Toyota still on top
Toyota remains Japan’s No. 1 global brand, but its value has fallen by nearly a fifth because of the recent massive recalls that dented consumer trust in the quality of its cars, according to an international consultant. An Interbrand report released yesterday said that the value of the Toyota Motor Corp brand dropped 16 percent to US$25.66 billion compared with its last report released a year ago. Toyota’s Lexus luxury model nameplate, which placed seventh last year, dropped to eighth, losing 19 percent of its value, Interbrand said. Interbrand said Honda Motor Co placed second, followed by electronics makers Canon Inc and Sony Corp, and then video-game maker Nintendo Co.
Infineon raises targets
German semiconductor company Infineon yesterday raised its sales and profit margin targets for this year after posting a more than three-fold increase in net profit for the first quarter of its fiscal year. The company said it now expected sales to gain around 15 percent, compared with a previous forecast of 10 percent. The group’s 2010-2011 profit margin is estimated at close to 20 percent, up from the previous range of 15 percent to 20 percent. In the first three months of the year that began on Oct. 1, Infineon rang up 922 million euros (US$1.3 billion) in sales, a leap of 34 percent from the same period a year earlier. The group’s profit margin came to 19.2 percent.
Oracle settles lawsuit
Oracle Corp has agreed to pay US$46 million to settle a lawsuit over alleged kickbacks to win government work. The US Department of Justice charged that Sun Microsystems Inc, which Oracle bought last year, and other technology companies paid kickbacks to Accenture PLC for Accenture to recommend that federal agencies buy Sun products. The justice department said last year that the lawsuit covered software contracts that ran from 1998 to 2006 and were worth hundreds of millions of US dollars.
Deutsche Bank expects drop
Germany’s leading Deutsche Bank expects net profit of about 600 million euros (US$822.99 million) in the fourth quarter, a nearly 54 percent drop from a year ago due to recent acquisitions and restructuring costs. The year before, Deutsche Bank had achieved net profit of 1.3 billion euros and Dow Jones Newswires analysts had agreed on an estimate of about 800 million euros for this year. Pre-tax profit for the fourth quarter was expected to be around 700 million euros, compared with 756 million a year earlier, the bank said late on Monday. Deutsche Bank publishes its annual results on Thursday.
BOA cuts down on bonuses
Bank of America Corp (BOA) senior executives will not get cash bonuses for last year and chief executive Brian Moynihan will not receive a base salary increase this year, according to a securities filing on Monday. This year, Moynihan will have a base pay half as large as some of his chief rivals, with much of his compensation tied up in long-term awards. The head of the largest US bank by assets was paid US$950,000 in last year’s base salary. BOA’s board did increase the base pay for other senior executives. The salaries for chief financial officer Charles Noski, investment banking chief Thomas Montag and consumer bank head Joe Price will rise to US$850,000 this year from US$800,000.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable