Wed, Jun 20, 2018 page10

• World Business Quick Take

  • Agencies
  • • 
    • 
    • 

  RETAIL

  Debenhams cuts forecast

  British department-store owner Debenhams PLC yesterday cut its full-year profit forecast as sales worsened last month and this month amid discounting from competitors in a tough UK retail climate. The company now expects pretax profit of ￡35 million to ￡40 million (US$46.11 million to US$52.7 million), compared with a market consensus of ￡50.3 million, Debenhams said in a statement. The move follows a series of retail insolvencies and store-closings on the UK’s shopping streets. “It is well-documented that these are exceptionally difficult times in UK retail, and our trading performance in this quarter reflects that,” chief executive officer Sergio Bucher said. “We don’t see these conditions changing in the near future.” To strengthen its balance sheet, the company said it plans a material reduction in capital expenditure in the next fiscal year.

  FOOD MAKERS

  Kraft Heinz mulls brand sale

  Kraft Heinz Co is considering a sale of children’s milk drink brand Complan in India, which could fetch about US$1 billion, people familiar with the matter said. Kraft Heinz is working with an adviser to gauge interest in the business, said the people, who asked not to be identified. The brand could attract local companies and private equity firms, the people said. Consumer acquisitions in India have more than doubled this year to US$7.7 billion, up from US$3.4 billion during the same period last year, data compiled by Bloomberg show. Kraft Heinz is bringing Complan to market as UK pharmaceutical firm GlaxoSmithKline PLC weighs selling its stake in its Indian consumer health subsidiary, which owns malted milk drinks brand Horlicks. Foreign companies selling health drinks are facing more intense competition as new local rivals enter the market, said Arun Kejriwal, founder of Kejriwal Research & Investment Services Pvt in Mumbai.

  UTILITIES

  Moody’s glum on US utilities

  Moody’s Investors Service has cut its outlook for US utilities to negative, saying that the sector’s debt levels have reached their highest since the financial crisis and might remain there for months. The sector’s consolidated debt-to-equity ratio has hit the highest level since 2008 as companies finance mergers, acquisitions and other investments in renewable energy and pipelines, Moody’s analysts led by Ryan Wobbrock said on Monday. The federal tax overhaul signed by US President Donald Trump stands to make matters worse, since utilities that depend on regulated returns are collecting less cash from customers to cover their tax expenses, the ratings firm said. The downgrade underscores how a massive buying spree and rising dividends have affected the industry’s debt levels. Power companies have been turning to mergers and acquisitions to fuel growth as demand for electricity weakens, and the costs of maintaining their infrastructure rise.

  COMMUNICATION

  EchoStar might sweeten bid

  EchoStar Corp is considering raising its offer for rival Inmarsat PLC after its initial approach for the British satellite company was rejected as being too low, people familiar with the matter said. EchoStar, founded by billionaire Charlie Ergen, is discussing financing for an improved offer in the coming days, said the people. Inmarsat has a market value of about US$3.3 billion, while EchoStar is worth about US$4.4 billion.
• Most Popular

  • 1

    Mbappe lifts Madrid past Osasuna in La Liga opener

  • 2

    Eight Taiwanese restaurants win first Michelin stars

  • 3

    US eyeing TSMC stake, minister says

  • 4

    Taiwan troops joined military exercise in US

  • 5

    TSMC Arizona posts first profit since launch