Burberry’s sales fall short
Luxury retailer Burberry Group PLC’s quarterly sales missed analysts’ estimates as a decline in the Americas countered gains in China. Retail revenue in the fourth quarter of last year rose 2 percent on a comparable basis, the London-based company said yesterday, less than the 5 percent increase predicted in a Bloomberg survey. Sales in the Americas showed a mid single-digit percentage decline in the second half of last year. “The relative strength of the US dollar drove a strong increase in sales from US customers abroad, while demand at home reduced,” Burberry said of its performance in the Americas.
Exova announces its sale
UK-based materials testing company Exova Group yesterday said Dutch firm Element Materials Technology is to buy it in a deal valued at ￡620.3 million (US$795.84 million). Element said it would pay Exova shareholders ￡2.40 per share in cash, representing a 10.7 percent premium to the stock’s closing price on March 24 before Exova entered talks with potential buyers. Exova, whose laboratories test the safety and performance of products used in industries ranging from aerospace to pharmaceuticals, last month said that it had received proposals for a possible cash offer from Element Materials Technology.
ASML’s Q1 profits surge
Dutch computer chipmaker and global high-tech bellwether ASML yesterday said that sales and profits soared in the first quarter amid “strong demand” across the sector. Net sales in the first quarter were stronger than expected, jumping 46 percent to 1.94 billion euros (US$2.08 billion). Net income also more than doubled, leaping to 452 million euros from 198 million in the first quarter of last year. “A positive industry environment provided a strong start to 2017 and healthy demand is expected to continue throughout the rest of the year,” ASML president Peter Wennink said in a statement.
Ten-year yield falls to 0%
The nation’s benchmark 10-year yield yesterday fell to 0 percent for the first time since November last year as US Treasury yields plunged on weak economic data, while lingering tensions over North Korea and uncertainty over the French presidential election keep haven demand intact. The 10-year Treasury yield fell eight basis points on Tuesday to a five-month low of 2.17 percent. The Bank of Japan aims to keep 10-year yield about 0 percent under its yield curve control policy to bolster momentum for economic recovery.
Remy’s Q4 sales disappoint
French distiller Remy Cointreau SA reported fourth quarter last year sales that disappointed analysts as sales of liqueurs and spirits declined after the company phases out lower-price offerings. Organic sales growth was 0.9 percent, while the company-compiled consensus was for a 1.7 percent increase. The stock fell as much as 6.1 percent in early Paris trading yesterday. Revenue ebbed after two quarters of faster growth. Sales of liqueurs and spirits declined 7.7 percent, more than double the decline analysts expected. The business weakened as Remy Cointreau decided to focus on higher-end spirits and reduce volumes of Mount Gay rum and St-Remy brandy.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to