ELECTRONICS
Samsung-Apple war spreads
South Korea’s Samsung Electronics said yesterday it would seek a ban in France and Italy on sales of Apple’s newly released iPhone, in the latest round of its legal battle with the US technology giant. A spokesman for Samsung warned that it was “virtually going into an all-out war” with Apple as the two computer giants continue to row over copyright infringements. Samsung said in a separate statement it would file preliminary injunctions in the two countries to ban sales of the iPhone 4S, citing what it called two patent infringements regarding mobile technology. The company said it would also file preliminary injunctions in other countries “after further review.”
AUTOMAKERS
Honda to cut Japan exports
Honda Motor intends to slash its exports from Japan by about half over the next decade as it looks to cope with a high yen, its president said in an interview published yesterday. He added the Japanese automaker would focus on smaller vehicles at home in order to boost domestic sales in the near term. “Battered by such appreciation of the yen, the company sees clearly that Japan can no longer be the world center of its production and exports,” Honda president Takanobu Ito told the Asahi Shimbun newspaper. “Honda currently exports 30-40 percent of its domestic production, but it is hard to sell overseas while fretting over currency movements,” he said.
RETAIL
Tesco reports profit increase
Tesco PLC, the world’s third-largest retailer, reported a 16 percent increase in net profit for the half year ending Aug. 27 despite a drop in sales in its main British market. Tesco yesterday reported a net profit of ￡1.38 billion (US$2.13 billion) for the period, up from ￡1.18 billion a year earlier. Revenue rose 7.8 percent to ￡31.8 billion pounds. Sales excluding gasoline and sales tax fell half a percent in Britain, reflecting a broader retrenchment in consumer spending. Tesco recently launched a “Price Drop” campaign to shore up its dominant market share in Britain of around 30 percent.
FOOD
Yum Brands posts strong Q3
KFC parent Yum Brands Inc reported a quarterly profit that met Wall Street’s expectations, helped by another quarter of strong sales in China. China — the world’s fastest-growing major economy — is Yum’s biggest earnings driver, accounting for just more than 40 percent of overall profits. Yum’s third-quarter net income rose to US$383 million, or US$0.80 per share, from US$357 million, or US$0.74 per share, a year earlier. Excluding special items, Yum’s profit was US$0.83 per share, matching analysts’ average estimate, according to Thomson Reuters I/B/E/S. Revenue rose to US$3.27 billion from US$2.86 billion a year earlier.
COMMODITIES
Nickel Asia resumes mining
The Philippines’ top nickel producer, Nickel Asia Corp, has resumed operations at its biggest nickel mine, Taganito, in Surigao del Norte province, after a raid by rebels early this week and expects to ship ore in the next three weeks, its chief said yesterday. Nickel Asia, partly owned by Japan’s Sumitomo Metal Mining Corp, said it does not expect a big reduction in shipment tonnage this year, adding it has started buying new equipment to replace damaged machinery. However, the company cannot determine yet if there would be delays in the 2013 target to complete a new US$1.4 billion nickel processing plant adjacent to the mine.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
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