COMPANY NEWS IN BRIEF

Toyota cuts output target

Toyota Motor Corp on Wednesday cut its annual production target by a half a million more vehicles as a chip shortage and Covid-19 sick leave crimped output.

It will build 8.5 million vehicles in the year to March 31, down from a previously estimated 9 million, the world's biggest carmaker said, as it posted a 21% fall in operating profit for the three months to Dec 31.

"We don't expect the imbalance in chip supplies to resolve quickly and the course of coronavirus pandemic is unclear," a Toyota official told reporters. "We think that uncertainty will continue into the next business year," he added.

Like other big global carmakers, Toyota, which expected to build 9.3 million vehicles across the world at the start of its business year, has been forced to cut output and as the Covid-19 pandemic wreaks havoc on the global supply chains. That has forced it to cut costs in a bid to squeeze out more profit per vehicle.

The effort to raise margins has been helped by robust demand in key markets such as China, the United States and Europe, allowing to raise prices and lower the incentives it pays to lure customers. -Reuters

Chipotle profits beat expectations

Chipotle Mexican Grill Inc beat Wall Street estimates for quarterly profits and comparable sales on Tuesday as higher demand and prices for its burritos and rice bowls helped the restaurant chain shrug off a knock from the Omicron variant.

Surging Covid-19 cases forced many restaurants to trim store hours amid a labour shortage, and rising costs caused other chains including McDonald's Corp and Starbucks Corp to miss profit estimates.

"We continue to see pressure on wages. We want to make sure that we continue to be competitive on that front," Chief Executive Officer Brian Niccol said during an earnings call. "Our restaurants are staffed better than they were pre-Covid-29."

Chipotle's move to introduce order-ahead drive-through lanes at more locations, as well as new menu items including smoked brisket, also helped cushion the blow. The chain reported adjusted earnings per share of US$5.58 versus estimates of US$5.25.

Higher-than-anticipated beef and freight costs prompted it to hike menu prices 4% in December, but the company has seen "no resistance" to higher prices, Niccol said. -Reuters

Boeing deliveries remain low

Boeing Co said on Tuesday it delivered 32 aircraft in January as its side lined 787 Dreamliner program continued to weigh on the plane maker’s ability to capitalize on a recovery in air travel.

The company handed over 27 737 MAX jets in January and three widebody aircraft, including a 777 freighter, Boeing said in its closely watched monthly report.

Of the 27 MAX deliveries, seven were to Irish budget carrier Ryanair, while China Eastern Airlines took delivery of one 777 freighter. Boeing handed over 38 jets in December and 34 in November.

The fewer January deliveries reflect a seasonal dip. Boeing delivered 26 aircraft in the same period a year ago. The 737 MAX and the 787 Dreamliner are crucial to Boeing's ability to recover from the pandemic and catch up with Airbus, having lost out on the delivery race to its European rival for the third consecutive year.

After slashing production mainly due to the pandemic, plane makers are seeing more demand for medium-haul passenger jets and freighters, and are rushing to ramp up production. -Reuters

Banco Bradesco profit down

Brazilian lender Banco Bradesco on Tuesday posted fourth-quarter net income slightly below analysts' estimates, but indicated a bright outlook for 2022 despite dim growth forecasts for Latin America's biggest economy.

Bradesco's recurring net income, which excludes one-off items, totalled 6.613 billion reais (US$1.26 billion), below a Refinitiv analyst consensus of 6.916 billion reais and down 2.8% from a year earlier, as operating costs jumped.

Return on equity was at 17.5%, or 2.5 percentage points down from the previous quarter. Despite Brazil's more challenging economic environment in 2022, Bradesco said its loan book is likely to keep growing by double digits.

Amid expectations of flat economic growth this year, or even a recession, Bradesco's credit portfolio should expand between 10% and 14% in 2022, below last year's growth, it said. Net interest income with clients is seen growing between 8% and 12%. -Reuters

Microsoft eyeing deal to buy Mandiant

Microsoft Corp is considering a deal to buy cybersecurity firm Mandiant Inc, Bloomberg News reported on Tuesday, citing a person familiar with the matter. The talks may not result in an offer, according to the report.

Shares of Mandiant rose more than 18%, while those of Microsoft were up 1.1% in late afternoon trading.

Mandiant became a standalone entity again last year when FireEye Inc which acquired the company in 2013, sold its products business and the FireEye name for US$1.2 billion to a consortium led by private-equity firm Symphony Technology Group.

Mandiant, which has a market capitalization of about US$3.6 billion, focuses on cyber-incident response and cybersecurity testing.

A deal to buy Mandiant would help Microsoft beef up its products that protect its clients from cybersecurity threats. The software giant bought two smaller cybersecurity companies in 2021 and said it would spend $20 billion on cybersecurity over the next five years. -Reuters