Olympus defends purchases
Olympus Corp’s new president says his company has done nothing wrong in past acquisitions, defending the purchases as strategic amid escalating scrutiny triggered by its recently fired CEO Michael Woodford. Shuichi Takayama stuck to the Japanese company’s denials but offered more details about the deals in question, including a US$687 million payment made to financial advisers as part of its purchase of the UK’s Gyrus Group PLC. Olympus confirmed for the first time the identities of the financial advisers as Axes America LLC and Axam Investments Ltd.
Daimler’s profit down
German automaker Daimler said yesterday that its net profit fell by 16 percent in the third quarter because of writedowns on its investments in French and Russian groups Renault and Kamaz. Daimler, which owns the flagship Mercedes-Benz brand, said in a statement its bottom-line profit fell to 1.36 billion euros (US$1.9 billion) in the period from July to September from 1.61 billion euros a year earlier. Underlying profits, as measured by earnings before interest and tax, dropped by 18.6 percent to 1.968 billion euros. Third-quarter sales, on the other hand, rose by 5.3 percent to 26.407 billion euros on a 10.6 percent increase in unit sales to 525,517 vehicles.
Bayer earnings shoot up
Bayer AG says its earnings more than doubled in the third quarter compared with a year-earlier figure that was weighed down by one-time charges. The pharmaceutical and chemical company said yesterday that its net profit for the July to September period was 642 million euros — a 125 percent increase over the previous year’s 285 million euros. Revenue was up 1 percent to 8.67 billion euro from 8.58 billion euros. Bayer said the increase was driven by sales in emerging markets.
BASF profit beats estimates
BASF SE, the world’s largest chemicals maker, reported third-quarter profit that beat analysts’ estimates as price increases and the purchase of cosmetic-ingredient maker Cognis helped limit a drop in margins. Earnings before interest, tax and items such as costs from acquisitions and restructuring fell 11 percent to 1.96 billion euros, BASF said yesterday in a statement. Analysts had predicted 1.85 billion euros, according to the average of 16 estimates compiled by Bloomberg.
Lufthansa’s profit plummets
German airline Lufthansa said yesterday that its bottom-line net profit declined by 21.3 percent to 494 million euros in the third quarter. Revenues in the period from July to September rose by 6.7 percent to 8.075 billion euros, Lufthansa said in a statement. Lufthansa already issued a profit warning last month, blaming a disappointing performance in August, deteriorating booking forecasts for the airline industry and wider economic uncertainty.
Shell profits double
Energy giant Royal Dutch Shell said yesterday that net profits doubled to US$6.98 billion between June and September as revenues rose by a third thanks to higher oil prices. The profit after tax figure for the third quarter compared with net income of US$3.46 billion during the equivalent period last year, the Anglo-Dutch group said in a statement. Group revenue jumped 36 percent to US$123.4 billion in the third quarter from a year earlier.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to