Wed, Apr 19, 2017 - Page 10 News List

World Business Quick Take



Boeing to cut more jobs

Boeing plans to cut hundreds of additional jobs in its civil aviation business due to slowing sales, a spokesman said on Monday. “In an ongoing effort to increase overall competitiveness and invest in our future, we are reducing costs and matching employment levels to business and market requirements,” Boeing spokesman Doug Alder said. The downsizing is to come through a mix of “attrition, leaving open positions unfilled, a voluntary layoff program and in some cases, involuntary layoffs,” he added. The cuts are to take effect on June 23, and primarily affect production sites in Washington state, a person familiar with the situation said. Boeing is the biggest private employer in the state, with more than 70,000 workers. At the start of the year, Boeing eliminated 305 engineering jobs and cut 1,500 mechanics as part of a voluntary programs. Boeing plans additional job cuts later this year, a person close to the matter said. Boeing has 146,962 employees, down 7.6 percent from last year.


Treasury bill rates fall

Interest rates on short-term Treasury bills fell slightly in Monday’s auction. The Department of the Treasury auctioned US$39 billion in three-month bills at a discount rate of 0.820 percent, down from 0.825 percent last week. Another US$33 billion in six-month bills was auctioned at a discount rate of 0.945 percent, down from 0.950 percent last week. The rates last week were the highest in more than eight years. The discount rates reflect that the bills sell for less than face value. For a US$10,000 bill, the three-month price was US$9,979.27, while a six-month bill sold for US$9,952.23. That would equal an annualized rate of 0.833 percent for the three-month bills and 0.963 percent for the six-month bills. Separately, the Federal Reserve on Monday said that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, fell to 1.03 percent on Thursday from 1.07 percent on Monday last week.


VolkerWessels seeks listing

Dutch construction company VolkerWessels yesterday said it would seek an initial public offering (IPO) of shares and a stock market listing on the Euronext exchange in Amsterdam. The company is owned by Reggeborgh Holding, which said it would sell a minority stake of a yet-to-be-determined size in the IPO. VolkerWessels had earnings before interest, taxes, depreciation and amortisation of 254 million euros (US$270.5 million) last year and sales of 5.5 billion euros, it said.


Kleinfeld steps down

Arconic Inc chief executive Klaus Kleinfeld, who oversaw the company’s split from former parent Alcoa, yesterday stepped down after the aluminum-parts maker’s board said he showed “poor judgment” in sending a letter to Elliott Management Corp amid a proxy fight. Kleinfeld’s resignation upends what had been shaping up as the biggest and most aggressive US proxy battle this year. Shares of the supplier for aircraft and automobiles surged the most in two months. Until Monday, Arconic’s board had stuck by Kleinfeld as Elliott, billionaire Paul Singer’s hedge fund, accused him of financial underperformance, an “obsession” with image and wasteful spending on a Manhattan, New York headquarters.

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