■MEXICO
Economy may shrink 4%
The economy will contract by 4 percent this year, largely because of the global recession and weak internal demand, private analysts said in a central bank report released on Monday. The previous bank survey of analysts, issued last month, had predicted a 3.3 percent contraction. Mexico’s economy grew by 1.3 percent last year. Monday’s figures do not account for the impact of the H1N1 virus scare. Authorities ordered most businesses closed to contain the spread of the virus, and trade and commercial flights have been disrupted. Treasury Secretary Agustin Carstens said the flu could cost the economy an additional 0.3 percent to 0.5 percent of GDP.
■MANAGEMENT
CFOs at top firms lose pay
Chief financial officers (CFOs) at more than 300 companies in Standard and Poor’s 500 Index took a median compensation cut of 4 percent last year as cash bonuses plunged, a study showed. The total compensation of the finance directors dropped to US$2.73 million from US$2.84 million the previous year, according to Equilar Inc. Base salaries increased 6.6 percent, while cash bonuses slid 22.6 percent and incentive plan payouts linked to company performance fell 18.4 percent, the study showed. The CFOs had to have held the job for at least two years to participate in the survey.
■RETAIL
Adidas profits plunge
German sports equipment and clothing maker Adidas yesterday posted a 97 percent drop in first-quarter net profit to 5 million euros (US$6.7 million). A company statement also said sales had fallen by a much more modest 2 percent to 2.58 billion euros in the first three months of the year. Company chairman and chief executive Herbert Hainer said the group’s results had been “materially affected by higher input prices, currency devaluation effects and restructuring costs.” Adidas also announced a major restructuring of its operations that would include the elimination of regional headquarters in Europe and Asia. Employee reductions were planned at the group’s Reebok, Rockport and TaylorMade-Adidas Golf divisions, the statement said. Looking ahead, it said Adidas’ operating margin was expected to decline, but earnings per share would “be around break-even in the first six months of 2009” before getting well back into the black later this year.
■RETAIL
Metro reports quarterly loss
Giant German retailer Metro AG reported widening quarterly losses yesterday as the global recession hit consumer demand. Metro, which has a global business empire said its net loss in the first three months of the year widened to 100 million euros from 15 million euros in the same period last year. But Germany’s biggest retailer also pointed to signs of improvement in business conditions, saying it had experienced a “positive development of business” last month. The company said first first-quarter sales dropped 2.5 percent to 15.2 billion euros.
■FINANCE
Resignation boosts RBS
Royal Bank of Scotland Group Plc (RBS) shares rose as much as 17 percent yesterday, or £0.074, to £0.514 in London trading after the company said that Guy Whittaker, its finance director, would step down from the board, leaving the company by the end of the year.
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