Written By Unknown on Kamis, 08 Januari 2015 | 16.01
Strong smartphone competition is set to push annual profits down for the first time in three years at Samsung Electronics.
The South Korean firm forecast a 32% fall in operating profit to $22.6bn (£15bn), ahead of the publication of its financial results later this month when it will also give a breakdown on the performance.
Fourth quarter profits were expected to drop 37% from a year earlier - with analysts suggesting the figure could have been worse but for strong demand for memory chips within its semiconductor division.
Total quarterly sales dropped 12%.
Samsung is hunting new revenue streams from the so-called Internet of Things - connectivity with everyday electronic items - to reduce its recent reliance on smartphones.
It had previously pledged that by 2017 all Samsung televisions would be Internet connected and that within five years all Samsung hardware products would be ready for the Internet of Things.
The company is taking its software, which is designed to challenge Google's Android operating system, to television sets.
Samsung said its all-new internet-connected televisions this year will run on Tizen, its own operating system.
Its Galaxy smartphones led the market in 2012 and 2013, pushing past Nokia, Motorola and Apple in terms of sales volume.
But that growth ground to a halt last year as its new models disappointed and it was squeezed on price in the low and mid-end phone markets by Chinese smartphone makers such as Xiaomi, which overtook Samsung in China and India.
Samsung responded by saying it was to reduce the number of models it produces to lower costs and help boost innovation.
Marks and Spencer has revealed a sharp drop in clothing, gifts and homewear over Christmas, as it held back on discounting and suffered online delivery woes.
The retailer also blamed an unseasonably warm autumn for a weak clothing performance as it outlined a 5.8% slump in like-for-like sales in its general merchandise division during the 13 weeks to 27 December.
M&S, which insisted its winter clothing range was well received, said disruption at its Castle Donington online distribution centre hurt its performance in December.
The company added: "We deliberately held back the level of discounting, especially in December.
"While this had an adverse impact on sales we delivered a good performance on gross margin."
Marc Bolland remains under pressure over the M&S non-food offering
The retailer had also previously warned that it would take time for its new website, which required members to re-register, to bed in but said it had performed well.
Its food division - which has been a consistent performer - delivered record sales growth of 17% over Christmas week but rose only 0.1% in the quarter.
Analysts had forecast an increase of 0.9% and its share price fell 3% when trading began on the FTSE 100.
Chief executive Marc Bolland said: "M&S had a very good Christmas in Food.
"We delivered record Christmas sales, strongly outperforming the market.
"We had a difficult quarter in General Merchandise, dominated by unseasonal conditions and an unsatisfactory performance in our e-commerce distribution centre.
"We maintained our focus on General Merchandise gross margin, with guidance unchanged."
Tesco has confirmed it is to close 43 unprofitable UK stores and halt construction on almost 50 others as part of a plan to revive its fortunes.
In the wake of four profit warnings last year and the accounting scandal which saw group chief executive Dave Lewis take charge of the UK business, Tesco said it had enjoyed a good Christmas.
Like-for-like sales fell just 0.3% in the six weeks over Christmas - better than analysts predicted - however like-for-like sales in its third quarter were down 2.9%.
But Tesco's sales woes - a result of a lack of focus on its core store offering in the past and the strong challenge from discounters - are only part of the problem for Mr Lewis.
He used the trading update to confirm a number of changes in order to ensure no repeat of the £263m profit over-statement - including new guidelines for supplier negotiations - and outlined plans to streamline the business.
Its head office in Cheshunt is to close in 2016 while it confirmed the sale of Tesco Broadband and Blinkbox, the video steaming service, to TalkTalk.
Options were being explored for Dunnhumby, the unit which manages its Clubcard loyalty scheme, signalling a likely sale process which could value it at up to £2bn.
Tesco did not disclose the locations of the 43 stores to close but Mr Lewis revealed that a "significant proportion" would be Tesco Express convenience shops.
Changes to store management and working-hour flexibility structures would deliver savings of £230m annually but result in a one-off cost of £300m, Tesco said.
It also plans to close the company defined benefit pension scheme to staff but said colleagues would soon be offered turnaround-based bonuses.
Tesco confirmed too that it had poached Halfords boss Matt Davies to run the UK business but he would not be able to start work until 1 June.
The announcements were cheered by investors, with Tesco's share price - having taken a battering last year - rising more than 5% in early trading on the FTSE 100.
On the shop floor, Tesco joined the New Year price war with major rivals by cutting prices from today on hundreds of branded products.
It said the move, resulting in average savings of 25% on brands such as Hovis, Coca-Cola, Marmite and Tetley, was a response to "demands from customers for simpler, lower and more stable prices."
Commenting on the Christmas sales performance, Mr Lewis said: "We are seeing the benefits of listening to our customers.
"The investments we are making in service, availability and selectively in price are already resulting in a better shopping experience.
"A broad-based improvement has built gradually through the third quarter, leading to a strong Christmas trading performance.
"In difficult circumstances the team has begun the challenging task of reinvigorating our business. There is more to do but we have taken the first important steps in the right direction.
"We have some very difficult changes to make. I am very conscious that the consequences of these changes are significant for all stakeholders in our business but we are facing the reality of the situation.
"Our recent performance gives us confidence that when we pull together and put the customer first we can deliver the right results."
Written By Unknown on Rabu, 07 Januari 2015 | 16.01
Sainsbury's and Asda have announced details of price cuts as their rival Tesco prepares to unveil its turnaround plan.
Asda was first to confirm it was making £300m in customer savings during the first three months of the year, saying it was part of a previously announced £1bn drive to help it close the gap with hard discounters which have been eating away at the dominance of the 'Big Four' chains.
Asda, which reported its worst quarterly sales performance in nearly a decade in November, said the cost of 2,500 "essentials" would fall.
Sainsbury's later said it was to implement price cuts on 1,000 of its most popular products, costing it £150m, and customers would see more than 700 new regular prices in supermarkets this week.
Both chains, along with market leader Tesco and Morrisons, have seen customers drip away to the likes of Aldi and Lidl at the lower end of the price spectrum while Waitrose has captured some of the better off.
Asda's chief merchandising officer for food, Barry Williams, said: "After a great Christmas with the family, January is the month we all start looking at the size of our waists and our wallets.
"We're going further than ever before, rolling back those every day, can't live without items at a bigger percentage than we've ever been able to do previously.
"With hundreds of products at 50p, and even more at 15% less than normal, we're aiming to make a big difference for families in their weekly shop."
Sainsbury's chief executive Mike Coupe said: "We are investing £150m per year for the next three years in some of our customers' most popular purchases, with a total of 1,000 prices cut since we announced this investment in November.
"This will come as welcome news to customers who might be feeling the pinch after Christmas.
"These lower everyday prices are a part of our ongoing commitment to offering our customers great quality products at great prices."
The announcements were made less than 48-hours before Tesco's chief executive was expected to outline a recovery plan for its UK business.
While its supermarkets remain the dominant force in the grocery market, Tesco was slow to counter the discount threat and it has since lost further market value as a result of its £263m profits overstatement, which remains the subject of several investigations.
Sainsbury's has reported a 1.7% fall in like-for-like sales over its Christmas quarter - the worst performance for a decade.
The chain, which like its main 'Big Four' competitors has been losing business to hard discounters at the bottom and Waitrose at the top end, said like-for-like sales were down 3.9% when the effects of fuel sales were included.
Total sales fell by just 0.4% - reflecting the impact of its growing convenience store network in the past 12 months.
But the company warned that the outlook remained challenging, given the squeeze on the middle market, with the fall in food prices likely to continue.
The supermarket chain had confirmed on Monday that it was implementing cuts on 700 products this week to help counter the discount threat.
Sainsbury's said it enjoyed a record-breaking week before Christmas with 29.5 million customer transactions.
Chief executive Mike Coupe told Sky News that Sainsbury's had sold "the same amount of stuff we sold last year (at Christmas), but the prices were lower".
His statement said: "Sainsbury's has provided a great Christmas for our customers.
"Food price deflation and falling fuel prices have enabled our customers to treat themselves over the festive period."
The chain said its Taste the Difference range grew by five per cent year-on-year in the period with sales of its Conegliano Prosecco rising by more than 30%.
It sold over 57 million mince pies and over 550,000 turkeys, up 8% on last year.
The energy industry has insisted it is passing on to consumers sharp falls in wholesale oil and gas costs after the Government said firms were being watched "like hawks."
The body representing household suppliers spoke up after the Chancellor confirmed a review of pricing in areas such as motor fuel, air fares and utilities.
A Treasury spokesman said: "The Government is conducting studies of industries like the utilities and the airlines.
"We are examining if any action needs to be taken."
The cost of a barrel of Brent crude is currently hovering slightly above $50 - after falling below that figure for the first time since 2009 in early trading on Wednesday.
Video:Why Has The Price Of Oil Plummeted?
Prices have fallen more than 50% in just three months because of a glut in supply and shrinking demand due to fears over the outlook for world economic growth.
While George Osborne welcomed further falls in fuel pump costs recently, he said it was vital that the slump in the oil price was passed on to households.
Energy UK, which represents the so-called 'Big Six' household firms including British Gas, insisted families were benefiting in full.
Its chief executive Lawrence Slade said: "Energy suppliers are passing on price cuts to customers.
"When people shop around they can easily find deals that are over £100 cheaper than this time last year and in line with cuts in wholesale energy prices."
Firms have argued that because they have to buy raw energy up to three years in advance, they can not simply cut bills by 50%.
Video:OPEC Domination 'Is Over'
They point out that the wholesale cost now makes up less than half of the total bill - with other network charges rising sharply in recent years.
But the price comparison website, uSwitch, accused firms of failing customers on standard tariffs.
Whilst quick to pass on rising costs, the big six energy suppliers are yet to reduce bills for the majority of their customers who are on standard tariffs.
Its energy spokesman Tom Lyon said: "It's now high time for one of the 'Big Six' to cut their standard prices and help hard-pressed households, and lay down the gauntlet to the others to do the same.
"With the average bill now an eye-watering £1,265 – 168% higher than a decade ago – it's little wonder that energy costs top consumers' concerns."
The energy secretary Ed Davey said: "The Government will be watching energy companies like hawks to ensure falls in wholesale gas prices are passed on as quickly as possible to consumers."
Video:Crude Volatility Fuels Unease
The sector is already the subject of an investigation by the Competition and Markets Authority which could decide to break up firms which both produce energy and supply it to homes.
Labour insisted the Government was to blame for the lack of clarity on bills.
Shadow energy secretary Caroline Flint said: "The Tories have had five years to deal with the problem of energy companies not passing on reductions in wholesale costs and have done absolutely nothing about it.
"Labour has consistently said that the regulator should have the power to force energy companies to cut their prices when wholesale costs fall.
"We need action, not another inquiry. If this Government won't put an end to rip-off energy bills and give the regulator the power to cut prices, then the next Labour Government will."
Written By Unknown on Selasa, 06 Januari 2015 | 16.01
Rolls-Royce sold more cars than ever before last year.
The company delivered 4,063 cars in 2014 - its highest total in 111 years.
A 12% increase on 2013 means sales have now risen five-fold since 2009.
In 2014 sales rose 13% in the UK, 75% in Australia, 60% in Japan, 40% in Europe as a whole, 30% in the USA and 20% in the Middle East.
The best-selling dealership was in Abu Dhabi - though the US remains the company's biggest market, followed by mainland China.
Sales were boosted by orders for the Ghost Series II launched in November. The Wraith also enjoyed its first full year on the market.
The company has created 200 permanent jobs in 18 months, meaning more than 1,500 people now work at its Goodwood headquarters in West Sussex.
Business Secretary Vince Cable said: "Rolls-Royce motor cars are famous throughout the world with increasing numbers now exported abroad. The skill and dedication of its workers here in Britain has led to another very successful year.
The US remains the company's biggest market, followed by mainland China
"The UK's automotive industry is thriving with a new car rolling off the production line every 20 seconds, and increasing levels of investment that's helping to secure local jobs.
"Through our industrial strategy we are backing companies like Rolls-Royce as they go from strength to strength, giving them the right environment to invest with confidence and create high-skilled jobs."
The Rolls-Royce figures precede statistics from the Society of Motor Manufacturers and Traders that are expected to show new-car sales in the UK reached a 10-year high of 2.46 million in 2014.
Rolls-Royce Motor Cars chief executive Torsten Muller-Otvos said: "This fifth consecutive record year saw Rolls-Royce Motor Cars break through the 4,000 car sales level for the first time in its history.
"The result confirms that our strategy of balanced, sustainable and profitable growth is delivering and that Rolls-Royce remains the world's leading luxury goods brand."
Rangers has rejected an American financier's £18m bid to take a controlling interest in the club, on value grounds, as it seeks to avoid financial collapse.
Robert Sarver, behind the Phoenix Suns basketball team, had offered an additional sum to buy out existing shareholders should a deal have been agreed.
The Scottish Championship club added that its directors did not believe it was necessary to hold a general meeting, as Mr Sarver had proposed, to discuss the offer.
Its statement to the stock exchange said: "The Board of Rangers has considered the possible offer from Robert Sarver.
"The proposal by Mr Sarver comprises a placing of 100 million shares at 18p ("Placing") which, if approved by shareholders at a general meeting, would be immediately followed by an unconditional offer at 18p pursuant to Rule 9 of the Code.
"The Placing would give Mr Sarver control of Rangers.
While the Directors welcome Mr Sarver's approach, they believe that, notwithstanding the current financial difficulties, the proposal does not adequately value a controlling interest in the Company and accordingly the resolution to approve the placing is unlikely to achieve the 75% majority required.
"The Directors do not intend to hold the General Meeting which would be necessary to implement the proposal.
The Company is managing its cash resources carefully and will require further funding before the end of January.
"The Directors are in discussions with Rangers' significant stakeholders with a view to arranging finance for the Club.
"This is likely to comprise loans in the short term and possibly equity in the medium term.
"The board has invited Mr Sarver to consider participating in a similar discussion alongside other supportive shareholders."
Rangers, demoted to the fourth tier of Scottish football in 2012 because of financial difficulties, has struggled ever since to return to financial strength despite the team recovering to a current second in the Championship.
Only yesterday the club accepted an emergency loan of £500,000 from its chairman Sandy Easdale to remain afloat.
Other major shareholders include Sports Direct founder and Newcastle United owner Mike Ashley, who has already provided sizeable loans, but his interests in the club remain subject to strict rules on dual-ownership.
The head of Sony has called the cyberattack which derailed the release of comedy The Interview "vicious and malicious" in his first public comments about the devastating hack.
Chief executive Kazuo Hirai thanked the company's supporters and praised those who stood up to the hackers.
"Freedom of speech, freedom of expression, freedom of association - those are important lifelines of Sony and our entertainment business," Mr Hirai said at the Consumer Electronics Show in Las Vegas.
"I am very proud of all the employees and the partners we've worked with as well who stood up against some of the extortionate efforts of the criminals that attacked Sony Pictures and its employees."
Mr Hirai, speaking in Las Vegas, described the attack was "malicious"
Sony employees, he added "were victims of one of the most vicious and malicious cyberattacks we have known, certainly in recent history".
The Interview, starring Seth Rogen and James Franco, is now showing in hundreds of cinemas in the US, in addition to online platforms.
Video:Sony Hack Timeline
"I want to thank all the partners who made this possible, media who supported the launch, and those who have gone out to see the movie," Mr Hirai said.
"Thank you for being part of that great event," he added, before ending with a quip referring to another Sony Pictures Entertainment film released during holidays: "Annie is a great movie as well."
The attack on the Japanese company's film and television unit led to an online leak of employee information, unreleased films and embarrassing in-house emails.
The hackers also mounted threats against Sony over the planned Christmas release of The Interview, which depicts a fictional CIA plot to assassinate North Korean leader Kim Jong-Un.
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Gallery: 'The Interview' Film Pulled: Hollywood Takes to Twitter
Written By Unknown on Senin, 05 Januari 2015 | 16.01
By Mark Kleinman, City Editor
The Anglo-South African financial services group Investec has joined a cluster of international banks eyeing bids for the international arm of Coutts, the wealth manager whose customers include Her Majesty The Queen.
Sky News understands that Investec is among at least half a dozen parties to have expressed interest in buying Coutts International, which has been put up for sale by its owner, Royal Bank of Scotland (RBS).
Coutts International is expected to change hands during the course of 2015, having been identified as non-core by Ross McEwan, RBS' chief executive.
The sale will form part of a wider retrenchment from the global empire-building which became the hallmark of Fred Goodwin, the former RBS boss who took the Coutts brand to mainland China in an attempt to tap demand from the country's fast-growing middle classes.
It is unclear exactly how much the Coutts International business is worth, although analysts have speculated that it could fetch between £500m and £650m.
Video:Coutts CIO On European economy
A sale will not include a licence to use the famous wealth management brand, which will remain attached to Coutts' UK operations.
RBS is retaining the domestic franchise, which is among the world's oldest private banks, with a heritage dating back to the late 17th century.
Investec, which is understood to have hired advisers to help it plot a takeover, has been expanding its wealth management activities rapidly in recent years, with profits rising sharply as a result.
It will face stiff competition for the Coutts International unit, however.
The Singaporean bank DBS and French lender Societe Generale are in talks to team up to buy the business and carve it up along geographical lines.
Other bidders are said to include Intesa Sanpaolo, the Italian bank, Brazil's BTG Pactual, and Julius Baer, the Swiss private bank.
Goldman Sachs, the investment bank, is overseeing the auction.
