Tag Archives: Consumer Product Cycle (TRBC level 2)

UPDATE 1-Italy’s Benetton Group is suspending new orders from Myanmar suppliers | Instant News


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ROME, March 12 (Reuters) – Italy’s Benetton Group said on Friday it had immediately suspended all new orders from its suppliers in Myanmar over concerns over escalating violence in the Southeast Asian country following the ouster of Aung San Suu Kyi’s government last month.

Myanamar accounts for 2% of Benetton’s suppliers, according to the Italian group’s website.

“We express our deepest concern over what is happening in Myanmar,” the street clothing group said in a statement.

“This situation presents such problems, both in terms of security and freedom as well as violations of rights, so we decided to suspend all new orders.”

Myanmar activists held more rallies against the country’s junta on Friday, a day after rights groups said security forces killed 12 protesters.

More than 70 protesters have died since the coup, said the advocacy group Association of Assistance for Political Prisoners (AAPP).

Benetton said his move was intended to provide a “strong and tangible signal” in support of values ​​such as integration and nonviolence.

Earlier this week, Sweden’s H&M, the world’s second-largest fashion retailer, said it was shocked by the use of lethal force against protesters in Myanmar and that they had stopped placing orders in the country. (Reporting by Giulia Segreti in Rome and Elisa Anzolin in Milan; Editing by Valentina Za and Paul Simao)

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Daimler Germany sees 2021 pandemic recovery boost sales, profits | Instant News


LONDON (Reuters) – Daimler AG expects a significant increase in sales and operating profit by 2021 and will replace lost production caused by a shortage of semiconductor chips by the end of the year, the German carmaker said on Thursday.

The prospect of sending carmaker Mercedes-Benz up 2.5% in early trading.

The bottleneck leading to a shortage of semiconductor chips will cut sales largely in the first quarter, Daimler said. Much of the auto industry has struggled to maintain production levels due to chip shortages.

Chief Executive Ola Källenius said during a video conference that Daimler expects chip supply to increase in the second quarter.

He said Daimler had explained its sales expectations to its suppliers, but did not know until December 31 that they would face shortages in the first quarter.

The carmaker also confirmed preliminary financial results for 2020, saying economic conditions in key markets will return to normal in 2021 and does not expect a further pullback as a result of the pandemic.

Similar to its competitors, Daimler is racing to bring a more electric model to the market to meet tightening CO2 emission standards in Europe and China.

FILE PHOTOS: Ola Kaellenius, chairman of Daimler AG attends a presentation of the new Mercedes-Benz S-Class at the Daimler production plant in Sindelfingen near Stuttgart, Germany, September 2, 2020. REUTERS / Ralph Orlowski / File Photo

CEO Källenius said that sales of electric vehicles by 2021 could double as a percentage of Daimler’s overall sales.

Sales of plug-in and fully electric hybrid vehicles accounted for 7.4% of Mercedes-Benz car sales in 2020, up from 2% in 2019.

Following cost savings and a faster-than-expected recovery in the auto sector, Daimler said last month group revenue before interest and tax (EBIT) for 2020 was 6.60 billion euros ($ 7.95 billion).

This month, it plans to release Daimler Truck, the world’s largest maker of trucks and buses, to increase its investor appeal as a focused luxury and electric car business.

CHINESE ‘INCREDIBLE RESTORATION’

Daimler ended 2020 with an adjusted free cash flow of 9.2 billion euros versus 2.7 billion a year earlier.

Factory shutdowns in the first half of 2020 to slow the spread of the new coronavirus left many in the industry expecting a catastrophic year, but a market rebound fueled by China is helping the industry recover faster than expected.

Like its German rivals BMW and Volkswagen AG, Daimler benefits from China’s demand for high-margin luxury vehicles.

“China is experiencing a tremendous recovery,” said Källenius.

Mercedes-Benz sales in China surged more than 22% in the fourth quarter and 11.7% for 2020 as a whole.

While Daimler said it expects its premium car business to increase by more than 7.5% by 2021, it expects its sales in China to grow at a slower pace of between 2% and 7.5% this year.

Group revenue and operating profit for 2021 are expected to increase by more than 7.5%, with adjusted margins from the Mercedes car and van business between 8% and 10%.

($ 1 = 0.8304 euro)

Reporting By Nick Carey; Edited by Kim Coghill, Keith Weir and Barbara Lewis

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Daimler Germany sees 2021 pandemic recovery boost sales, profits | Instant News


LONDON (Reuters) – Daimler AG expects a significant increase in sales and operating profit by 2021 and will replace lost production caused by a shortage of semiconductor chips by the end of the year, the German carmaker said on Thursday.

FILE PHOTOS: Ola Kaellenius, chairman of Daimler AG attends a presentation of the new Mercedes-Benz S-Class at the Daimler production plant in Sindelfingen near Stuttgart, Germany, September 2, 2020. REUTERS / Ralph Orlowski / File Photo

The prospect of sending carmaker Mercedes-Benz up 2.5% in early trading.

The bottleneck leading to a shortage of semiconductor chips will cut sales largely in the first quarter, Daimler said. Much of the auto industry has struggled to maintain production levels due to chip shortages.

Chief Executive Ola Källenius said during a video conference that Daimler expects chip supply to increase in the second quarter.

He said Daimler had explained its sales expectations to its suppliers, but did not know until December 31 that they would face shortages in the first quarter.

The carmaker also confirmed preliminary financial results for 2020, saying economic conditions in key markets will return to normal in 2021 and does not expect a further pullback as a result of the pandemic.

Similar to its competitors, Daimler is racing to bring a more electric model to the market to meet tightening CO2 emission standards in Europe and China.

CEO Källenius said that sales of electric vehicles by 2021 could double as a percentage of Daimler’s overall sales.

Sales of plug-in and fully electric hybrid vehicles accounted for 7.4% of Mercedes-Benz car sales in 2020, up from 2% in 2019.

Following cost savings and a faster-than-expected recovery in the auto sector, Daimler said last month group revenue before interest and tax (EBIT) for 2020 was 6.60 billion euros ($ 7.95 billion).

This month, it plans to release Daimler Truck, the world’s largest maker of trucks and buses, to increase its investor appeal as a focused luxury and electric car business.

CHINESE ‘INCREDIBLE RESTORATION’

Daimler ended 2020 with an adjusted free cash flow of 9.2 billion euros versus 2.7 billion a year earlier.

Factory shutdowns in the first half of 2020 to slow the spread of the new coronavirus left many in the industry expecting a catastrophic year, but a market rebound fueled by China is helping the industry recover faster than expected.

Like its German rivals BMW and Volkswagen AG, Daimler benefits from China’s demand for high-margin luxury vehicles.

“China is experiencing a tremendous recovery,” said Källenius.

Mercedes-Benz sales in China surged more than 22% in the fourth quarter and 11.7% for 2020 as a whole.

While Daimler said it expects its premium car business to increase by more than 7.5% by 2021, it expects its sales in China to grow at a slower pace of between 2% and 7.5% this year.

Group revenue and operating profit for 2021 are expected to increase by more than 7.5%, with adjusted margins from the Mercedes car and van business between 8% and 10%.

($ 1 = 0.8304 euro)

Reporting By Nick Carey; Edited by Kim Coghill, Keith Weir and Barbara Lewis

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UPDATE 2-Australia JB Hi-Fi said sales remained strong as profits soared due to the boom in online sales | Instant News


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February 15 (Reuters) – JB Hi-Fi Ltd said strong sales continued through January after posting an 86% rise in first-half profit on Monday, driven by a surge in online sales as consumers spend big on electronics amid the COVID-19 lockdown. 19. .

The electronics retailer does not provide sales or revenue forecasts for fiscal 2021, but reported comparable January sales growth of 18.6% for JB Hi-Fi Australia and 14.1% for The Good Guys, its biggest revenue earner.

The Melbourne-based company declared an interim dividend of A $ 1.80 per share, compared with A $ 0.99 last year.

Its shares rose more than 2% to A $ 51.95, setting their biggest percentage gain in a week after four straight losing sessions.

“In an uncertain environment, we are constantly adapting and responding and, with a number of opportunities ahead of us, we remain excited about the business prospects,” said Richard Murray, chief executive of JB Hi-Fi.

The retailer said net profit after tax grew to A $ 317.7 million ($ 246.6 million) for the half year ended December 31, in line with previously issued guidelines, while online sales more than doubled to A $ 678.8 million.

Brokerage Jefferies issued a cautionary note, saying that while sales growth remained high through January, sales for JB Hi-Fi Australia and Good Guys slowed relative to fourth-quarter current levels.

“We believe stock availability may start to weigh on sales rather than demand.”

Electronics and household goods retailers have benefited as the coronavirus pandemic forces people to work from home, while massive stimulus measures and strong household savings have kept retail sales going, with several other avenues open to spending.

$ 1 = Australian dollars 1.2883 Reporting by Arpit Nayak in Bengaluru; Edited by Richard Pullin

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Australia’s resurgent housing boom lifted banks from sluggish | Instant News


SYDNEY, February 11 (Reuters) – Australia’s housing market pulled A $ 2 trillion ($ 1.6 trillion) economy out of its first recession in three decades with record high prices, soaring home loans and building approvals at their 19-year peak.

Among the main beneficiaries of the boom are Australia’s largest banks, which have seen a stock rally on expectations of returns and dividends in 2021.

Australian banks fell out of favor last year when the COVID-19 pandemic forced entire sectors of the economy to shut down, prompting the central bank to cut interest rates three times to a record low of 0.1% and launch an unprecedented bond-buying program.

The property market’s solid recovery since then, lower-than-expected loan deferrals and strong credit growth have sent consensus earnings expectations for banks up by 31% over the past two months, said Shane Oliver, Sydney-based head of investment at AMP. .

The extremely low interest rate environment is generally negative for bank earnings, and a flat yield curve, where the gap between short-term and long-term returns is narrow, should squeeze profits.

However, in the case of Australia, looser financing conditions and strong government stimulus have pushed lending volumes higher, more than offsetting the hit from tighter net interest margins.

Property deals surged as residents took advantage of lower borrowing costs and because remote working technology allowed people to buy larger residences from downtown.

Major lender Commonwealth Bank of Australia on Wednesday increased its dividend payout ratio to 67% after posting above-expected first-half cash profit.

The Sydney-based bank also reported a surge in household and business savings amid solid loan growth while loan holdings slipped to 25,000 on January 31 from 145,000 loans at the end of June.

“Short-term macro pulls appear to be in favor of the bank,” said Anthony Doyle, a cross-asset investment specialist at Fidelity International.

“Rising house prices, the reopening of the economy and the absence of provisions point to a sharp rise in income and dividend growth in 2021,” added Doyle.

Shares of the so-called “Big Four” banks – CBA, Westpac Banking Corp, ANZ Banking Group and National Australia Bank – have jumped between 5% and 15% since the start of the year.

In comparison, global peers such as Lloyds Banking, Citi, ING and HSBC fell or were only slightly higher.

Australia’s REA Group, which advertises property and property-related services on websites and mobile apps, is also reaping the benefits of the housing revival.

“We expect listings to grow 10% in 2021 driven by higher confidence among vendors due to strong buyer interest, low interest rates and healthy bank liquidity,” said Jefferies analyst Roger Samuel, boosting REA for “buying”.

THE FUTURE IS CHALLENGED

The housing boom, sparked by massive monetary and fiscal stimulus, is good for an economy growing at a faster-than-expected rate after the country managed to contain last year’s coronavirus outbreak.

Monetary easing and fiscal stimulus approaching A $ 300 billion have helped revive the housing market, with economists forecasting the value to rise 7-10% by 2021.

With interest rates expected to remain at 0.1% for some time and a third round of quantitative easing likely later this year, the bank’s earnings outlook remains challenging.

Although the central bank upgraded Australia’s economic outlook last week, it does not expect the unemployment rate to reach its full employment forecast and inflation is not seen hitting its target range of 2-3% through 2023.

Prime Minister Scott Morrison has signaled international borders will remain closed this year even as a vaccine has been rolled out globally, meaning population growth from migration will remain near zero.

In addition, the government has also gradually eased some of the fiscal stimulus launched after the pandemic, creating uncertainty over jobs and consumer spending.

Fidelity’s Doyle remains “underweight” on Australian banks and noted some structural obstacles.

“Underlying profits for banks will remain challenged in an environment of very low interest rates and quantitative easing,” he said. “Sufficient liquidity has resulted in intense competition within the sector, as banks seek to increase lending and gain market share.” ($ 1 = 1.2932 Australian dollars)

Reporting by Swati Pandey; Edited by Sam Holmes

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