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Foxconn to announce new U.S. manufacturing plant: source

Posted by: Admin | Posted on: July 26th, 2017 | 0 Comments

(Reuters) – Apple Inc (AAPL.O) supplier Foxconn Technology Co (2354.TW) will announce plans to build a multi-billion dollar electronics manufacturing plant in Wisconsin at a White House event later on Wednesday, a source briefed on the matter said.

A White House official said President Donald Trump is hosting an event at 5 p.m. EDT with Foxconn “for a technology manufacturing initiative announcement that will bring jobs and billions of dollars in investments to our country.”

Foxconn said last month it plans to invest more than $10 billion in a display-making factory in the United States.

Trump has called for firms to build more products in the United States. He has made several announcements since his election in November about U.S. investments by both foreign and domestic manufacturers, building on his campaign focus on preserving and creating American jobs.

Tai Jeng-wu, CEO of Foxconn’s Japanese unit Sharp Corp (6753.T), said in June that six U.S. states were being looked at for a possible location for a plant making displays.

Foxconn already has operations in Pennsylvania.

News of the plant was first reported by the Wall Street Journal on Tuesday in an interview with Trump. He also said Apple Inc (AAPL.O) Chief Executive Tim Cook has committed to build three big manufacturing plants in the United States.

Reporting by David Shepardson; Editing by Dan Grebler and Chris Sanders

Coca-Cola profit beats on demand for juices, low-sugar sodas

Posted by: Admin | Posted on: July 26th, 2017 | 0 Comments

(Reuters) – Coca-Cola Co’s (KO.N) profit, in its first quarter under new Chief Executive James Quincey, beat analysts’ estimates on higher demand for its healthier non-carbonated beverages as well as low and no-sugar versions of its sodas.

Coca-Cola, like rival PepsiCo Inc (PEP.N), has been building its non-carbonated drinks portfolio and stepping up efforts to reduce sugar in its beverages as consumers look for healthier options.

“Organic revenue growth in sparkling soft drinks was led by innovation in and marketing support for our low- and no-sugar options like Coca-Cola Zero Sugar,” Quincey said in a statement.

Global volume sales of low and no-calorie soda drinks rose in the mid-single digits in the second quarter ended June 30, the company said on Wednesday.

The world’s largest beverages maker said it plans to introduce Coke Zero Sugar in the United States in August.

Coca-Cola said demand rose for its non-aerated drinks such as innocent juice and smoothies in Europe.

The company is delivering on its strategic priorities – growing soda sales by reducing sugar content, broadening beverage portfolio and using higher prices as a driver of profit, Susquehanna analyst Pablo Zuanic wrote in a note.

The change in strategy is paying off for PepsiCo as well. Growing demand for higher-margin healthier foods such as baked chips and smaller soda servings helped its profit beat analysts’ estimate this month.

Net income attributable to Coca-Cola’s shareholders fell to $1.37 billion, or 32 cents per share, in the second quarter ended June 30, from $3.45 billion, or 79 cents per share, a year earlier.

Coca-Cola incurred a charge of $653 million related to refranchising its North America bottling operations, as the company continues to sell most of its low-margin bottling business to cut costs.

Excluding items, Coca-Cola earned 59 cents per share, beating the average analysts’ estimate of 57 cents, according to Thomson Reuters I/B/E/S.

Revenue fell 16 percent to $9.70 billion, hurt by the refranchising of bottling territories and a strong dollar.

However, revenue beat the average analysts’ estimate of $9.65 billion.

The company also forecast adjusted 2017 profit to be flat or down 2 percent, compared with its previous forecast of a 1-3 percent decline, citing lower impact from currency exchange rates.

Coca-Cola’s shares were marginally up in premarket trading on Monday.

Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Arun Koyyur