Company news in brief

Fiat halts production in EuropeFiat Chrysler (FCA) said yesterday it was halting production through March 27 at the majority of its plants in Europe following a coronavirus crisis which is disrupting the economy.FCA said production for its FCA Italy and Maserati units would stop in the next two weeks at the Italian plants of Melfi, Pomigliano, Cassino, Mirafiori, Grugliasco and Modena. Serbia's Kragujevac facilities and Poland's Tychy plant will also close."The temporary suspension ... enables the group to effectively respond to the interruption in market demand by ensuring the optimisation of supply," FCA said in a statement. – Nampa/ReutersAramco to cut capital spendingSaudi Aramco on Sunday said it plans to cut capital spending in the wake of the coronavirus outbreak, as it posted a 21% decline in 2019 net profit due to a drop in oil prices and production, its first earnings announcement as a listed company.The world's most profitable company and by far its biggest oil producer, Aramco listed its shares in Riyadh in December in a record US$29.4 billion initial public offering that valued it at US$1.7 trillion.Its shares fell below the IPO price last week for the first time, as oil prices crashed after the collapse of an output deal between OPEC and non-OPEC members which led to an oil price war between Riyadh and Moscow. Saudi Arabia has said it plans to ramp up production to gain market share.The company expects capital spending for 2020 to be between US$25 billion and US$30 billion in light of current market conditions and recent commodity price volatility, compared to US$32.8 billion in 2019.Aramco, which is 98% owned by the Gulf kingdom, reported a net profit of US$88.2 billion in 2019, down from US$111.1 in 2018.Aramco remains the world's most profitable company, beating Western oil majors such as Exxon Mobil Corp, and Apple Inc, which made $55 billion in its last financial year that ended in September. – Nampa/ReutersApple close stores to contain virusApple Inc said it is closing all its retail stores, except those in Greater China, for the next two weeks to minimise the risk of coronavirus transmission, a move that was followed by several US retailers on Saturday.The announcements escalated the global response to the outbreak, as most companies had previously kept stores open.Apple reopened all 42 of its branded stores in China on Friday as the number of new cases fell in the country where the coronavirus outbreak originated.Retailers are bracing for a blow to sales as virus-wary shoppers in Europe and the United States stay home.US retailers including Macy's Inc, Saks Fifth Avenue and Gap Inc's Banana Republic sent notices to shoppers on Thursday saying they were open for business in a move to stem losses due to a steep drop in traffic. – Nampa/ReutersItaly to take full control of AlitaliaThe Italian government is close to taking full control of Alitalia, as the coronavirus outbreak in Europe was forcing it to abandon plans to find a buyer for the ailing national carrier, daily Il Messaggero said on Sunday.According to the plan, which the report said was already at an "advanced stage", the government would take control of both Alitalia's aviation and land operations through a public vehicle, the report said, adding the plan would be implemented "in a short time".Rome had previously set a May 31 deadline to complete the sale of the loss-making airline, with potential investors asked to submit expressions of interest by March 18.A source with knowledge of the matter told Reuters that Alitalia, which has been struggling for years, was running out of cash, despite an extra 400 million euro injection decided by Rome at the beginning of the year.In a separate report, daily La Repubblica on Sunday said Rome was planning an immediate intervention in favour of the air transport industry worth 500 million euro followed by other measures worth 3 billion euro, which would help nationalise Alitalia. – Nampa/ReutersNetherlands adamant to keep KLM runningDutch finance minister Wobke Hoekstra said Sunday that the Netherlands will do "everything it takes" to keep Air France-KLM and Amsterdam's Schiphol airport operating.Hoekstra would not give any details about a possible bail out but stressed that Air France-KLM was "vital for the Dutch economy" and said he was in close contact with his French colleagues and the Air France management.Air France-KLM is facing falling revenues due to the impact of the coronavirus on its business. On Friday, KLM, the Dutch subsidiary of Air France-KLM, said it would slash up to 2 000 jobs and ask for government support as it cuts working hours by one-third across its entire staff. – Nampa/Reuters

Company news in brief

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