Home » Archive for April, 2013

Electronics Giant Best Buy Pulls Out of Europe

Troubled electronics retailer Best Buy has decided to pull the plug on Europe. After only five years in Europe, the company will sell its stake in its joint venture with Carphone Warehouse for close to $775 million in stock and cash. Best Buy, which has had to battle its loss of sales to retailers online like Amazon, announced the move would help to simplify its business moving forward and improve the return on capital for the group, strengthening the company balance sheet. Best Buy said it would report the results from the joint venture in its... 
 

Chrysler’s Quarterly Earnings Plunge due to Model Changes

Chrysler Groups announced its earnings for the first quarter were $166 million, which was down over 65%. Revenue was $15.4 billion, which was down 6%. Chrysler announced that the first quarter was affected negatively by reduced shipments of vehicles that were a result of launches of the Ram trucks for 2013 and the Jeep Grand Cherokee for 2014, along with preparations for the launch in the second quarter of the Jeep Cherokee for 2014. The changeover work for models caused the shipments to be cut into, affecting sales. However, the results for Chrysler... 
 

Has Novartis Infringe on its Corporate Integrity Agreement?

The US Department of Justice filed two lawsuits in the span of one week against Novartis for alleged paid kickbacks to improve prescriptions and caused federal healthcare programs to pay for medicines based on false claims. A complaint filed seeks damages and other civil penalties for corrupting the dispensing process with incentive programs worth several millions of dollars that were aims at doctors. The Department of Justice also claimed that Novartis gave kickbacks in form of rebates and discounts to pharmacies in exchange for switching transplant... 
 

Profits up, Revenue down for Burger King

Burger King Worldwide on Friday announced that its first quarter profit more than doubled because of less expenses, which helped to offset negative sales in their same-stores and revenue that was lower. The company went public back in June of 2012 after it was acquired by 3G Capital a Brazilian private equity company in October of 2010. Since last June, Burger King has been making changes to its menu to help it better compete with its biggest rival McDonald’s. Burger King’s first quarter profit was $35.8 million or $0.10 per share compared to... 
 

Economy Grows During First Quarter but Misses Expectations

The U.S. economy continued its sluggish recovery during the first three months of 2013. Spending cuts by the federal government and a slowdown in business investments thwarted any hope the economy would have stronger growth during the year’s first quarter. The U.S. economy grew during the first three months by a yearly rate of 2.5%, said data released on Friday by the U.S. Department of Commerce. The growth was a significant increase over the growth rate during the last quarter of 2012, which was just 0.4%, when deep defense budget cuts and less... 
 

Earnings for Southwest Exceed Wall Street Expectations

Southwest Airlines earned more during the first quarter than what analysts from Wall Street had estimated, but officials from the airline said the federal budget cuts could hurt revenue for the airline going forward. An airfare increase helped the airline, as its one-way fares are now averaging over $150 dollars, which is a 4% increase from last year. Southwest also released details about is operation in Atlanta, where it is currently competing against Delta Airlines. Prior to acquiring AirTran Airways in 2011, Southwest did not use Atlanta to fly... 
 

Sprint Loses Subscribers put posts Numbers Better than Estimates

The third largest wireless carrier in the United States, Sprint Nextel Corp reported a narrower first quarter loss than was expected. This came even though Sprint lost over 560,000 contract subscribers. The loss was $0.21 cents per share for the quarter for the Overland Park, Kansas based wireless giant. Wall Street predicted the wireless company loss would be over $0.34 cents a share. Sprint announced its sales had gone up by less than a full percentage point. Sales for the quarter were $8.79 billion, while analysts on Wall Street had predicted... 
 

Earnings for Caterpillar Drop as Mining Orders Shrink

Caterpillar, Inc. the largest maker of construction and mining equipment in the world reported its sales and earnings for the first quarter on Monday. The company’s results fell short of estimates by Wall Street, as orders slowed down from mining companies. Caterpillar’s net income dropped to just below $880 million, which was equivalent to $1.31 per share. Last year during the same quarter, income was $1.59 billion with a per share rate of $2.37, said the Peoria, Illinois based company. Analysts had estimated that profit, excluding any one... 
 

GE Stocks Fall after CEO Cites Weakness in Europe

General Electric fell Friday morning even if its earnings and revenue were equal to Wall Street’s expectations. The drop was attributed to the concerns about Europe. Chairman and CEO Jeff Immelt said that GE planned for a challenging environment across the Atlantic but the situations proved to be weaker than expected with industrial revenues dropping by 17 percent and had a negative impact on its bottom line. GE reported revenue of $35 billion, which is the same as last year’s numbers. Operating earnings were $4.1 billion, which was up 14 percent... 
 

AB InBev and Grupo Modelo Reach Accord with Justice Department

The Department of Justice in the U.S. announced this week that it had reached a settlement with Grupo Modelo and Anheuser-Busch InBev over a merger between the two companies. The deal is worth an estimated $20 billion. The DOJ approval was announced after both beer giants reached a settlement with the Justice Department over the Department’s concerns over antitrust problems. The two companies agreed to divest all of the businesses Grupo Modelo has in the U.S. to another company named Constellation Brands. Included in that divestiture are all the... 
 

Jobless Claims Increase to 352,000

The latest unemployment claims report showed the initial jobless claims to go up while continued unemployment claims dropped. Initial claims were below the 400K level. Seasonally adjusted initial unemployment claims went up 4,000 to 352,000 from last week’s 348,000. Seasonally adjusted continued claims dropped by 35,000 to 3.068 million to make the insured unemployment rate of 2.4 percent. The number of people who applied for new unemployment benefits appeared to stabilize after the recent large swings. This indicated that companies are only hiring... 
 

Profits increase at GE for 2013 First Quarter

General Electric, the largest industrial conglomerate by market capitalization in the U.S. announced its profits had increased by 14% during the first quarter of 2013. That increase was obtained even though the company’s results in Europe ended the quarter with worse numbers that originally anticipated. GE’s earnings equaled 35 cents a share, which was an increase of 17% and in line with Wall Street expectations. GE announced that the emerging economies and the U.S. demand were in line with what it had expected, but that Europe continued to... 
 

Shares drop as Nokia Earnings Miss

Sales for basic phones dropped considerably for Nokia during the first three months of 2013, which helped to overshadow the positive performance of its Lumia smartphone line. The Finland-based company said its operating margins would contract and that helped its stock prices to fall rapidly. Nokia has lagged behind rivals Apple and Samsung in smartphone unit sales. The company announced it recorded sales of 5.6 million units during the first quarter for its Lumia, which was an increase of 21% over its 4.4 million sold during the last three months... 
 

Housing Starts Go Up due to High Demand for Multifamily Units

New-home construction in the United States went up in March to its highest level in five years. It was attributed to the increase in the demand for multifamily buildings that support economic growth. Starts gained 7 percent to a 1.04 million annual rate, which is the most since June 2008, from a revised 968,000 rate in February. Other reports showed consumer prices went down in March and factory production slowed. The high demand for rental units as well as the record-low mortgage rates will keep residential construction a vital part of the expansion.... 
 

Reimann Family Investment firm acquires another Coffee Business

Joh A. Benckiser, the investment firm based in Germany, took over its third coffee business in less than 12 months. The Reimann family investment arm agreed to pay $9.8 billion for D.E. Master Blenders. Based in Amsterdam and well known throughout Europe, Blenders is known for its brand Douwe Egberts. The deal was sealed entirely in cash and valued shares of Master Blenders at $16.33 apiece. Last year, JAB acquired Caribou Coffee based in Minnesota and Peet’s Coffee & Tea based in California in deals that were worth $340 million and $1 billion,... 
 
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