Nissan Q1 profit falls
Nissan yesterday said its first-quarter net profit fell 15 percent to ￥72.3 billion (US$927 million) owing to the strong yen and higher costs. However, Japan’s second-biggest automaker said its outlook for the full-year to March remains unchanged, forecasting net profit of ￥400 billion on sales of ￥10.3 trillion. For the April-to-June quarter, Nissan said it booked an operating profit of ￥120.7 billion, down 19.7 percent from a year earlier, on sales of ￥2.14 trillion, which were up 2.6 percent on year.
Alcatel-Lucent to cut 5,000
Alcatel-Lucent says it will slash millions of euros from its costs and cut 5,000 jobs after it posted a net loss for the second quarter of 254 million euros (US$308 million). The Franco-American telecommunications equipment maker unveiled a restructuring plan yesterday that it said would take 1.25 billion euros off its bottom line by next year. The company reported revenue of 3.5 billion euros for April to June, down 7.1 percent from the same period last year. Alcatel warned last week that it would miss its earnings estimates for this quarter and the year.
Government subpoenas bank
Britain’s Lloyds Banking Group said some parts of its business had received subpoenas from governments under an investigation into a global interest rate rigging scandal that has rocked the banking industry. The group also said its underlying profit increased by ￡715 million (US$1.107 billion) to ￡1.064 billion in the first half, ahead of the consensus forecast of ￡1.03 billion, and that it had set aside another ￡700 million to compensate customers for the misselling of insurance products.
Puma speeds reorganization
Puma SE, Europe’s second-largest sporting-goods maker, said it will accelerate a reorganization after second-quarter net income fell 29 percent to 26.7 million euros from 37.6 million euros a year earlier. Sales rose 12 percent to 752.9 million euros, the German company said yesterday in a statement. The company reduced its forecast for net sales growth to a “mid-single-digit” percentage from an earlier prediction of a high single-digit gain. The extended reorganization program will result in as much as 100 million euros in one-time costs, Puma said.
Firm hives off non-core units
United Technologies says it is selling three industrial-products businesses to private equity firms BC Partners and The Carlyle Group for US$3.46 billion. Proceeds from the sale will be used to repay some of the short-term debt needed to finance its proposed US$16.5 billion acquisition of aerospace parts maker Goodrich Corp. The sale of Milton Roy Co, Sullair Corp and Sundyne Corp is subject to regulatory approval and the deal is expected to close by the end of the year.
Confidence holding up
The nation’s consumer confidence is holding up despite growing concerns that Europe’s top economy will be hit by the debt crisis, a poll found yesterday. Market research company GfK said its household confidence index was forecast to edge slightly higher to 5.9 points next month from 5.8 points for this month, a statement said. On Wednesday, business confidence dropped for the third consecutive month this month in an Ifo survey.