21 minutes ago
Vodafone Warns of Likely Coronavirus Hit
Vodafone Group PLC said Tuesday that it expects a significant economic impact from coronavirus in its markets in fiscal 2021 and that it won’t be immune to challenges posed by the pandemic, as it reported a swing to a pretax profit for fiscal 2020.
The U.K. telecommunications group said it wasn’t able to provide guidance on adjusted earnings before interest, taxes, depreciation and amortization for the year ahead given uncertainties. Based on its current assessments, adjusted Ebitda might be flat to slightly down in fiscal 2021 compared with a rebased fiscal 2020 baseline, Vodafone said.
For the year ended March 31, the company made a pretax profit of €795 million ($860.5 million) compared with a loss of €2.61 billion a year earlier, when it booked a loss over the sale of its Indian arm and wrote down the value of some of its assets. The company posted a narrowed net loss of €920 million compared with €8.02 billion a year before.
45 minutes ago
Thyssenkrupp Faces More Than $1 Billion Loss
Thyssenkrupp AG said Tuesday that its net loss for the second quarter widened amid the coronavirus pandemic, and warned of a hit to its results next quarter.
The German industrial conglomerate reported a net loss of €948 million euros ($1.03 billion) for the quarter ended March 31 compared with a loss of €173 million the same period a year earlier.
Quarterly net sales fell to €10.11 billion from €10.64 billion, while orders declined 8% to €9.54 billion for the period.
The company said adjusted earnings before interest and taxes fell to a loss of €80 million from a positive of €240 million year-prior.
1 hour ago
Ryanair Sets Timetable to Resume Flights
Ryanair Holdings PLC said it would restart operations with 1,000 flights a day from July 1 as Europe’s biggest carrier by traffic plots a recovery from a collapse in demand of the coronavirus pandemic.
The daily number of flights, which represents around 40% of its regular schedule, will prioritize destinations over frequencies. Ryanair said it is set to operate from most of its 80 bases across Europe. The return to service relies on European governments relaxing restrictions on intra-European Union travel, it said.
New health measures will affect checked bag allowances, require passengers to check-in online, undergo temperature checks on entering the airport and wear face masks at all times in the terminal and onboard the aircraft. Queuing for toilets will also be prohibited and in-flight food services will be limited.
The discount carrier has been operating a skeleton 30 daily flights since mid-March.
1 hour ago
Aramco to Cut Spending as Profit Falls
State oil giant Saudi Aramco said Tuesday it would cut spending this year as its profit in the first quarter fell sharply on a historic oil-price rout, amplified by the novel coronavirus pandemic.
The Saudi Arabian Oil Co., as the company is formally known, said net profit fell 25% to 62.5 billion riyals ($16.7 billion), down from $22.2 billion a year earlier. Its revenue in the same period fell 16% year-on-year to $60 billion.
The oil firm expects capital spending between $25 billion and $30 billion this year, down from $32.8 billion a year earlier. Brent crude, the global benchmark, is down more than half this year, trading Tuesday at roughly $30 per barrel.
Oil prices in part tumbled this year because Saudi Crown Prince Mohammed bin Salman–the kingdom’s day-to-day ruler–in March waged an oil-price war with Russia, pledging to flood the market with crude just as the novel coronavirus locked down economies.
The kingdom later agreed an output cut with several other major oil-producing countries, including Russia and the U.S., but that has failed to lift prices substantially.
2 hours ago
Public Pension-Fund Losses Set Record in First Quarter
Public pension plans lost a median 13.2% in the three months ended March 31, according to Wilshire Trust Universe Comparison Service data released Tuesday, slightly more than in the fourth quarter of 2008. March’s stock market plummet led to the biggest one-quarter drop in the 40 years the firm has been tracking.
“It was a horrible quarter for all public funds,” said Chicago Teachers’ Pension Fund Investment Chief Angela Miller-May.
Stocks bounced back in April, making up a significant chunk of the losses. But absent a full and speedy recovery, pension losses are poised to drive up already-burdensome retirement costs for governments.
“There will be a lot of pressure to cut benefits,” said Don Boyd, co-director of the State and Local Government Finance Project at the University at Albany’s Rockefeller College.
State and local governments “are trying to figure out how to not cut school aid too deeply, not cut Medicaid too deeply, not raise taxes,” Mr. Boyd said. “Pension contributions are pretty far down the list of things they want to pay for.”
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Last Updated: May 12, 2020 at 4:26 am ET