Wed, Feb 02, 2011 - Page 10 News List

World Business Quick Take

Agencies

JAPAN

Toyota still on top

Toyota remains Japan’s No. 1 global brand, but its value has fallen by nearly a fifth because of the recent massive recalls that dented consumer trust in the quality of its cars, according to an international consultant. An Interbrand report released yesterday said that the value of the Toyota Motor Corp brand dropped 16 percent to US$25.66 billion compared with its last report released a year ago. Toyota’s Lexus luxury model nameplate, which placed seventh last year, dropped to eighth, losing 19 percent of its value, Interbrand said. Interbrand said Honda Motor Co placed second, followed by electronics makers Canon Inc and Sony Corp, and then video-game maker Nintendo Co.

ELECTRONICS

Infineon raises targets

German semiconductor company Infineon yesterday raised its sales and profit margin targets for this year after posting a more than three-fold increase in net profit for the first quarter of its fiscal year. The company said it now expected sales to gain around 15 percent, compared with a previous forecast of 10 percent. The group’s 2010-2011 profit margin is estimated at close to 20 percent, up from the previous range of 15 percent to 20 percent. In the first three months of the year that began on Oct. 1, Infineon rang up 922 million euros (US$1.3 billion) in sales, a leap of 34 percent from the same period a year earlier. The group’s profit margin came to 19.2 percent.

TECHNOLOGY

Oracle settles lawsuit

Oracle Corp has agreed to pay US$46 million to settle a lawsuit over alleged kickbacks to win government work. The US Department of Justice charged that Sun Microsystems Inc, which Oracle bought last year, and other technology companies paid kickbacks to Accenture PLC for Accenture to recommend that federal agencies buy Sun products. The justice department said last year that the lawsuit covered software contracts that ran from 1998 to 2006 and were worth hundreds of millions of US dollars.

BANKING

Deutsche Bank expects drop

Germany’s leading Deutsche Bank expects net profit of about 600 million euros (US$822.99 million) in the fourth quarter, a nearly 54 percent drop from a year ago due to recent acquisitions and restructuring costs. The year before, Deutsche Bank had achieved net profit of 1.3 billion euros and Dow Jones Newswires analysts had agreed on an estimate of about 800 million euros for this year. Pre-tax profit for the fourth quarter was expected to be around 700 million euros, compared with 756 million a year earlier, the bank said late on Monday. Deutsche Bank publishes its annual results on Thursday.

BANKING

BOA cuts down on bonuses

Bank of America Corp (BOA) senior executives will not get cash bonuses for last year and chief executive Brian Moynihan will not receive a base salary increase this year, according to a securities filing on Monday. This year, Moynihan will have a base pay half as large as some of his chief rivals, with much of his compensation tied up in long-term awards. The head of the largest US bank by assets was paid US$950,000 in last year’s base salary. BOA’s board did increase the base pay for other senior executives. The salaries for chief financial officer Charles Noski, investment banking chief Thomas Montag and consumer bank head Joe Price will rise to US$850,000 this year from US$800,000.

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