ROLLS-ROYCE
Results to Reflect Currency Swings
Rolls-Royce Holdings PLC said currency movements will provide
less of a boost to its performance this year than previously
forecast though the British engine maker is yet to take into
account the slump in the country's currency after the vote to leave
the European Union.
Rolls-Royce said on Tuesday that currency swings should increase
revenue by about GBP400 million ($532 million) and underlying
pretax profit by around GBP40 million, before taking into account
the extra benefit of the steep fall in the value of sterling since
last Friday.
In May, the aircraft engine maker predicted currency-related
revenue and profit gains of GBP450 million and GBP50 million,
respectively. The referendum's outcome "will have no immediate
impact on our day-to-day business," the company said.
Rolls-Royce, which supplies Boeing Co. and Airbus Group SE
planes, had wanted the U.K. to remain in the EU.
"The medium and long term effect will depend upon the
relationships that are established between the U.K., the EU and the
rest of the world over the coming years," it said.
The British pound stabilized in Asia trading on Tuesday, a
reprieve for the battered currency after a nearly 12% decline
following the U.K.'s Brexit vote.
Rolls-Royce, which no longer is affiliated with the luxury car
maker of the same name, said business in the first few months of
2016 was in-line with plans, while first-half results would be
"close to break-even." The company in May said profit for the
full-year would be generated principally in the second half.
--Robert Walls
BIRCHBOX
Online-Beauty Firm Cuts Staff, Executives
Online beauty startup Birchbox Inc. is parting ways with several
senior executives and cutting about 12% of its staff, the second
round of layoffs this year, as the company struggles with increased
competition and a difficult funding market.
The New York-based company on Tuesday said it dismissed about 30
of its 250 employees. In January, the company laid off about 50
workers.
Recent departures include some senior executives, including
co-founder Mollie Chen, chief technology officer Liz Crawford and
Benjamin Fay, a former Apple Inc. executive who joined Birchbox
last year, people familiar with the matter said.
Mr. Fay declined to comment. Ms. Crawford and Ms. Chen, who was
until recently the company's editorial director and will remain an
adviser, couldn't immediately be reached.
"Today's climate demands growth companies make changes to show a
more immediate path to profitability, conserve cash in uncertain
times and rethink cost structures," co-founder and Chief Executive
Katia Beauchamp wrote in a message posted to Medium.
The Wall Street Journal reported earlier this month that
Birchbox's talks with potential investors had failed to result in a
deal and that Birchbox had suspended plans to open physical retail
stores in the U.S. and expand into overseas markets such as
China.
The company, which ships samples of beauty products for $10 a
month, hasn't secured funding in more than two years, when a $60
million investment valued the young company at $485 million. Also
the business of mailing of beauty products has become much more
crowded field.
--Khadeeja Safdar
CARNIVAL
Strong Bookings, Low Costs Help Earnings
Carnival Corp. said its earnings soared in its latest quarter as
the cruise-ship company benefited from lower costs and
better-than-expected revenue.
Its shares rose 24 cents to $43.97 apiece in late trading on
Tuesday as per-share earnings, excluding certain one-time items,
topped expectations.
"This is shaping up to be another strong year," Chief Executive
Arnold Donald said, touting a recent dividend increase and approval
on Monday of an additional $1 billion share repurchase.
Carnival shares had earlier fallen with the broader travel
sector following Britain's vote to leave the European Union.
Carnival did project earnings for the current quarter below
analysts' expectations. The company forecast per-share earnings of
$1.83 to $1.87, while analysts polled by Thomson Reuters expected
per-share profit of $1.98.
Carnival, which is dual-listed in the U.S. and the U.K., has
benefited in recent quarters from low fuel prices, higher prices
and strong bookings.
In its press release Tuesday, Carnival said bookings for the
rest of the year are well ahead of the prior year at slightly
higher prices. The company, which operates Carnival Cruise Lines as
well as the Princess, Cunard and Holland America lines, also said
that since March, bookings have been at higher prices but volumes
have been running lower because there is less available inventory
remaining this year.
Also the business of mailing of beauty products has become much
more crowded field.
--Tess Stynes
(END) Dow Jones Newswires
June 29, 2016 02:49 ET (06:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Boeing (NYSE:BA)
Historical Stock Chart
From Feb 2024 to Mar 2024
Boeing (NYSE:BA)
Historical Stock Chart
From Mar 2023 to Mar 2024