Fri, Aug 06, 2021 page10

• World Business Quick Take

  • Agencies
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  AIRLINES

  Lufthansa narrows losses

  Germany’s Lufthansa AG yesterday said that it further narrowed its losses in the second quarter and recorded its first positive cash flow since the start of the COVID-19 crisis, citing faster-than-planned cost cuts. The group — which also owns Eurowings GmbH, Swiss International Airlines AG, Brussels Airlines and Austrian Airlines — said that its adjusted operating loss narrowed to 952 million euros (US$1.13 billion), down 43 percent from a year earlier and lower than the 971 million euros forecast on average in a company-provided poll. Revenue came in at 3.2 billion euros, against a forecast of 3.3 billion euros. Lufthansa said that it continued to expect high demand for tourist destinations and recovery in business travel in the second half of the year.

  ADVERTISING

  WPP grows 11% in first half

  WPP PLC, the world’s biggest advertising company, said that underlying net sales jumped 19.3 percent in the second quarter, beating expectations and taking growth in the first half of the year to 11 percent, up from 2019, as clients ramped up spending in a COVID-19 recovery. Chief executive officer Mark Read said that the growth in the second quarter was its highest on record, as clients reinvested in marketing, particularly in digital media, e-commerce and technology. The performance meant that WPP returned to 2019 levels one year ahead of its forecasts.

  PHARMACEUTICALS

  Bayer to acquire Vividion

  Bayer AG has agreed to buy US biotech company Vividion Therapeutics Inc for as much as US$2 billion, snapping up a developer of promising therapies that only weeks ago filed for an initial public offering. The German drugmaker would pay US$1.5 billion up front and another US$500 million in potential milestones for the San Diego-based biotech, it said in a statement yesterday. The company also raised its profit forecast for the year as high commodity prices boosted its crops unit and medicines such as the eye treatment Eylea recovered as COVID-19 pandemic lockdowns ended.

  COMMODITIES

  Glencore to pay out US$1bn

  Glencore PLC is to pay out US$1.18 billion through dividends and share repurchases after surging metal prices helped drive first-half profit to a record. The world’s biggest commodities trader reported core earnings of US$8.65 billion for the period, up from US$4.83 billion a year earlier. The company said in a statement yesterday that it would pay US$530 million in dividends and buy back US$650 million in shares. Glencore said that its giant trading business reported profits of US$1.8 billion, almost on a par with the record US$2 billion that it reported last year, while its mines posted profits of US$6.6 billion.

  ENGINES

  Rolls-Royce eyes recovery

  British engine maker Rolls-Royce Holdings PLC said that it is on track to meet its forecasts for this year, as cost-cutting and disposal plans helped it weather the slow return of long-haul travel. It expects free cash outflow to improve to ￡2 billion (US$2.8 billion) and cash flow to turn positive in the second half of the year, but a slow aviation recovery is likely to affect its target for next year, the company said. During the first half of this year, the group was buoyed by its resilient defense arm, which makes engines for military jets and powers Britain’s nuclear submarines, plus a recovery in its power systems unit, which makes engines for boats, trains and other vehicles.
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