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World Business Quick Take

■OIL

OPEC chief likes prices

Some US$75 to US$80 a barrel is a satisfactory price for oil, OPEC president Jose Maria Botelho de Vasconcelos told reporters in Abu Dhabi yesterday. “US$75 to US$80 a barrel is a good price ... for the recovery of the world economy,” De Vasconcelos, who is also Angola’s oil minister, told reporters on the sidelines of a conference on Gulf energy security. The rate of compliance by OPEC members with their production quotas “is around 65 percent,” he said, adding that this rate is satisfactory. OPEC members will review production quotas during a meeting in Luanda on Dec. 22.



■AVIATION

EADS posts big Q3 loss

The parent company of planemaker Airbus says it lost 87 million euros (US$130 million) in the third quarter as the weak dollar ate into revenues. European Aeronautic Defense and Space Co (EADS) warned yesterday that charges to its troubled A400M military transport airplane and its A380 superjumbo programs could hurt earnings in the fourth quarter. EADS said it is unable to give a full year forecast for earnings before interest and tax (EBIT) — the measure that analysts watch most closely — because of “ongoing uncertainties on the magnitude of the potential A400M and A380 charges.” The third quarter loss compares to a 679 million euro profit a year earlier. EBIT in the July to September period fell 77 percent to 201 million euros. Revenue was down 2 percent at 9.5 billion euros.



■AVIATION

Rolls-Royce wins orders

British plane engine maker Rolls-Royce said yesterday it had secured orders worth US$2 billion from Air China (中國國際航空) and Ethiopian Airlines. Air China is spending US$1.5 billion for Trent 700 engines for its 20 A330 long-haul jets. Ethiopian Airlines is spending US$480 million on Trent XWB for Airbus A350 planes on order, the company said.



■AVIATION

GE unit teams up with AVIC

General Electric’s GE Aviation Systems unit is teaming with China’s Aviation Industry Corp of China (AVIC, 中國航空工業) to develop and market electronic systems for commercial aircraft customers, including the C919 narrow-body aircraft that China hopes will compete with jets made by industry giants Boeing and Airbus. The goal is to launch the new China-based company by the middle of next year, subject to regulatory approvals. GE Aviation provides jet engines, parts and systems for current commercial and military aircraft, and the AVIC joint venture will offer electronics and services for future commercial aircraft programs. GE has more than 12,000 employees currently based in China. Financial terms of the partnership were not disclosed. The deal will create 200 jobs in the US, said Lorraine Bolsinger, president and CEO of GE Aviation Systems, in announcing the venture in Beijing on Sunday.



■ELECTRONICS

Hitachi to seek funding

Hitachi Ltd, reeling from massive losses, said yesterday that it planned to raise ¥415.7 billion (US$4.6 billion) from investors to shore up its shaky finances. Hitachi aims to drum up the cash by selling convertible bonds and new shares. It has been hit hard by the global economic downturn. It is restructuring with measures including 7,000 job cuts, after losing ¥787.3 billion in the year to March — the biggest ever loss for a Japanese manufacturer. Other cash-strapped Japanese firms are also going cap in hand to investors to bolster their capital, including electronics giant NEC.


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