Posts tagged ‘Economic News’

Today, Reuters sends me quarterly report news from major industries in America and Worldwide. Here are some conclusions for you. For further information, you can visit Reuters to read full information.
Those quarterly reported from worldwide companies showed that global crisis attacked all business.

General Electric Company Quarterly report
Bad economic environment impacted General motor to book good result in balance sheet. Forth quarter is worst but there are hopes. 44 percent profit loss in forth quarter. Profit was $3.72 billion if we compare with last earlier report, General Electric booked $6.7 billion. Declining on profit rose as lowering revenue. General Electric revenue downed to $46.21 or 4.8 percent compared than previous revenue. In New York Stock Exchange, GE share closed at $12.77 or 5.3 percent declining from $13.48

Samsung Quarterly Report
Oversupply and low demand on electronic goods are two factors causing poor financial report especially on Chips and LCD Screen. Analysts predicted that in first report on this year will worse due the reasons for Samsung Chips and LCD, slower economic recovery and lower purchasing power are the reasons.

Profit declined is significant and they predicted the trend will show worse in first report on this year. Although sales rose 5.5 percent to 18.45 trillion won but high operating loss makes it nothing because due the crisis there were massive prices for chips and LCD.
Overall in range October – December Samsung booked $682 billion of operating loss due the ravaging chips and LCD prices.
According to Reuters, Samsung’s October-December net loss was 22.2 billion won, compared with profits of 2.21 trillion won a year ago and 1.22 trillion won in the previous quarter.

Xerox Corp Quarterly Report
Based on lower sales and high restructuring cost, Xerox revenue downed 10 percent to $4.37 billion, post sale revenue also fell to $3.1 billion or 8 percent, equipment sale revenue fell 15 percent to $1.3 billion. Massive fallen on sales revenue is caused by weakness economic condition. Xerox as leading producer and supplier of digital printer, document management services, services and supplier for printing machine booked $1 million net income in forth quarter.

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Retailers in the United States during this year are beginning complicated in big problems. Starting next month, they faced a problem in the closing outlets, bankruptcy, and corporate takeovers due the significantly decline on their sales during the holiday season is the worst figure in the last 40 years.

Based on data from the International Council of Shopping Centers (ICSC), estimated, the Retailers will close retail outlets around 73,000 in the first quarter 2009. Talbot’s Inc. and Sears Holdings Corp. are a few companies will close some stores in several locations with lowest sales rate. In addition, more than dozen retailers, including the Circuit City Stores Inc., Linens N Things Inc., Sharper Image Corp., and Steve & Barry’s LLC are in bankruptcy protection (bankruptcy protection) in this year as the restriction on credit from FED and the companies become more careful agaisnt profit loss as impact on their low sales.

According to Burt Flickinger, Manager Director of Strategic Resource Group, investors will see retailers whom seeking bankruptcy protection in February when financial reported is launched. “You will see many department stores, specialty stores, discount stores, wholesale stores, drug store, and others, both national and multinational companies, will be out of business. The amount will rise to new concerns,” said Flickinger. By using data from the Bureau of Labor Statistics, ICSC also predicts, 148,000 stores already closed in 2008. Largest since 2001 where 151,000 stores were closed. According to the ICSC Chief Economist Michael Niemira, percentage of store growth will decrease 3 percent this year. In addition,  total outlets spread in any locations have the same conditions. Niemira says, about 73,000 locations also will be closed in the first quarter 2009. However, difficulties conditions by the retailers to provide benefits to the consumers. “If you shop, you may find discounts on many products,” said Patrick McKeever, a senior equity Analyst MKM Partners LLC. This strategy- to discount any goods is to increase their sales but so far the result showed the bad results. Read more »