Company news in  brief
Company news in brief

Company news in brief

Jo-Mare Duddy Booysen
SA's Denel reports US$125 mln loss

South Africa's struggling state-owned defence company suffered an operating loss of R1.9 billion (US$125.3 million) for the year to March 31, it said on Friday.

“The decline in our reputation has also had a draining impact on our financial position,” group chief executive Danie du Toit said in a statement, noting that revenue dropped by 36% over the period.

– Nampa/Reuters



Airline bankruptcies surge

Airline bankruptcies have increased this year at the fastest ever rate, led by the collapse of India's Jet Airways, British travel group Thomas Cook and Avianca of Brazil, according to industry data published on Friday.

“2019 has seen the fastest growth in airline failure in history,” said airline consulting firm IBA, which has tracked plane fleets returned to lessors or administrators by 17 carriers that have gone bust so far this year.

More may follow as weaker players are squeezed by low-cost competition and higher fuel costs exacerbated by a strong dollar - which hurts those selling tickets in euros or pounds and buying kerosene and planes in the US currency.

Other airlines that have folded in 2019 include France's Aigle Azur and XL Airways, Germania, Flybmi and Adria of Slovenia, which filed for bankruptcy last week.

The run of bankruptcies has also created opportunities for stronger carriers to pick up planes, traffic and airport slots abandoned by collapsed rivals.

The entire global MAX fleet numbering hundreds of the new jet remains grounded awaiting approval of software changes to address safety concerns after two fatal crashes. That has increased the jostling for substitutes, driving up waiting times and prices for new, second-hand and leased airliners.

– Nampa/Reuters



PepsiCo's advertising blitz drives profit

PepsiCo Inc beat third-quarter profit estimates and forecast upbeat revenue growth for 2019 on Thursday, as aggressive advertising and a focus on healthier products spurred demand for its beverages and snacks in North America.

The company said it expects to meet or exceed its fiscal 2019 organic revenue growth target of 4%.

Since taking the helm last October, chief executive officer Ramon Laguarta has carved out a multi-billion dollar strategy that includes partnering with celebrities such as Chrissy Teigen and ramping up manufacturing capacity for smaller cans to boost demand for out-of-favour sugary sodas.

The company has splurged on new ads for its trademark Pepsi colas, as well as Mountain Dew and Gatorade beverages, rounding off with a campaign centering around the National Football League's 100th anniversary.

Net revenue rose 4.3% to US$17.19 billion in the three months ended 7 September, beating analysts' estimates of US$16.93 billion, according to IBES data from Refinitiv.

– Nampa/Reuters



Apple raises iPhone 11 production

Apple Inc has asked suppliers to increase production of its iPhone 11 models by up to 8 million units, or about 10%, Nikkei Asian Review reported on Friday, citing better than expected demand.

Sources cited by Nikkei said that the recent surge in iPhone orders is concentrated in the cheapest iPhone 11 model and the iPhone 11 Pro model, while Apple has slightly revised down orders for its top range model, the iPhone 11 Pro Max, which has a starting price of US$1 099.

Apple did not respond to a Reuters request for comment outside regular US business hours.

The company launched its three new iPhone models in September and reduced the starting price of the model upgrade, despite better cameras, to US$699, compared to US$749 for last year's iPhone XR.

– Nampa/Reuters



PayPal withdraws from Libra

US payments processor PayPal Holdings Inc said on Friday it was leaving the Libra Association, making it the first member to exit from the Facebook-led effort to build a global digital currency.

PayPal said it would forgo any further participation in the group and would instead focus on its own core businesses.

“We remain supportive of Libra's aspirations and look forward to continued dialogue on ways to work together in the future,” PayPal said in a statement.

Visa and Mastercard Inc are also reconsidering their involvement in Libra as they do not want to attract regulatory scrutiny, the Wall Street Journal reported earlier this month.

With the exit of PayPal, the Libra Association now has 28 members, including Uber Technologies Inc, Lyft Inc and Spotify Technologies.

– Nampa/Reuters

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