Credit Suisse cutting costs
Credit Suisse Group AG announced measures to cut costs and boost capital by 8.7 billion Swiss francs (US$8.9 billion) after a central bank report last month called for an increase in equity. The bank’s cost savings target is increased to SF3 billion from SF2 billion, Credit Suisse said yesterday in an e-mailed statement. Net income for the second quarter rose to SF788 million from SF768 million a year earlier, the Zurich-based bank said. The Swiss government, the Swiss National Bank and the market regulator are stepping up efforts to make the country’s biggest banks prepared in the event that the European debt crisis worsens. The SNB last month singled out Credit Suisse as needing a bigger capital boost than larger rival UBS AG.
ASML’s net profits drop
ASML Holding NV, the largest supplier of manufacturing equipment to computer chip makers, says its net profit fell to 292 million euros (US$359 million) in the second quarter from 432 million euros in the same period a year ago. The company announced yesterday that its sales for the quarter dropped to 1.2 billion euros from 1.5 billion euros in the second quarter of last year. President and chief executive Eric Meurice says he expects sales to remain steady in the second half of the year at 2.2 billion to 2.4 billion euros.
Ericsson’s Q2 profits plunge
Swedish wireless equipment maker LM Ericsson says second-quarter net profits plunged to almost a third as sales fell in its network unit, leading to squeezed margins. Yesterday’s report showed a net profit of 1.1 billion kronor (US$156 million), down from the 3.1 billion kronor reported in the same period a year ago. The Stockholm-based company blamed the drop on a shift in its sales pattern, where the Networks unit contributed significantly less to its total sales and its Global Services unit made up for more — translating into margin pressure. Revenues in the quarter came to 55.32 million kronor, up from 54.77 kronor.
Puma cuts earnings forecast
German sportswear giant Puma yesterday cut its earnings forecast for this year after profits in the first six months fell as a result of slowing sales in Europe. “Despite continuous sales growth throughout the first half of 2012, consolidated pre-tax and net earnings [for the six months to June] will come in approximately 11 percent and 13 percent below those for the first half year of 2011,” Puma said in a statement. The company was therefore revising its previous guidance for this year’s net sales growth “from a high-single digit to a mid-single digit rate” and expects annual net earnings to “decrease significantly from the 230.1 million euros posted last year,” the statement added.
Dell launches new fund
The chief of US computer maker Dell on Tuesday announced the launch of a US$60 million fund focused on investing in technology for storing the massive amounts of data being collected by businesses. “We really believe in this explosion of data driven a lot by smartphones and tablets,” Michael Dell, founder of the Texas-based company, said at a Fortune Brainstorm Tech conference in Aspen, Colorado. Dell saw “huge opportunity” for technologies and startups that help businesses store and make smart use of data being gathered in a world of mobile devices and applications hosted on servers in the Internet “cloud.”