Thu, Feb 04, 2016 page15

• World Business Quick Take

  • Agencies
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  AUTOMAKERS

  Toyota supplier issues alert

  The supplier behind Toyota Motor Corp’s shutdown of all its Japanese assembly plants for at least one week withdrew its earnings forecasts, as another one of the carmaker’s group of companies warned of a bigger disruption than the nation’s 2011 earthquake. Aichi Steel Corp said the Jan. 8 blast at its Chita plant, which supplies specialty steel for engine, transmission and chassis components, might reduce pre-tax profit by about ￥8 billion (US$67 million) this fiscal year. Toyota earlier this week said it was halting all assembly lines from Monday next week through Feb. 13.

  WATCHMAKERS

  Swatch earnings decline

  Swatch Group Ltd, the maker of Tissot and Omega timepieces, reported earnings declines last year because sales fell for the first time in six years, hurt by slumping demand in Hong Kong and the strength of the Swiss franc. Operating profit declined 17 percent to SF1.45 billion (US$1.43 billion), the Biel, Switzerland-based company said in a statement yesterday. The outlook for the Swiss watch industry has soured after Chinese economic growth slowed to the weakest pace in more than two decades and as stock markets and oil prices tumbled. Swatch forecast a sales increase of “well over” 5 percent in local currencies this year, supported by a rebound of demand in China and growth last month.

  HOTELS

  Minor forecasts record profit

  Minor International PLC, which just completed the purchase of a Portuguese hotel chain, expects a record first-quarter profit, bolstered by a strong flow of visitors to countries where it has a presence, chief operating officer Dillip Rajakarier said. The Bangkok-based company plans to add new hotels to its existing 145 properties spread across 22 countries through organic growth and acquisitions, according to Rajakarier. On Tuesday, it finalized the acquisition of Tivoli Hotels & Resorts’ 14 hotels in Portugal and Brazil for 294 million euros (US$321 million).

  BANKING

  Barclays cutting staff: source

  Barclays PLC is to dismiss an extra 150 staff in Dubai as it restructures its Middle East corporate banking business, a person with knowledge of the matter said. The bank is to close its offices at Emaar Square and relocate bankers and support staff to its office at Dubai International Financial Centre, the person said, asking not to be identified as the dismissals are not public. Barclays is to keep its corporate branch in Abu Dhabi and wholesale banking license with UAE Central Bank, the person said. Barclays plans to eliminate 1,200 jobs worldwide and shut securities operations across Asia.

  PHARMACEUTICALS

  Novo Nordisk sees sales fall

  Novo Nordisk AS, the world’s largest maker of insulin, reported poor fourth-quarter earnings as sales of its key diabetes drug Victoza rose less than expected. Profit rose to 8.26 billion kroner (US$1.21 billion), the Bagsvaerd, Denmark-based company said in a statement. A slowdown in the US, where a new generation of drugs that can be swallowed rather than injected is delaying the need for insulin, and a challenge for the six-year-old injection Victoza damped earnings. Victoza, injected daily to mimic the activity of a hormone called GLP-1 that stimulates insulin production, showed the first signs of suffering from the introduction of a rival product called Trulicity by Eli Lilly & Co that only requires a weekly injection.
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