Thu, Apr 20, 2017 - Page 10 News List

World Business Quick Take

Agencies

LUXURY GOODS

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.

MATERIALS TESTING

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.

CHIPMAKERS

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.

JAPAN

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.

DISTILLER

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.

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