* Comments from Germany take wind out of equity rallyTOKYO, Oct 18 (Reuters) - Japan’s Nikkei share average fell
more than 1 percent on Tuesday from a six-week high hit the
previous day on concerns that Europe’s solution to its debt
crisis may not be as fast and comprehensive as some had hoped
for.Shares in Olympus , tumbled for a third day and have
lost 41 percent since its shock dismissal of its CEO, with the
camera and endoscope maker under pressure to disclose details of
payments to advisers in the buyout of a UK-based medical
equipment firm.Germany said on Monday that a summit of EU leaders next
Sunday would not produce a miracle cure for the euro zone’s
sovereign debt crisis, a warning that poured cold water on hopes
of a clear-cut solution to the debt’s crisis.”I’d say more than half of equity rally this month had been
driven by hopes of European policy steps. I thought the rally
would run out of steam after the EU summit but it came faster,”
said Soichiro Monji, chief strategist at Daiwa SB Investments.The Nikkei average fell 1.4 percent to 8,755.46,
while the broader Topix index lost 1.2 percent to
752.95.For now, support for the Nikkei is seen around 8,689, a 38.2
percent retracement of its rally to Monday’s six-week closing
high from its Oct. 5 low, and then at its 25-day moving average,
now around 8,650.Shares of exporters, which had benefited from optimism on
the euro zone’s debt crisis, underperformed the overall market.Machinery manufacturers fell 2.4 percent while
makers of electronics goods fell 2.2 percent and auto
stocks dropped 1.7 percent.Some of those manufacturers, such as Honda and Sony
, have also been hit by concerns over flood damage at
their factories in Thailand.Olympus continued to fall in heavy trade, briefly hitting a
new 2-1/2-year low of 1,455 yen as the company’s feud with
ousted Chief Executive Michael Woodford grows nastier.The company told investors on Monday that it may take legal
action against Woodford, accusing him of disclosing confidential
information in media interviews.Woodford in turn has accused the board of firing him for
probing allegations of improper payments related to
acquisitions, according to media reports.Investors are also focused on U.S. corporate earnings, with
the scorecard so far mixed at best.This week will see reports from Goldman Sachs , Bank
of America , Apple Inc and other prominent
companies.”Looking at U.S. corporate earning so far, I’m left with the
impression that even though EPS is coming in line with
expectations, the top line is weak at many companies. I expect
global shares to slip towards the end of month,” Monji said.
@7 months ago with 34 notes
#Nikkei #slips #from #6wk #high #hurt #by #euro #zone #doubts
* Says economy likely to remain tough for some time* Shares up 5.17 pct* Interim div 0.33 pence, up 22.2 pctBy Michelle MartinLONDON, OCT 13 - Britain’s biggest cash and carry wholesaler
Booker posted a 22 percent rise in first-half profit and
said a wider product range, reduced prices and improved customer
service would help it cope in a tough economic backdrop.The firm, with over 170 branches supplying convenience
stores, restaurants, pubs, schools and prisons, cut 1,000 prices
in June and has recently launched a new line of snacks, widened
its drinks offering and introduced a new fruit and vegetables
range.Booker made a pretax profit of 45 million pounds ($71
million) in the 24 weeks to Sept. 9, up from 36.9 million in the
same period last year.Chief executive Charles Wilson, a former Marks and Spencer
executive, told reporters he expected the economy to
remain in the doldrums for some time.”I think we’re not expecting much improvement in the
environment in the near future,” he said, but added he was
optimistic about Booker’s prospects after the company’s strong
first-half results.”We run a very tight ship; we’re trying to offer the best
choice, price and service for caterers and retailers in the UK
and as we continue to do that we earn more of their business.”Britain’s economy has largely stagnated for the past 12
months and the Bank of England’s chief economist Spencer Dale
said on Wednesday the country’s economy was likely to get
steadily weaker through the rest of this year.Booker’s strategy of pushing more sales through its existing
outlets, rather than expanding, is proving very profitable for
the company, Dave McCarthy, an analyst at Evolution Securities,
told Reuters.”They won’t have trouble with the tough environment because
they’re better positioned than their competition; they’ve got a
better strategic position, they’ve got a strong balance sheet
and they’ve got truly world-class management,” he said.Wilson said he had some concerns about the risk of a further
deterioration in European sovereign finances although Booker’s
lack of borrowings meant the company was not directly exposed.”We do worry a bit about it in terms of how the exchange
rate moves and you do worry about what it would do to the
overall UK and western world economies,” he said.But Booker is getting a boost from small and medium
enterprises which are trying to reduce their dependence on
borrowing lines, he added.Shares in Booker were up 5.17 percent at 0925 GMT.Total sales climbed 8.5 percent to 1.8 billion pounds, while
sales at branches open over a year were up 6.5 percent.”Group turnover in the second half to date is ahead of the
same period last year. Working capital levels and costs are in
line with plan,” the firm said in a statement, adding it
continued to trade in line with management
expectations .Booker, which ended the half with net cash of 58.7 million
pounds, is paying an interim dividend of 0.33 pence, up 22.2
percent.”We take such a significant increase in dividend to be a
strong indicator of management’s confidence in the group’s
future prospects,” Shore Capital analyst Darren Shirley said.Booker also said its internet business and fledgling Indian
business were making good progress, adding that Ritter and
Courivaud, the two businesses it acquired last year, were
performing well.According to Thomson Reuters data, analysts’ consensus
full-year pretax profit forecast is 80.1 million pounds.
@7 months ago with 26 notes
#UPDATE #2Booker #shows #resilience #with #H1 #profit #rise
* Says economy likely to remain tough for some time* Shares up 5.17 pct* Interim div 0.33 pence, up 22.2 pctBy Michelle MartinLONDON, OCT 13 - Britain’s biggest cash and carry wholesaler
Booker posted a 22 percent rise in first-half profit and
said a wider product range, reduced prices and improved customer
service would help it cope in a tough economic backdrop.The firm, with over 170 branches supplying convenience
stores, restaurants, pubs, schools and prisons, cut 1,000 prices
in June and has recently launched a new line of snacks, widened
its drinks offering and introduced a new fruit and vegetables
range.Booker made a pretax profit of 45 million pounds ($71
million) in the 24 weeks to Sept. 9, up from 36.9 million in the
same period last year.Chief executive Charles Wilson, a former Marks and Spencer
executive, told reporters he expected the economy to
remain in the doldrums for some time.”I think we’re not expecting much improvement in the
environment in the near future,” he said, but added he was
optimistic about Booker’s prospects after the company’s strong
first-half results.”We run a very tight ship; we’re trying to offer the best
choice, price and service for caterers and retailers in the UK
and as we continue to do that we earn more of their business.”Britain’s economy has largely stagnated for the past 12
months and the Bank of England’s chief economist Spencer Dale
said on Wednesday the country’s economy was likely to get
steadily weaker through the rest of this year.Booker’s strategy of pushing more sales through its existing
outlets, rather than expanding, is proving very profitable for
the company, Dave McCarthy, an analyst at Evolution Securities,
told Reuters.”They won’t have trouble with the tough environment because
they’re better positioned than their competition; they’ve got a
better strategic position, they’ve got a strong balance sheet
and they’ve got truly world-class management,” he said.Wilson said he had some concerns about the risk of a further
deterioration in European sovereign finances although Booker’s
lack of borrowings meant the company was not directly exposed.”We do worry a bit about it in terms of how the exchange
rate moves and you do worry about what it would do to the
overall UK and western world economies,” he said.But Booker is getting a boost from small and medium
enterprises which are trying to reduce their dependence on
borrowing lines, he added.Shares in Booker were up 5.17 percent at 0925 GMT.Total sales climbed 8.5 percent to 1.8 billion pounds, while
sales at branches open over a year were up 6.5 percent.”Group turnover in the second half to date is ahead of the
same period last year. Working capital levels and costs are in
line with plan,” the firm said in a statement, adding it
continued to trade in line with management
expectations .Booker, which ended the half with net cash of 58.7 million
pounds, is paying an interim dividend of 0.33 pence, up 22.2
percent.”We take such a significant increase in dividend to be a
strong indicator of management’s confidence in the group’s
future prospects,” Shore Capital analyst Darren Shirley said.Booker also said its internet business and fledgling Indian
business were making good progress, adding that Ritter and
Courivaud, the two businesses it acquired last year, were
performing well.According to Thomson Reuters data, analysts’ consensus
full-year pretax profit forecast is 80.1 million pounds.
@7 months ago
#UPDATE #2Booker #shows #resilience #with #H1 #profit #rise
* Chrysler talks continue* Chrysler union leaders to meet Wed. on contract progressDETROIT, Oct 11 (Reuters) - Workers at a large Ford Motor
Co union local near Detroit rejected the proposed
Ford-United Auto Workers contract in early voting, indicating
it could be a cliff hanger until voting is finished on Oct.
18.The union and Detroit automakers are striving to ink new
contracts so they can get on with the business of rebuilding
the U.S. auto industry after an historic downturn that led to
bankruptcy for two of the three.Last month, General Motors Co workers voted almost
2-to-1 in favor of a new four-year contract that is slightly
less generous than the proposed Ford pact. From early returns,
the GM-UAW vote indicated the contract would be ratified.Late on Tuesday, the UAW and Chrysler Group LLC were still
at the bargaining table.Union president Bob King told plant leaders on Monday that
he wanted to present a new tentative agreement between the
union and Chrysler on Wednesday morning.At UAW Local 900, which represents about 2,700 workers at
Ford assembly and stamping plants in Wayne, Michigan, 51
percent voted against the proposed contract, and 49 percent
were in favor, UAW officials said.Local 900 is one of the first locals to complete voting on
the proposed deal, which was reached last week between UAW and
Ford negotiators who had been talking since July.The UAW represents hourly workers at the three major U.S.
automakers. GM has about 48,500 UAW-represented workers, Ford
has about 41,000, and Chrysler has about 26,000.The union said that with 7.3 percent of its locals
reporting, 50.1 percent of production workers had voted in
favor of the proposed Ford contract, and 54.8 percent of
skilled trades workers had voted against it.TOO EARLY TO CALLLabor analyst Kristin Dziczek said it was too early to call
the Ford contract ratification as being in danger.”Remember that GM had a big local, Lansing Delta Township
(in Michigan), turn their contract down and it still passed
easily,” said Dziczek, noting that the chairman of Local 900,
Bill Johnson, had lobbied against the contract.”The fact that it came in so close with the chairman
opposed to it shows a lot of people still like this agreement,”
said Dziczek.Johnson did not return telephone calls for comment on
Tuesday.Both the GM and Ford contracts offer signing and
profit-sharing bonuses, but no pay raises for veteran hourly
workers, and both allow the companies to expand the use of
lower-paid entry-level workers to help lower labor costs.Ford’s tentative deal with the UAW calls for each veteran
hourly worker to get at least $16,000 in bonuses. Ford may
benefit as lower-paid new workers fill new positions or replace
veteran employees.Heading into this year’s talks, the Center for Automotive
Research said the cost to the companies of average hourly pay
and benefits for production workers was about $58 per hour at
Ford, $56 at GM and $50 at Chrysler. That compares to about $54
to $56 per hour at Toyota Motor Corp’s U.S. plants and
$50 to $51 at Honda Motor Co’s U.S. plants.As a result of 2009 GM and Chrysler bankruptcies, their
workers cannot call a strike on contract terms. So, if Chrysler
and the UAW have an impasse, either can request binding
arbitration. Both King and Chrysler Chief Executive Sergio
Marchionne have said they want to avoid arbitration.Chrysler emerged from bankruptcy managed by Italy’s Fiat
SpA .Ford’s unionized workers are allowed to strike.
@7 months ago
#US #auto #workers #split #in #early #voting #on #Ford #pact
By Wayne Arnold
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Olympusâ embarrassing decision to dump its foreign chief executive two weeks after naming him to the job shows that reform is a slow and fitful process. Michael Woodford was brought in to carry out a house-cleaning at the Japanese camera maker, and became one of the countryâs handful of non-Japanese corporate bosses. That the board decided to fire him so soon shows the medicine was distasteful. It also strengthens the case for a bigger dose.
Unlike foreign bosses who came from outside, like Nissanâs Carlos Ghosn and Sonyâs Howard Stringer, Woodford spent 30 years working his way up through the ranks. Worryingly, he has alleged in the Wall Street Journal that his dismissal came in response to questions about governance problems raised by a local magazine. One issue seems to be high prices paid for overseas takeover targets. That wouldnât be unusual: big-name Japanese firms all too often splash out for bolt-ons abroad to raise revenue without having to undertake more painful restructuring at home.
Olympus needs restructuring in spades. It has a roughly 75 percent market share in endoscopes, where operating profit margins are as high as 30 percent, by Goldman Sachs estimates. Yet it has clung to a loss-making business of selling digital cameras, competing with the likes of Nikon and Samsung. Group revenue increased by 80 percent between 2001 and 2008, but earnings fell 37 percent, while net debt to equity increased sharply.
Woodford clearly rubbed someone up the wrong way. But getting rid of him isnât likely to remove the pressure on Olympus for reform, and may make calls for change even louder. In its most recent annual report, the company promised âdrastic structural reformsâ. Fear they may not happen could explain why
the companyâs shares plunged 38 percent in the two days following the chief executiveâs ouster.
But itâs too late for Japan Inc to curtail the reformist experiment. Foreigners now hold a fifth of listed Japanese companies. And pension funds, facing growing payouts from Japanâs aging population, are starting to reject low dividend proposals and poorly performing directors. Woodford is gone, but shareholders will invariably demand that others take his place.
@7 months ago
#Olympus #fiasco #strengthens #the #case #for #Japan #reform
* Says economy likely to remain tough for some time* Shares up 5.17 pct* Interim div 0.33 pence, up 22.2 pctBy Michelle MartinLONDON, OCT 13 - Britain’s biggest cash and carry wholesaler
Booker posted a 22 percent rise in first-half profit and
said a wider product range, reduced prices and improved customer
service would help it cope in a tough economic backdrop.The firm, with over 170 branches supplying convenience
stores, restaurants, pubs, schools and prisons, cut 1,000 prices
in June and has recently launched a new line of snacks, widened
its drinks offering and introduced a new fruit and vegetables
range.Booker made a pretax profit of 45 million pounds ($71
million) in the 24 weeks to Sept. 9, up from 36.9 million in the
same period last year.Chief executive Charles Wilson, a former Marks and Spencer
executive, told reporters he expected the economy to
remain in the doldrums for some time.”I think we’re not expecting much improvement in the
environment in the near future,” he said, but added he was
optimistic about Booker’s prospects after the company’s strong
first-half results.”We run a very tight ship; we’re trying to offer the best
choice, price and service for caterers and retailers in the UK
and as we continue to do that we earn more of their business.”Britain’s economy has largely stagnated for the past 12
months and the Bank of England’s chief economist Spencer Dale
said on Wednesday the country’s economy was likely to get
steadily weaker through the rest of this year.Booker’s strategy of pushing more sales through its existing
outlets, rather than expanding, is proving very profitable for
the company, Dave McCarthy, an analyst at Evolution Securities,
told Reuters.”They won’t have trouble with the tough environment because
they’re better positioned than their competition; they’ve got a
better strategic position, they’ve got a strong balance sheet
and they’ve got truly world-class management,” he said.Wilson said he had some concerns about the risk of a further
deterioration in European sovereign finances although Booker’s
lack of borrowings meant the company was not directly exposed.”We do worry a bit about it in terms of how the exchange
rate moves and you do worry about what it would do to the
overall UK and western world economies,” he said.But Booker is getting a boost from small and medium
enterprises which are trying to reduce their dependence on
borrowing lines, he added.Shares in Booker were up 5.17 percent at 0925 GMT.Total sales climbed 8.5 percent to 1.8 billion pounds, while
sales at branches open over a year were up 6.5 percent.”Group turnover in the second half to date is ahead of the
same period last year. Working capital levels and costs are in
line with plan,” the firm said in a statement, adding it
continued to trade in line with management
expectations .Booker, which ended the half with net cash of 58.7 million
pounds, is paying an interim dividend of 0.33 pence, up 22.2
percent.”We take such a significant increase in dividend to be a
strong indicator of management’s confidence in the group’s
future prospects,” Shore Capital analyst Darren Shirley said.Booker also said its internet business and fledgling Indian
business were making good progress, adding that Ritter and
Courivaud, the two businesses it acquired last year, were
performing well.According to Thomson Reuters data, analysts’ consensus
full-year pretax profit forecast is 80.1 million pounds.
@7 months ago with 11 notes
#UPDATE #2Booker #shows #resilience #with #H1 #profit #rise
* Says on track for year end net debt of 600 mln stg* Says 2012 outlook unchangedLONDON, Oct 12 (Reuters) - British builders’ merchant and
DIY retailer Travis Perkins posted a rise in third
quarter sales as it won share from rivals in a tough market.The firm, which trades from 1,841 branches across the UK,
said on Wednesday turnover increased an underlying 5.9 percent
in the three months to end-Sept.Travis Perkins said sales growth at its merchanting business
and at its plumbing and heating business BSS offset a
particularly challenging consumer environment for its retail
business Wickes.It said third quarter gross margins were in line with the
performance of the first half.The firm said it was on track to achieve its year end net
debt target of 600 million pounds ($937 million), while its
outlook for 2012 remained unchanged from that outlined along
with interim results in July.Travis Perkins said third quarter turnover at builders
merchant depots open more than a year increased 7.7 percent and
was up 2.6 percent at BSS.However, like-for-like sales fell 2 percent at home
improvement business Wickes.Shares in Travis Perkins, which have lost 22 percent of
their value over the last six months, closed Tuesday at 816
pence, valuing the business at about 1.97 billion pounds.
@7 months ago with 12 notes
#RPTUPDATE #1Travis #Perkins #winning #share #in #tough #market
