NAB to cut 1,400 UK jobs
National Australia Bank (NAB) said yesterday it planned to cut more than 1,400 jobs in the UK, as part of a US$305 million restructuring of its banking business there. The bank said the need for change at Clydesdale Bank was precipitated by a weakening economy and declining real estate prices in the UK, as well as higher funding costs. The bank said about 1,400 jobs would be eliminated by the end of the 2015 fiscal year. That includes 205 positions eliminated in the half-year to March. The bank expects to save ￡74 million (US$120 million) a year once the restructuring is finished.
NYSE Euronext profits fall
NYSE Euronext said its profits fell by almost a third in the first quarter of the year because of a difficult trading environment and costs from its failed merger with Deutsche Boerse. The New York exchange said profits were down 32 percent to US$121 million as revenue fell 17 percent to US$952 million in the first quarter. The exchange said it incurred US$31 million in merger and exit costs for the period, including US$16 million from the terminated merger with Deutsche Boerse.
AB InBev profits jump 75%
The world’s biggest brewer Anheuser-Busch InBev NV (AB InBev) said yesterday that first quarter net profit jumped 75 percent thanks to lower financing costs and taxes, as well as increased beer sales. Net profit rose to US$1.69 billion between January and March from US$964 million a year earlier, after a sharp drop in financing costs as well as declining taxes. AB InBev’s chief financial officer Filipe Dutra said the company was benefiting from growing profits in countries like Brazil, where the tax rate is lower than in Europe and the US. Meanwhile, revenue increased 3.7 percent to US$9.33 billion, as strong sales in Latin America and Asia offset falling sales in Europe.
Toyota to post year profit
Japanese car giant Toyota Motor will post a full-year operating profit of US$4.3 billion, nearly 30 percent above forecast, when it announces its earnings results next week, a report in the Nikkei Shimbun business daily said yesterday. The company will announce operating profit of ￥350 billion in the year to March 31, surpassing the ￥270 billion estimate it gave in February. It it will also target operating profit to surge to between ￥800 billion and ￥900 billion for the current fiscal year, which would be more than double on the year, the paper said.