Company news in brief
Vodacom launches commercial 5G in SA
Mobile operator Vodacom Group said on Monday it had switched on Africa's first live 5G mobile network in three cities in South Africa, with further rollouts planned in other parts of the country.
Vodacom was recently assigned temporary additional spectrum by South Africa's telecoms regulator for the duration of a national state of disaster to tackle the coronavirus pandemic, which has been used to fast track its 5G launch, the company said in a statement.
The deployment of 5G will help Vodacom manage the 40% increase in mobile network traffic and the 250% increase in fixed traffic experienced during the five-week long coronavirus lockdown, it said.
The lockdown has resulted in a spike in online activity, from video conferencing to streaming movies.
The three cities are Johannesburg, Pretoria and Cape Town, Vodacom said, adding the 5G network would support both mobile and fixed wireless services. – Nampa/Reuters
Imperial Logistics sells shipping business
Imperial Logistics said on Monday it would sell its European shipping business to Germany's Häfen und Güterverkehr Köln AG for an enterprise value of 225 million euro (US$246 million) as it overhauls its operations.
CEO Mohammed Akoojee has drawn up a further restructuring and rationalisation plan for the group that includes exiting unprofitable contracts, consolidating operations and properties and reducing fleet and overheads.
The South African ground freight firm is also considering further disposals of businesses under its international division in the short to medium term.
"The core strategic focus of Imperial is to grow our African footprint and reach and align our international portfolio to position the group as the 'gateway to Africa' in the medium to long term," it said in a statement.
Imperial, which traces its roots to a single car showroom in Johannesburg in the 1940s, said its South American shipping business will be continued on a stand-alone basis but will remain available for sale. – Nampa/Reuters
Total keeps dividend stable
French energy major Total kept its dividend stable despite a sharp fall in first-quarter net adjusted profit, hit by the impact of the coronavirus outbreak and deep falls in the oil price.
To preserve cash as the industry suffers a collapse in demand, some peers have halted shareholder payouts. Royal Dutch Shell last week said it was cutting its dividend for the first time since World War II.
But Total said it was keeping its first quarter interim dividend stable at 0.66 euro per share and it would be paid in cash exclusively.
The company's net adjusted profit fell 35% to US$1.78 billion, but beat analysts' forecasts.
Total said that as oil prices fell by more than 30% on average in the quarter, its cash flow slumped by 31% year-on-year to US$4.5 billion.
The company said yesterday it will reduce its investments further to US$14 billion in 2020, while increasing cost savings to more than US$1 billion. – Nampa/Reuters
Ferrari slowed by coronavirus
Luxury sports car maker Ferrari still expects to make more than US$1 billion in core profit this year, providing a relative beacon of stability in an auto industry ravaged by the coronavirus crisis.
The company, known for its red Formula One racing cars and its prancing horse logo, cut its 2020 core earnings forecast on Monday, blaming a hit to motor sport revenues among other pressures, and warning of an extremely tough second quarter.
But the Italian firm said it still expected to generate free cash flow this year, and its guidance contrasted with others in the industry - including US electric carmaker Tesla, Germany's Daimler and Porsche-owner Volkswagen - which have all suspended forecasting.
Ferrari, which on Monday restarted operations at its plants in Maranello and Modena, predicted a "harsh" reduction of revenues linked to Formula One, where races have been suspended, as well as reduced turnover from brand projects and lower engine shipments to Maserati.
"Second quarter will be very weak," chief executive Louis Camilleri told analysts, as the company said it now expected adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) this year to edge down from 2019 levels to 1.05-1.20 billion euro. – Nampa/Reuters
Boeing raises billions in debt sale
Boeing Co raised US$25 billion in a bond offering on Thursday, a blowout result for the planemaker, which it said helped the company avoid taking government aid during the coronavirus-induced travel downturn.
Boeing's capital raise is the sixth-largest investment-grade bond offering of all time and the biggest year-to-date, according to Refinitiv data.
The planemaker has been trying to bring its 737 MAX jet back into service after two fatal crashes, while the coronavirus pandemic has hammered aviation and other industries. Business shutdowns around the world to curb the outbreak have dried up demand for air travel.
Following the bigger-than-expected bond offering, Boeing, which had been weighing seeking government aid, said it had no further plans to raise funds.
Boeing said last week it would cut its 160 000-person workforce by about 10%, further reduce 787 Dreamliner production and try to boost liquidity as it prepares for a years-long industry recovery from the pandemic, which drove its second consecutive quarterly loss. – Nampa/Reuters
Mobile operator Vodacom Group said on Monday it had switched on Africa's first live 5G mobile network in three cities in South Africa, with further rollouts planned in other parts of the country.
Vodacom was recently assigned temporary additional spectrum by South Africa's telecoms regulator for the duration of a national state of disaster to tackle the coronavirus pandemic, which has been used to fast track its 5G launch, the company said in a statement.
The deployment of 5G will help Vodacom manage the 40% increase in mobile network traffic and the 250% increase in fixed traffic experienced during the five-week long coronavirus lockdown, it said.
The lockdown has resulted in a spike in online activity, from video conferencing to streaming movies.
The three cities are Johannesburg, Pretoria and Cape Town, Vodacom said, adding the 5G network would support both mobile and fixed wireless services. – Nampa/Reuters
Imperial Logistics sells shipping business
Imperial Logistics said on Monday it would sell its European shipping business to Germany's Häfen und Güterverkehr Köln AG for an enterprise value of 225 million euro (US$246 million) as it overhauls its operations.
CEO Mohammed Akoojee has drawn up a further restructuring and rationalisation plan for the group that includes exiting unprofitable contracts, consolidating operations and properties and reducing fleet and overheads.
The South African ground freight firm is also considering further disposals of businesses under its international division in the short to medium term.
"The core strategic focus of Imperial is to grow our African footprint and reach and align our international portfolio to position the group as the 'gateway to Africa' in the medium to long term," it said in a statement.
Imperial, which traces its roots to a single car showroom in Johannesburg in the 1940s, said its South American shipping business will be continued on a stand-alone basis but will remain available for sale. – Nampa/Reuters
Total keeps dividend stable
French energy major Total kept its dividend stable despite a sharp fall in first-quarter net adjusted profit, hit by the impact of the coronavirus outbreak and deep falls in the oil price.
To preserve cash as the industry suffers a collapse in demand, some peers have halted shareholder payouts. Royal Dutch Shell last week said it was cutting its dividend for the first time since World War II.
But Total said it was keeping its first quarter interim dividend stable at 0.66 euro per share and it would be paid in cash exclusively.
The company's net adjusted profit fell 35% to US$1.78 billion, but beat analysts' forecasts.
Total said that as oil prices fell by more than 30% on average in the quarter, its cash flow slumped by 31% year-on-year to US$4.5 billion.
The company said yesterday it will reduce its investments further to US$14 billion in 2020, while increasing cost savings to more than US$1 billion. – Nampa/Reuters
Ferrari slowed by coronavirus
Luxury sports car maker Ferrari still expects to make more than US$1 billion in core profit this year, providing a relative beacon of stability in an auto industry ravaged by the coronavirus crisis.
The company, known for its red Formula One racing cars and its prancing horse logo, cut its 2020 core earnings forecast on Monday, blaming a hit to motor sport revenues among other pressures, and warning of an extremely tough second quarter.
But the Italian firm said it still expected to generate free cash flow this year, and its guidance contrasted with others in the industry - including US electric carmaker Tesla, Germany's Daimler and Porsche-owner Volkswagen - which have all suspended forecasting.
Ferrari, which on Monday restarted operations at its plants in Maranello and Modena, predicted a "harsh" reduction of revenues linked to Formula One, where races have been suspended, as well as reduced turnover from brand projects and lower engine shipments to Maserati.
"Second quarter will be very weak," chief executive Louis Camilleri told analysts, as the company said it now expected adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) this year to edge down from 2019 levels to 1.05-1.20 billion euro. – Nampa/Reuters
Boeing raises billions in debt sale
Boeing Co raised US$25 billion in a bond offering on Thursday, a blowout result for the planemaker, which it said helped the company avoid taking government aid during the coronavirus-induced travel downturn.
Boeing's capital raise is the sixth-largest investment-grade bond offering of all time and the biggest year-to-date, according to Refinitiv data.
The planemaker has been trying to bring its 737 MAX jet back into service after two fatal crashes, while the coronavirus pandemic has hammered aviation and other industries. Business shutdowns around the world to curb the outbreak have dried up demand for air travel.
Following the bigger-than-expected bond offering, Boeing, which had been weighing seeking government aid, said it had no further plans to raise funds.
Boeing said last week it would cut its 160 000-person workforce by about 10%, further reduce 787 Dreamliner production and try to boost liquidity as it prepares for a years-long industry recovery from the pandemic, which drove its second consecutive quarterly loss. – Nampa/Reuters
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