Thu, May 10, 2018 - Page 10 News List

World Business Quick Take



DT raises earnings forecast

Deutsche Telekom AG (DT) yesterday lifted its earnings forecast for this year as it presented first-quarter results, saying that fast growth, especially in US arm T-Mobile US Inc, would juice its operating income. Net profit at the firm from January to March increased 32.8 percent year-on-year to 992 million euros (US$1.2 billion). The group reported falling revenue, down 3.9 percent at 17.9 billion euros, as currency headwinds from a strong euro clouded the growth picture. Operating profit also fell 11.6 percent to 5.3 billion euros.


Softbank profit tops forecast

Softbank Group Corp’s fourth-quarter profit topped analysts’ projections, thanks to Sprint Corp’s first annual net income in more than a decade. The US wireless subsidiary is planning to merge with rival T-Mobile. The Japanese telecommunications provider and technology investor said operating profit reached ¥155 billion (US$1.4 billion) in the three months ended March, more than the ¥137.4 billion average of analyst estimates compiled by Bloomberg. Revenue was ¥2.35 trillion. The results are overshadowed by the sale of Sprint, a deal that SoftBank founder Masayoshi Son had pursued for years. T-Mobile last month agreed to acquire the smaller rival for US$26.5 billion in stock, but the merger is likely to face heavy scrutiny from regulators.


Tyson, Cargill eye Keystone

Tyson Foods Inc and Cargill Inc have expressed interest in an acquisition of Keystone Foods LLC, the US supplier of chicken nuggets to McDonald’s Corp, according to people with direct knowledge of the matter. Marfrig Global Foods SA, Brazil’s second-largest beef producer, plans to sell Keystone and raise more than US$3 billion, said the people, who asked not to be named. An agreement on the transaction might be reached in the next few weeks, one of the people said. Marfrig, Tyson and Cargill declined to comment about the deal. Keystone has operations not only in the US, but also in South Korea, China, Malaysia, Thailand and Australia.


Retail clients buoy ING profit

ING Groep NV relied on lending to new retail clients outside its home market to post a better-than-expected profit in the first quarter, offsetting an unexpected decline in commission income. Net income rose 7.2 percent from a year earlier to 1.23 billion euros, beating the 1.11 billion euros analysts polled by the lender had expected. ING added 400,000 new clients in the period, mainly in Germany and Australia, but a 3.1 percent drop in net commission income overshadowed that growth.


Vancouver luxury prices fall

The party is over for now for those sitting on Vancouver’s most expensive properties. Prices at the top end of the market plunged 7.6 percent in the six months to March, making it the world’s second-worst performer in that period, a Knight Frank LLP global survey of prime properties showed. The findings — based on the top 5 percent of the housing market in each city — lend support to anecdotal evidence of a slowdown in Vancouver’s luxury segment after the hike of a tax on foreign buyers from 15 percent to 20 percent in February, the introduction of a speculation tax and rising interest rates. Vancouver Mayor Gregor Robertson called the decline “a necessary step” to restoring stability in the local housing market.

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