■FINANCIAL SERVICES
CIT, Goldman set to do deal
CIT Group Inc, struggling to restructure billions in debt and stay out of bankruptcy court, could finalize a deal in the next 24 hours with Wall Street bank Goldman Sachs Group Inc over a disputed payment on a US$3 billion loan, a published report said. CIT has reached a tentative deal with Goldman, the Wall Street Journal reported online late on Thursday, citing unidentified people familiar with the matter. Under terms of the new deal, CIT would pay Goldman about US$300 million if it enters bankruptcy court, the paper said.
■AUTOMAKERS
Volvo cuts losses
The world’s second-biggest truck maker, Volvo Group, yesterday posted a lighter than expected third-quarter net loss and said the market was looking up, particularly in Asia, after several tough months. It reported a net loss of 2.92 billion kronor (US$429 million) for July to last month, down from profits of 2 million kronor in the corresponding period last year.
■AUTOMAKERS
Kia posts record profit
South Korea’s second-largest automaker Kia Motors yesterday announced a record quarterly net profit because of international incentives for new car buyers and a weaker won. Kia said in a statement it posted a net profit of 402 billion won (US$339 million) in July to last month, swinging from a net loss of 22.1 billion won a year earlier. Operating profit soared to 313.5 billion won from 53.7 billion won, while sales rose 32 percent to 4.509 trillion won from 3.427 trillion won a year earlier.
■AUTO PARTS
Bridgestone to close plants
Japanese tire maker Bridgestone said yesterday it would shed nearly 900 jobs in Australia and New Zealand as it closes manufacturing plants amid a worldwide slump in demand for cars. The company said it would shut its tire manufacturing facility in Adelaide in southern Australia by the end of next year and another plant in Christchurch, New Zealand, by the end of this year. “Regrettably, the closures will affect around 275 employees in Christchurch and 600 in Adelaide,” the company said in a statement.
■ELECTRONICS
Sanyo to report loss
Japan’s Sanyo Electric Co said yesterday that it had lost about US$400 million in the six months through last month because of a slump in sales during the global economic downturn. Sanyo said it expected to book a net loss of ¥37 billion (US$402 million) for the fiscal first half based on preliminary results, compared with a profit of ¥32.6 billion a year earlier. Revenue dropped to about ¥780 billion from ¥1.01 trillion. The company is due to publish its full interim results on Oct. 29.
■PHARMACEUTICALS
EU approves Merck deal
The EU has approved the tie-up of drugmakers Merck and Co and Schering-Plough Corp which makes the combined US company the second-biggest global producer of prescription medicines. The EU’s antitrust authorities said in a statement yesterday that the “transaction would not significantly impede effective competition” in Europe. The acquisition of smaller Schering-Plough will allow Merck to leapfrog to No. 2 worldwide in prescription medicine, just behind Pfizer Inc. The new company would have about US$42.4 billion in annual sales.
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