COMPANY NEWS IN BRIEF
COMPANY NEWS IN BRIEF

COMPANY NEWS IN BRIEF

Phillepus Uusiku
Samsung Elec Q2 profit rise

Samsung Electronics Co Ltd said second-quarter operating profit likely rose 23%, beating analysts' estimates as solid chip sales to data centres bulking up in a work-from-home economy during the coronavirus pandemic offset weak demand for smartphones and TVs.

One-off gains from its display business also helped boost operating profit, the company said. The South Korean tech giant said operating profit was likely 8.1 trillion won (US$6.80 billion) in the quarter ended June.

Revenue likely fell 7% to 52 trillion won from a year earlier, it said. Work-from-home orders and growth in online learning is underpinning chip demand amid the Covid-19 pandemic and pushing up DRAM memory chip prices.

Analysts, however, warned that increases in memory chip prices may not continue in the second half of the year as data centre customers are likely to be conservative in stockpiling chips given the resurgence of Covid-19 cases in the United States and other countries.

While prices jumped 14% on average in the quarter, they were flat in June versus May, data from DRAM exchange showed. – Nampa/Reuters

Royal Caribbean, Norwegian team up

Cruise industry rivals are teaming up in an effort to sail again. Royal Caribbean Group and Norwegian Cruise Line Holdings Ltd announced a joint task force to help develop safety standards for restarting their businesses during the coronavirus pandemic.

The cruise industry has taken a major hit from the pandemic, with some of the earliest large clusters of Covid-19 occurring aboard cruise ships in which thousands of passengers and crew were packed in close quarters.

Operators including Royal Caribbean, Norwegian Cruise Line and Carnival Corp have voluntarily extended their pause in operations from US ports until September.

Leavitt, Royal Caribbean chief executive officer Richard Thain and Norwegian Cruise Line CEO Frank Del Rio did not offer details on what protocols might be included in an industry restart, or whether recent spikes in US coronavirus cases may further extend the pause in operations. – Nampa/Reuters

Facebook, Twitter suspend data processing

Facebook Inc and Twitter Inc have suspended processing government requests for user data in Hong Kong, they said on Monday, following China's establishment of a new national security law for the semi-autonomous city.

Facebook, which also owns WhatsApp and Instagram, is pausing reviews for all of its services “pending further assessment of the National Security Law. Twitter said it had suspended all information requests from Hong Kong authorities immediately after the law went into effect last week, citing grave concerns about its implications.

The companies did not specify whether the suspensions would also apply to government requests for removals of user-generated content from its services in Hong Kong.

Social networks often apply localized restrictions to posts that violate local laws but not their own rules for acceptable speech. Facebook restricted 394 such pieces of content in Hong Kong in the second half of 2019.

Tech companies have long operated freely in Hong Kong, a regional financial hub where internet access has been unaffected by restrictions imposed in mainland China, which blocks Google, Twitter and Facebook. – Nampa/Reuters

Uber scoops up Postmates

Uber Technologies Inc said it would acquire Postmates Inc for US$2.65 billion to expand its food delivery market share and significantly increase the business of supplying everyday goods at a time when the coronavirus has pummelled its core ride-hailing service.

The all-stock deal, still subject to regulatory approval, would give Uber a roughly 30% share of the U.S. food delivery market, trailing only rival Door Dash, which commands some 45%, according to analytics firm Second Measure.

Uber said both companies' boards have approved the deal, for which Uber currently expects to issue some 84 million shares of common stock. Uber offered a premium of about 10% on Postmates' last valuation of US$2.4 billion.

Uber chief executive Dara Khosrowshahi told analysts the tie-up would allow Uber Eats to distinguish itself by delivering not only restaurant food, but everything from groceries to personal care and fashion items.

Uber has launched an option to send packages via its US ride-hail drivers during the pandemic and teamed up with grocery stores in several countries. The acquisition allows it to expand into Postmates' existing network in 4 200 US cities. - Nampa/Reuters

Ford bucking to take on Jeep

Ford Motor Co rolled out the product and marketing strategy for its new family of Bronco SUVs designed to take a bite out of Fiat Chrysler Automobiles' profitable Jeep franchise.

Ford's Bronco line-up, launching later this month, will include two- and four-door models, as well as a smaller Bronco Sport. The vehicles' boxy looks, their new bucking bronco logo, a "Bronco Nation" online fan club along with the "Built Wild" marketing campaign are all part of Ford's plan to muscle into the lucrative off-road adventure segment.

The new Bronco line up will offer off-roading technology aimed at people who want a comfortable ride on the highway, and who go off-roading on sand, gravel or dirt, not clambering over boulders, Ford chief operating officer Jim Farley said.

"We see our vehicle different than Wrangler," the Jeep model favoured by extreme off-road enthusiasts, Farley said."

Bronco's real mission is to boost profits as Ford strives to repay debt taken on to weather the coronavirus slowdown. – Nampa/Reuters

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Republikein 2024-11-16

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