Saab Automobile. The deal comes days before Saab would have been forced to declare bankruptcy.

Saab has been struggling financially for over the past year: in 2006, the company sold 133,000 vehicles, but by 2010, that number was down to 31,700 vehicles. In March 2011, production was halted due to lack of funds, with the company filing for protection from its creditors in September.

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Take Off For Boeing's Dreamliner Happens 3 Years Behind Schedule

Take Off For Boeing's Dreamliner Happens 3 Years Behind Schedule

BUSINESS

  • Boeing’s new 787 Dreamliner completes first flight
  • Flight launch delayed due to global shared workload of aircraft pieces
  • Airlines cutting back Dreamline orders
  • Boeing sees improved Q3 share price

Boeing’s new 787 Dreamliner has completed its inaugural flight from Hong Kong to Tokyo, operated by All Nippon Airways Co. (ANA), after a long three-year launch delay. The Dreamliner was first publicized nine years ago as Boeing’s reaction to the airline industry’s financial fall-out post September 11.

Originally, the launch was planned for 2008, and delays have since cost Boeing billions of dollars, but ANA President and CEO Shinichiro Ito still calls the Dreamliner a “game changer.”

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America Grows 2.5% As Spending Resumes

America Grows 2.5% As Spending Resumes

ECONOMY

  • US GDP grew 2.5% in the third quarter
  • Americans save less due to less income, increase spending
  • Unemployment claims drop, rate forecast to remain near 9%

Gross domestic product grew 2.5% this quarter, up 1.3% from the previous quarter, mirroring the median forecast by a Bloomberg economic survey. Third quarter growth, which exceeded its pre-recession peak, rose due to a sudden increase in public consumption and company investment.

Household purchases, which account for the majority of GDP, increased by 2.4%, exceeding economists' forecasts. Corporate spending on goods increased by over 17%, the largest increase in roughly a year. Company investments contributed 1.2% to overall national growth.

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Oil Earnings Recap: Exxon Mobil, Shell, Statoil, Eni

Oil Earnings Recap: Exxon Mobil, Shell, Statoil, Eni

FINANCE

  • Exxon revenue climbs 32% to $125 billion, upstream earnings up 185%
  • Shell saw current cost of supply net income rise over 40% to $7 billion in Q3
  • Occidental Petroleum up 50%
  • Statoil saw 50% jump in adjusted net income, reaching almost $2.1 billion
  • Eni logged a near 14% drop in production, but adjusted net revenue climbed almost 20%

Exxon Mobil has reported third quarter earnings of $10.3 billion despite a 4% drop in oil equivalent production, above estimates and more than 40% higher than earnings in the third quarter of 2010. Exxon Mobil revenue reached in excess of $125 billion, close to a 32% increase.

The company’s upstream earnings rose more than 185% to almost $8.5 billion, while downstream earnings rose just over 36% to over $1.5 billion.

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Pharma Update: Sales of 'Good Cholesterol' Drug Niaspan Flat After Study

Pharma Update: Sales of 'Good Cholesterol' Drug Niaspan Flat After Study

BUSINESS

  • Sales of Abbott cholesterol drug Niaspan down after study shows it might not reduce risk of heart attack
  • Lipitor soon to be available in generic form
  • Doctors debate need for cholesterol test

A study conducted by the National Institutes of Health concludes that the drug Niaspan, which is used to increase good cholesterol, may not reduce the risk of heart attack. According to the study, in patients with heart disease, Niaspan did not protect against heart attack when taken in conjunction with the cholesterol drug Zocor.

Many doctors say when a patient is on a drug to lower his bad LDL cholesterol, it isn’t necessary to prescribe another drug to raise the good HDL cholesterol.

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Shell Q3 Profit: Net Doubles To Nearly $7 Billion

Shell Q3 Profit: Net Doubles To Nearly $7 Billion

FINANCE

  • Shell's revenue up 33% to $127 billion, net profit up to $6.98 billion
  • Shares rise 1.3% to €26.24
  • Global oil prices 48% higher than last year

Global oil and gas leader Royal Dutch Shell has reported profit of almost $7 billion, doubling third-quarter profit from last year thanks in large part to rising oil prices. Net profit came through at $6.98 billion, compared to predictions of $6.54 billion from analyst at investment research firm FactSet.

Revenue jumped 33% to $127 billion, and shares were up 1.3% to €26.24 in Thursday morning trading in Amsterdam.

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Disappointing Forecast For Nintendo Says First Loss In 3 Decades

Disappointing Forecast For Nintendo Says First Loss In 3 Decades

FINANCE

  • Weak Wii, 3DS sales lead to Q2 loss
  • Forecast for 20 billion yen ($264 million) loss
  • Post-war high for yen compounds difficulties

Nintendo posted its second straight loss of the year yesterday, prompting executives to forecast the company’s first annual loss in over three decades.

Slow second-quarter sales of its Wii and 3DS handheld console dragged the world’s biggest video game maker further into the red, with expectations of as much as 20 billion yen ($264 million) in losses for the fiscal year ending March. Sales forecasts also dropped 12% to 790 billion yen.

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Google Content Removal Requests Surge in UK

Google Content Removal Requests Surge in UK

BUSINESS

  • 71% rise in UK requests to remove online content
  • Google complied in 80% of 65 content removal requests
  • Brazil tops list with 224 requests followed by Germany (118), United States (92)

Internet giant Google has reported a 71% jump in the United Kingdom of official requests to remove material from its web search results and YouTube video site. Between January and June 2011, there was a total 65 requests from the UK government and court authorities, demanding the removal of 333 various forms of internet content.

Google said that in over 80% of requests it either fully or partially complied with the orders.

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Groupon Sets IPO Date In Spite Of Continued Analyst Scrutiny

Groupon Sets IPO Date In Spite Of Continued Analyst Scrutiny

BUSINESS

  • Groupon to launch IPO on Nov. 4 with 30 million shares
  • Valuation estimated to reach up to $11.4 billion
  • US roadshow planned to present investors with figures, starting in New York

Despite recent criticism from market analysts, online coupon giant Groupon.com is set to launch its IPO on November 4 after a US-based roadshow – offering 30 million shares at $16-$18 per share.

Although it has scaled back considerably from its original plans for a $750 million IPO, Groupon disclosed at a recent regulatory filing that it now expects net proceeds of approximately $480 million from its upcoming initial public offering. While the stock offered in the IPO represents only around 5% of the entire company, upon sale of its offered shares valuation is estimated to reach between $10.1 billion and $11.4 billion, or just a little less than 50% of its original IPO estimate of $20 billion.

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