Sat, Apr 27, 2019 - Page 10 News List

World Business Quick Take

Agencies

RESTAURANTS

Starbucks raises profit target

Starbucks Corp has raised its profit outlook for this year after better-than-expected results in its most recent quarter. The Seattle-based coffee company on Thursday said that it earned US$663.2 million, or US$0.53 per share, in its fiscal second quarter, up slightly from a year ago. Excluding one-time items, Starbucks earned US$0.60 per share. Sales at stores open at least a year rose 3 percent globally and revenue rose 4.5 percent to US$6.31 billion. The company now expects full-year earnings in the range of US$2.75 to US$2.79 per share, up from its previous guidance of US$2.68 to US$2.73. Starbucks expects same-store sales to grow 3 to 4 percent globally this year.

UNITED KINGDOM

Brexit effect worsening

The protracted process of Britain’s exit from the EU has caused side effects on the domestic economy to intensify, Goldman Sachs Group Inc said yesterday, pointing to dwindling company investment. Capital expenditure by businesses has been particularly subdued, the bank said, and strong employment figures mask a misallocation of UK company resources to labor rather than capital, which would ultimately hurt productivity. Goldman Sachs maintained its view that Britain is likely to leave the bloc with a modified version of the current withdrawal agreement. Next year could see a pickup in activity as uncertainty fades, the bank said, but “the persistence of the structural headwinds facing the UK economy is likely to take longer to address.”

TECHNOLOGY

Microsoft hits US$1tn mark

Microsoft Corp on Thursday hit the trillion-dollar value mark for the first time, becoming the third technology giant to reach the milestone. Shares of Microsoft rallied about 5 percent in early Wall Street trade after a robust earnings report a day earlier to lift the value briefly above US$1 trillion. The stock ended the day with a gain of 3.3 percent at US$129.15, translating to a market valuation of about US$990 billion. At its current levels, Microsoft is the world’s most valuable company, ahead of Apple Inc and Amazon.com Inc, which both topped US$1 trillion last year before slipping back.

AIRLINES

ANA, JAL profits soar

Japanese airlines All Nippon Airways (ANA) and Japan Airlines Co (JAL) yesterday said that soaring demand for international travel had boosted their bottom line as the country enjoys a tourism boom ahead of next year’s Olympics. ANA booked a record operating profit of ¥165 billion (US$1.5 billion), up 0.3 percent on the previous year, as sales grew more than 4 percent to ¥2.05 trillion. However, net profit fell 23 percent on a year-on-year basis. Rival JAL saw net profit rise 11.4 percent to ¥150.8 billion as demand for international flights expanded.

AUTOMOBILES

Daimler Q1 profit slides

Mercedes-Benz maker Daimler AG yesterday reported a sluggish start to the year, with first-quarter profit falling back compared with last year as a slew of problems hit its different divisions. Net profit at the group fell 9 percent year-on-year to 2.1 billion euros (US$2.4 billion), with executives pointing to slower vehicle sales, supply chain issues and costly outlays for research and development as the reasons for the slump. Operating profit dropped even more dramatically, losing 16 percent to 2.8 billion euros on almost flat revenue of 39.7 billion euros.

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