Written on July 28, 2011 by Maragaret Harrison
July 28, 2011 – FRANKFURT – Volkswagen predicted a significant rise in operating profits this year driven by strong demand around the world for its Audi and VW cars.
While that demand is expected to underpin strong sales volumes, VW again cautioned that high costs for raw materials as well as volatile interest and exchange rates, could put a squeeze on margins.
Volkswagen also said it was reviewing an alliance with Japan’s Suzuki <7269.T>, which was progressing slower than it had hoped, as it seeks to overtake Toyota <7203.T> as the world’s largest car maker by 2018.
Shares in The Wolfsburg, Germany-based company dropped after it unveiled a 59 percent rise in second-quarter operating profit to 3.17 billion euros. However, this fell short of the 3.22 billion consensus in a Reuters poll.
Max Warburton at Bernstein Research said: “While the second quarter did not show the advance that some of us were anticipating, profitability remains robust.”
Vehicle deliveries were up 15 percent in the quarter, boosted by the launch of a new Passat in China, the launch of the new Beetle in the U.S. an
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Written on July 26, 2011 by Douglas R
The number of new companies being set up is on the rise for a second consecutive year, up by 9.4 per cent to 396,000 over the year to March 2011.
According to accountant Wilkins Kennedy, the number of new companies setting up each year is now at its highest since before the credit crunch.
There were record falls in the number of incorporations during the recession, with the number of new companies established per year falling by 17 per cent from 450,000 in 2006/07 to 372,000 in 2007/8, followed by a drop of 11 per cent to 330,000 in 2008/9.
Wilkins Kennedy says that the continued improvement in business creation is partly a sign that entrepreneurs are willing to take the plunge, defying fears of a double-dip recession.
Kevin Walmsley, partner at the firm says, ‘There are early encouraging signs for the UK economy, which are in line with the cautious, but more optimistic mood that we’re seeing in the business community.
‘Despite continued economic uncertainty, there seems to be a consensus now in the UK that it is time to get on with business and bring new commercial ideas to life.’
Walmsley continues that starting a business remains ‘hugely challenging’ given how difficult it is to obtain funding.
‘Th
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Written on July 26, 2011 by Maragaret Harrison
NORTH COVENTRY — McCormick Chiropractic will be holding the 8th Annual Motorcycle Run on Saturday, July 30. Registration and breakfast will be at McCormick Chiropractic, 92 Kemp Road, North Coventry, beginning at 9 a.m.
Registration requires at least one new unwrapped toy. The drive will end at Child Life, Lehigh Valley Hospital, Allentown. Call McCormick Chiropractic at 610-705-0201 to sign up for the ride.
Sales, music announced at outlets
LIMERICK — Philadelphia Premium Outlets will hold an annual Back-to-School & Fall Preview Sale today through Monday, Aug 1. Shoppers will enjoy savings greater than 25 percent to 65 percent off at 150 designer and name brands stores as well as live entertainment via the Summer Music Series presented by Coca-Cola. Per
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Written on July 25, 2011 by Douglas R
The August 2 deadline for the U.S. federal debt crisis, when the government must pay its debts or default, is fast approaching. American consumers are monitoring the process and preparing for potential effects on their personal finances, according to the Boston Globe.
Unlike the national financial crisis of 2008, the major markets on Wall Street have not shown extreme strain in the face of this issue. However, the Globe reports that this is not necessarily a sign that the new crisis is less serious, noting that stock prices fell noticeably yesterday, July 27.
The likely consequences of an August 2 default will be damage to the retirement accounts and investments of American consumers due to the devaluation of U.S. stocks. Interest rates and borrowing costs tied to U.S. Treasury funds may well spike significantly, as well.
Cheryl Costa, managing director of AFW Wealth Advisors, warned against panic among consumers. Read more…
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Written on July 25, 2011 by Maragaret Harrison
July 26, 2011 – NEW YORK – General Electric Co has canceled plans to sell its railcar leasing business that could have fetched about $3 billion for the largest U.S. conglomerate, people familiar with the matter said on Tuesday.
It is at least the second time in the last three years that GE tried to sell the business and failed, indicating that financing a large leasing business remains challenging despite the improved credit conditions.
GE had hired Morgan Stanley earlier this year to find a buyer for the railcar leasing unit, as part of its continuing effort to trim its GE Capital unit.
GE officials did not immediately respond to a request for comment. Morgan Stanley declined to comment.
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Written on July 25, 2011 by Maragaret Harrison
Officials at First Niagara Financial Group, which earlier this year acquired New Haven, Conn.-based NewAlliance Bancshares, said July 21 the merger went smoothly but resulted in significant expenses that impacted First Niagara’s second-quarter earnings.
Buffalo, N.Y.-based First Niagara said its net income last quarter was $13.6 million, compared with $20 million in the second quarter of 2010.
Those figures represent GAAP earnings, meaning they conform to Generally Accepted Accounting Principals — an industry standard that is the commonly accepted way of reporting earnings.
Bank officials noted the second quarters of both 2010 and this year “reflect significant acquisition, integration and restructuring expenses.” First Niagara completed its acquisition of NewAlliance in April.
The NewAlliance deal was the company’s largest merger to date, First Niagara Chief Financial Officer Gregory Norwood said in a conference call with investors.
Even with those expenses, however, bank officials said the second quarter was an encouraging one.
“It’s another solid quarter,” First Niagara President and CEO John Koelmel said in the call with investors.
“While our New England team successfully completed the NewAlliance conversion, seamlessly converting 350,000 customer accounts in Connecticut and Massachusetts, our continuing focus on our customers and all of the markets we serve again resulted in very strong loan and deposit growth,” Koelmel said.
As of June 30, First Niagara had about $31 billion in assets and $19 billion in deposits. T
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