Print

Mail

wiki links

World Business Quick Take

■ Automobiles
Foreign cars more popular
US consumers are buying more foreign than domestic cars so far this year, according to a survey by research firm RL Polk. The survey showed General Motors, Ford and the Chrysler Group of DaimlerChrysler captured just 47.1 percent of the US retail market in the first five months of the year, with imports accounting for 52.9 percent. The Polk data showed GM still holding the top position with sales of 1.17 million vehicles in the five-month period. followed by Toyota with 931,000, Ford with 768,000, Chrysler Group with 618,000 and Honda with 604,000.

■ Export
China to hit landmark
China is set to overtake Japan this year as the US' third-largest export market, a US trade official said yesterday. US exports to China grew 36.5 percent in the first five months of the year over the same period last year, Under Secretary for International Trade Franklin Lavin told reporters during a visit to China's business hub of Shanghai. "My prediction is, by the end of this year, China will be the US' third-largest export market, surpassing Japan, if this trend continues," Lavin said. US exports to China last year totaled US$41 billion, an increase of 25 percent from 2004.

■ Automobiles
Honda earns record profit
Honda Motor Co said yesterday that it achieved a record profit in the first quarter as a weaker yen and higher sales of fuel-efficient, compact cars caused sales to rise and earnings to jump 30 percent. Net profit at Japan's third-largest automaker rose to ¥143.4 billion (US$1.23 billion) in the April-to-June quarter as its sales soared 14.8 percent over the same quarter a year ago to ¥2.6 trillion, the company said. Its operating profit, which measures earnings before the deduction of interest payments and income taxes, rose 19.4 percent to ¥203.52 billion, it said.

■ Steel
Takeover progress released
Mittal Steel, the world's biggest steel producer, announced yesterday that it controls 91.88 percent of European steel maker Arcelor following its 25 billion euro (US$31.5 billion) takeover bid. "I am delighted at this result which is a resounding endorsement of the strategic logic and value of the merger of Mittal Steel and Arcelor, a truly industry transforming deal," Mittal chairman Lakshmi Mittal said in a statement received by media in London. Mittal Steel updated the market after announcing on July 18 that it had acquired at least 50 percent of the shares in the world's number two steelmaker Arcelor, the minimum required for its takeover bid to succeed.

■ Computers
HP buys Mercury
Hewlett-Packard Co on Tuesday announced a US$4.5 billion cash deal to buy Mercury Interactive Corp, a maker of business software. "This is a market-changing event," Mercury chief executive Tony Zingale said in a telephone conference. "The technologies fit together like a glove, and the portfolio is unmatched in the marketplace." Provided the acquisition clears regulatory hurdles as expected, the purchase should be completed by the year end, said HP vice president Thomas Hogan. HP will pay US$52 per share for Mercury, which is located in Mountain View, California. HP predicted that the acquisition would increase revenues by 10 to 15 percent and its operating margin by an estimated 20 percent in fiscal year 2008.

This story has been viewed 1116 times.