Sunday, 13 Jun 2021

LG Electronics profit falls 31% on year

Peugeot owner in merger talks with Fiat Chrysler

The French owner of the Peugeot and Vauxhall brands is in talks with Fiat Chrysler Automobiles (FCA) pursuing a merger that would create one of the world’s biggest carmakers.

PSA Group on Wednesday confirmed the existence of the talks, which come only months after a failed merger attempt between FCA and PSA’s French rival Renault.

FCA has long pursued greater consolidation in the car industry, with leaders of the Italian-American carmaker past and present keen to pool resources. Carmakers across the world are grappling with one of the biggest and most expensive upheavals in the industry’s history as they move away from fossil fuels and towards battery electric vehicles and autonomous technology.

Shares in Fiat Chrysler, which trade on the New York Stock Exchange, jumped 7.6% on Tuesday night after the Wall Street Journal reported that talks were under way.

In a brief statement, PSA Group said: “PSA Group confirms that discussions are in progress with the aim of creating one of the world’s principal automotive groups.”

A deal between PSA and FCA would still face obstacles, however. The talks between FCA and Renault fell through in June, with the carmakers blaming the intervention of the French government, Renault’s largest shareholder.

Thailand's sugarcane oversupply sends prices south

Oversupply, strength of Thai baht affects Thailand’s sugarcane industry leading to expected loss of $329m this season.

    Thailand’s sugarcane farmers are hurting as an oversupply last year has driven prices down.

    That’s compounded by the strength of the Thai baht, which has increased costs for the industry.

    And China, a traditional market, is now protecting its own sugarcane farmers.

    Al Jazeera’s Wayne Hay reports from Udon Thani, Thailand.

    World Series Game 7, California wildfires: 5 things you need to know Wednesday

    Finally, the World Series theater everyone craved: Game 7

    The Washington Nationals defeated the Houston Astros behind Stephen Strasburg’s memorable performance, setting up a dramatic World Series Game 7 on Wednesday night (8 p.m. ET, Fox) at Minute Maid Park. The Nationals made it possible by winning 7-2, over the Houston Astros in a game that was upstaged by controversy, Nats manager Dave Martinez being ejected, and resurrected memories of first-base umpire Don Denkinger’s blown call in Game 6 of the 1985 World Series. Max Scherzer, who was scratched from his Game 5 start, is set to pitch the decisive game for the Nationals, while Zack Greinke takes the mound for the Astros

    • Here we go — Game 7: Strasburg’s brilliance sets up a dramatic showdown
    • ‘Things escalated’: Nationals manager ejected after bizarre call
    • World Series controversy: Kate Upton sounds off on Twitter about Game 6 interference call controversy

    Chile inequality: Government fails to contain unrest

    Despite the huge number of protesters, the government says it would not allow them to reach the presidential palace because they have no one to negotiate the terms with.

      A rise in metro rail fares may have ignited the protests in Chile but the list of grievances against the country’s economic system is growing.

      Nationwide protests continued for the 12th consecutive day and have now broadened to include a demand for better pensions.

      The country’s unpopular private system is a hangover from the country’s military dictatorship.

      Al Jazeera’s Lucia Newman reports from Santiago, Chile.

      Fiat Chrysler, Groupe PSA Confirm Merger Talks – Quick Facts

      In response to recent media reports on a possible business combination between Groupe PSA (PEUGF.PK) and FCA Group, Fiat Chrysler Automobiles N.V. (FCAU) confirmed ongoing discussions between the two companies, but also said it has nothing further to add at this time.

      In a separate statement, Groupe PSA also confirmed ongoing discussions between the two companies. Groupe PSA is the owner of the Peugeot and Opel brands.

      Fiat Chrysler and Groupe PSA Group reportedly held talks over a potential merger in a deal that could create a $50 billion auto giant. According to the Wall Street Journal, both the companies are discussing about an all-share merger of equals.

      Peugeot Chief Executive Carlos Tavares would reportedly lead the combined auto maker as its CEO, while John Elkann, FCA chairman, will become the Chairman of the combined entity.

      Fiat Chrysler had earlier this year tried to merge with another French automaker Renault SA. However, the company dropped the plans later.

      Iberdrola’s nine-month earnings rise

      Iberdrola SA said Wednesday that its nine-month earnings rose.

      The Spanish energy company IBE, -0.02% said net profit for the first nine months of the year rose to 2.52 billion euros ($2.80 billion) from EUR2.09 billion a year earlier. The figure includes gains from asset disposals, it said.

      Earnings before interest, taxes, depreciation and amortization increased to EUR7.50 billion from EUR6.72 billion a year earlier.

      Revenue was EUR26.46 billion, compared with EUR26.28 billion, it said.

      LG Electronics profit falls 31% on year

      LG Electronics Inc. said on Wednesday its third-quarter net profit fell 31% on year due to tough business conditions.

      The consumer-electronics maker 066570, -0.72% said it expects intense price competition from its rivals to be a drag, as the shopping season for some of its flagship products approaches.

      Net profit for the September quarter was 345.70 billion Korean won ($296 million), compared with KRW497.10 billion in the same period a year earlier, hurt by U.S.-China trade tensions, Japan’s curbs on exports to South Korea and uncertainties over Britain’s delayed exit from the E.U.

      However, it beat a FactSet consensus forecast for a net profit of KRW304.14 billion in the third quarter.

      Revenue during the quarter rose 1.8% on year to KRW15.701 trillion ($13.45 billion), missing the FactSet consensus of KRW15.761 trillion. Operating profit increased 4.4% to KRW781.40 billion.

      Strong growth in the TV-led home entertainment segment for the third quarter offset weakness in smartphone and other business units, the company said.

      The company said it expects both revenue and operating profit may improve on year in the fourth quarter.

      LG Electronics shares fell 0.7% to KRW68,500, slightly steeper than the broader market’s 0.6% fall for the day.

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