■RETAIL
Burberry to take over stores
Burberry Group PLC, the UK’s largest luxury retailer, will take control of its franchised stores in China for £70 million (US$108 million) in a transaction that may boost earnings by almost 10 percent. The acquisition of stores and related assets from franchise partner Kwok Hang Holdings Ltd will add as much as £20 million to operating profit in the year through March 2012, the company said yesterday. Burberry aims to complete the transaction later this year. “With a solid foundation of 50 stores across 30 cities, operational expertise and strong brand momentum, this is an optimal time for Burberry to integrate this business,” chief executive officer Angela Ahrendts said in the statement.
■ENERGY
France open to MHI plan
France is open to a plan by Mitsubishi Heavy Industries (MHI) of Japan to take a stake in French nuclear giant Areva, French Prime Minister Francois Fillon said yesterday. Fillon supports the idea of “cooperation between Areva and Mitsubishi ... in particular on the new nuclear reactor Atmea,” a joint venture between the companies to develop and market a new reactor, Fillon said. “France is open to Mitsubishi taking shares in Areva,” he said in a joint statement with Japanese Prime Minister Naoto Kan. MHI has reportedly launched negotiations with the French government on its plan to take a 2 percent stake in Areva.
■COMMUNICATIONS
Sony Ericsson reports profit
Mobile phone maker Sony Ericsson yesterday reported a 12 million euro (US$15.5 million) net profit for the second quarter, up from a 213 million euro loss the year before, citing continued success from its focus on high-end devices such as smartphones. Revenues edged up 4 percent to 1.76 billion euros from 1.68 billion euros in the second quarter last year. For this year, the company said it forecasts a slight unit growth in the global handset market. The group said it shipped 11 million units in the quarter, up 5 percent from the first quarter, but a 20 percent drop from the same period last year because of a smaller production portfolio.
■STEEL
Posco seeks Brazil stake
Posco, the world’s third-biggest steelmaker, will seek to buy around 20 percent stake in Dongkuk Steel Mill Co’s slab venture in Brazil, the company said in an e-mailed statement yesterday. The company will also spend 194.7 billion won (US$162 million) to buy into an iron ore project in Western Australia, a separate statement showed. Posco will take a 24.5 percent stake in the Australian Premium Iron project, being developed by American Metal and Coal International Inc and Aquila Resources Ltd, the company said. The reserve in Pilbara may produce 40 million tonnes a year starting in 2014, it said.
■ELECTRONICS
AMD’s Q2 loss shrinks
Advanced Micro Devices (AMD) Inc shrank its second-quarter loss on reviving sales of computers that use its chips and a wrenching effort to shed costs that has lasted years. AMD’s net loss was US$43 million, or 6 cents per share, in the quarter ended June 26. Excluding items, AMD would have earned 11 cents per share. On that basis, analysts expected profit of 6 cents per share. Revenue was US$1.65 billion, an increase of 40 percent over last year. Analysts expected US$1.55 billion. The numbers come two days after AMD’s main rival, Intel Corp, reported the highest revenue and profit margins in the company’s 42-year history.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source