Daicel Corp., one of the air bag inflator producers said it has not received further discussions from its customers about their inflator sales after different automakers recalled their units worldwide due to potential defective airbags produced by Takata Corp, Daicel’s rival.
The Osaka-based company has 16% of the worldwide inflator market and contends against Takata. Daicel said it is not considering any new capital outlay for the production of airbags, until further notice.
Takata Corp, also based in Japan, warns a bigger full-year loss as it reported its quarterly revenue on Thursday. The company has 22% of the worldwide inflator market, securing $655 million or 75 billion yen in covering almost 9 million recalls of cars.
For many years, Takata’s air bag inflators have been used by different car makers across the globe. However, a United States regulatory probe focuses on the said products, ordering a recall of about 17 million vehicles worldwide due to potential defective products.
Two experts in the industry said the company might save 2 or more billion yen from its July-September revenue in covering charges for additional recalls.
On Thursday, Daicel announced its July-September earnings of 4.1 billion dollars as its shares rose more than a quarter during the recent two weeks. The company is also hopeful that it would obtain the automaker’s industry from Takata.
The largest US-based homebuilder, D.R. Horton Inc, posted its quarterly revenue better than the estimates, driven by a 38% increase in orders and suggested an uptick throughout the housing demand.
Horton said its sold homes went up by 25% to 8,612 during the quarter that ended on September 30. During the year’s first 8 months, home prices along with interest rates went soaring, but Horton customers have returned after that.
Based on the Commerce Department’s data, the housing industry is showing recovery with a rise of 6.3% in September following the 14.4% drop in August.
On Monday, the Toll Brothers Inc., a luxury homebuilder, said orders from their company increased both in dollars and units, a first-time in 4 quarters.
Meanwhile, Horton’s revenue when it comes to its home sales, excluding land sales increased 33% to 2.4 billion dollars, exceeding the average estimate of analysts amounting to 2.38 billion dollars.
The company net income jumped to 166.3 million dollars or 45-cent per share, compared to the 139.5 million dollars or 40-cent per share the previous year. However, the company earnings overlooked the average estimate of analysts of 48-cent per share because costs increased to almost 35%.
Company shares dropped to less than 1% at 23.25 dollars in the premarket trading. Stock, on the other hand, rose 38% within the year up to Monday’s close.
The Houston-based oil company, Apache Corp reported a net loss of 1.3 billion dollars on Thursday as the impact of tax, gas, and oil property charges, although the company is in the midst of selling its offshore operations.
Despite the company’s pressure from Jana Partners, an Apache activist stated in July its intentions of exiting two projects in Australia and Canada, those which are liquefied natural gas projects. Apache is also assessing the spin-off or sale of its global operations in order to concentrate on drilling in the North American shale shafts.
The company posted a 1.3 billion loss, equivalent to 3.50 dollars per share, compared to the 300 million profit, or 75-cent per share same quarter last year.
Apache generated a 1.38 dollar per share profit, excluding items that are included in the 1 billion dollar write-down of specific gas and oil assets because of low energy costs. Analysts estimated an average profit of 1.38 dollars per share.
The company’s overall gas and oil output for the quarter be around 637,000 barrels of oil equivalent per day or ‘boepd’, compared to the 784,000 ‘boepd’ last year.
Apache said it is now expecting its North American liquid production for 2014 to meet the estimated growth of between 15% and 18%.
The AOL Inc., a digital media company posted its revenue growth, better than expected as advertisers utilized the company’s automated platforms in buying and selling digital ads.
The company’s overall quarterly revenue jumped 12% to 626.8 million dollars, surpassing the average estimate of analysts of 623.5 million.
Its advertising revenue rose 18% to 473.4 million dollars, driven by a significant uptick in its sales from third-party platforms, wherein the company assists advertisers in placing dollars on further digital properties. However, company shares dropped 6% to 41.36 dollars on Thursday’s morning trade.
The company owns The Huffington Post, a media property, and Adap.TV, an automated advertising platform, being in the middle of a reversal process, moving away from subscription dial-up profits.
AOL is benefiting from the increasing trend of advertisers who are allocating more money on digital video. Other media companies posted weak ad revenue at their cable units this week. Other shifts came from poor ratings, which caused advertisers to find out digital video.
The company CEO Tim Armstrong said consumers are in quick motion towards web video, mobile, and streaming video products. The CEO reiterated that advertisers are allocating more TV money with digital video.
AOL’s net income jumped to 28.5 million dollars or 35-cent per share for the quarter. Excluding items, the company earnings were at 52-cent per share, meeting the analysts’ forecast.
AMC Networks Incorporated, home to hit shows like “Mad Men” and “Breaking Bad”, reported higher-than-expected overall quarterly profit because the company’s business significantly benefited from purchasing Chellomedia, an international provider of content.
AMC purchased Chellomedia, a part of Liberty Global Plc of John Malone, for almost $1.04B last January, allowing AMC to access more markets in 130 different countries.
Overall revenue from AMC’s division that primarily holds their film and international business, increased to almost 9-fold amounting to $122.7M., This is mainly because of the recent success of “Boyhood”, a drama film by Richard Linklater that was filmed for a duration of 12 years.
Meanwhile, new AMC shows, Like “Turn”, “Low Winter Sun”, and also “Halt & Catch Fire” failed in duplicating the great success of “Mad Men”, “Breaking Bad”, and also “the Walking Dead”, AMC’s net overall profit decreased mainly because of more production costs.
AMC is scheduled to also release a “Breaking Bad” prequel entitled “Better Call Saul”, this coming February.
AMC Networks Incorporated is also in the works of producing a companion zombie show to “The Walking Dead” that will feature how the same zombie apocalypse in the show’s storyline are affecting other countries.
AMC’s overall shares increased to 1.3% to a value of $60.74 during the early NASDAQ trading last Thursday.
Allianz, a German insurer, increased the amount of profit the company will give to its shareholders as dividends, promising to sustain the cash flow after reporting its increased net profit during the third quarter that beats estimates.
On Thursday, the biggest European insurer said it will reimburse 50% of its net profit as dividends, compared to the previous 40%. The move was surprising, and will help pacify the shareholders who are anxious about management turmoil as well as investor outflows in Pimco, the company’s management arm.
Dividend policy will be reviewed towards the year-end, after facing recommendations suggested by investors and analysts to deliver its dividend in line with competitors such as the Zurich Insurance that reimburses nearly 70% of its net results.
Allianz said the management intends to assess and reimburse the reserved budget earmarked for exterior growth every 3 years, with the first review by 2016’s end.
The company’s net profit and quarterly operating profit jumped 11% and 5%, respectively, beating the analysts’ estimate, including its operating profit in asset management and property-casualty insurance. However, an 8% drop in its asset management was posted the previous quarter.
Allianz is also expecting a 10.5B euros earning in its operating profit within the year. Company net profit rose to 1.6B euros during the quarter, from the previous quarter’s 1.45B euros, surpassing the average forecast of 1.54B euros.
On Tuesday, the Alibaba Group Holding Ltd, an electronic-commerce giant reported its 9-billion-dollar Singles’ Day sales in China, indicating the Chinese consumers’ buying power as well as the significance of the said event throughout the merchandising calendar.
The company’s 35 billion yuan sales record of 2013 was surpassed, recording 57.1 billion yuan or 9.3 billion dollars this year. This was achieved the midnight after the Chinese consumers, including foreign shoppers purchased heavily on discounted products online.
The Single’s Day event in China is almost similar to the United States’ Black Friday and Cyber Monday events, and is considered as the Chinese Valentine’s Day, although in 2009 it was converted into an online shopping event.
Jack Ma, founder and CEO of Alibaba, said that Alipay, the company’s financial services unit will likewise go public in China, while feeling a bit anxious about higher expectations and pressures since Alibaba is now a listed company. The company’s executive vice chairman, Joe Tsai, also emphasized the unleashed consumption power of Chinese consumers.
The current sales were helped by what they call the “pre-sales initiative” wherein merchants advertise their prices as soon as October 15, charging deposits for pre-sold items, however, the processing of full payments as well as shipping are done during the event itself.
Some of the 27,000 merchants have had complains about discounts from corporate rivalries, undercutting their benefits such as the Suning Commerce Group, JD.com Inc., and Wal-Mart Stores Inc. However, Tsai was optimistic of the company’s current position, saying that no other company can create another Single’s Day event as it has become global and reached overseas shoppers in over 200 countries.
Stocks from Spirit Aerosystems remain impressive as they record another high this third quarter of 2014. The market is hoping for an increase from this company since they have been performing so well in the past months. However, the results were more than what they have foreseen.
They have reached as much as five percent in their total shares. This is far from the usual 2 to 3 percent experienced by the other companies in the same field.
They are heavily reluctant on their products related to their main customer – Boeing. They have improved so much of their inventory to make sure that this huge jet company gets its money’s worth.
Also, another factor that could be tied up to this is the increase of demand from Boeing. Recently, they have shifted from manufacturing their own products. They have resulted to outsourcing since it is more convenient and more efficient to do so.
This has given Spirit Aerosystems to step up and put up with more and more impressive numbers. This year, they have recorded a steady increase in their portfolio. The best thing about this is that they are expecting more come 2015. Everybody is watching out if they will still belong to the highlights shown by the market by the start of next year.
The famed banana company Chiquita is now under the hands of the two Brazilian companies Cutrale and Safra after they won the bitter battle against other bidders and sealed the deal with a $1.3 billion acquisition.
It can be recalled that there have been a number of rejections made by Chiquita before the final deal with Cutrale and Safra. There was even a merging offer made by the big company Fyffes but it didn’t the approval of the highly valued banana brand.
Fyffes is one of the famed fruit companies of today with the main goal of bringing the business to Dublin to make sure that its revenues would not be affected by the high tax rates.
Out of the many bidders, Chiquita arranged to sell the 144-year old company to the head of one of the leading orange juice groups in Brazil that is Jose Luis Cutrale and to the billionaire banker Joseph Safra. Each share was sold at $14.50 which valued Chiquita at $1.3 billion with debts already included.
The success of the Brazilian companies in winning the deal with the banana group brings an end to its 3-month long battle against Fyffes of Ireland that intended to close a merger with Chiquita.
Catering to the increasing demand of people who want to eat healthy products will be a big challenge for Cutrale-Safra who won the bid but they are looking out on ways to help them achieve success.
For the side of Chiquita, the acquisition that will complete by 2015 shows a surprise twist for the company which the Latin Americans hated for a long time already as it was long seen as a symbol of US repression and imperialism.
Regal Entertainment is looking at the possibility of selling the entire company out for better profit.
This is a move that may not be very well accepted by the supporters of the products of any particular company. However, this is proven to be among the widely-accepted strategies in the world of business. Selling out does not really mean that the company has lost everything. It could just mean that they will have the same team – meaning the same theme for their movies, but not the same management. After all, money is still important to run the shows.
In the past nine months, the company has experienced a steady meltdown in its portfolio. It has been struggling as seen in the $2.3 to $2.2 billion decrease in its assets. It may be small when it comes to the net assets but this is equivalent to fifteen percent already. Coming back up to the market will be harder without some solid changes to come on the way.
In the meantime, there are no contracts released on whether they will pursue with the sale. However, there is already a team inside