COMPANY NEWS IN BRIEF
Deere cuts 2024 profit forecast as falling crop prices squeezes demandDeere trimmed its annual profit forecast for the second time on Thursday, as farmers buy fewer tractors and combine harvesters due to falling crop prices. The world's largest farm equipment maker said it now expects fiscal 2024 net income of about $7 billion, compared with its prior forecast of US$7.50 billion to US$7.75 billion. The U.S. Department of Agriculture has forecast net farm income to slide 25.5% to US$116.1 billion this year from 2023, as corn and soy prices plummeted to more than three-year lows.
Higher interest rates have added to the squeeze for farmers, leaving equipment dealers with bloated inventories and forcing companies like Deere and CNH Industrial to cut production.
U.S. inventories of tractors of 300 horsepower and above jumped more than 95% year-on-year in March, according to data from Sandhills Global, which tracks used equipment inventory for machinery makers.
Deere now expects sales of large agriculture equipment to decline between 20% and 25% this year, compared with its previous expectations for a roughly 20% fall.
- REUTERS -
Singapore Airlines CEO says travel out of China not yet recovered
Air travel demand from China is not back to pre-pandemic levels for Singapore Airlines, but a visa-free scheme for Chinese citizens to the Asian hub has helped fill seats and the airline will add more China capacity this year, its CEO said on Thursday.
Global aviation capacity returned to pre-pandemic levels this year, but recovery has been slower in Asia's aviation industry due to still-sluggish international demand in China, the world's second-largest economy.
"Travel into China has been strong, travel out of China has not yet recovered fully," Singapore Airlines CEO Goh Choon Phong told media. He said the visa-free scheme between China and Singapore which began in February has provided "some lift to load factors" for Chinese flights. The airlines group was progressively restoring China capacity and would increase seats to Shanghai, Beijing and Guangzhou this year, Goh added.
The flag carrier suspended April flights to China's Chengdu, Chongqing, and Xiamen, citing a lack of regulatory approvals. These are now in place and flights will operate until July, when permissions must be re-sought, Goh said.
Singapore Airlines posted a record annual profit for the second year in a row on Wednesday, raising its dividend.
However, the carrier's net profit fell around 4.5% year-on-year for the March quarter, with profit growth sliding in the preceding two quarters.
- REUTERS -
Chevron prepares for North Sea exit after more than 55 years
Chevron is set to launch the sale of its remaining UK North Sea oil and gas assets, in a move that would mark the U.S. energy giant's exit from the ageing basin after more than 55 years.
The process comes as Chevron prepares for the $53 billion acquisition of rival Hess which it said will include up to $20 billion in assets sales around the world.
The planned exit is the latest step in a steady retreat of top oil and gas companies from the declining British basin which pioneered deepwater production in the 1970s, as they focus on newer assets around the world.
Chevron is also seeking to sell its marginal interests in the Sullom Voe oil terminal, as well as the the Ninian pipeline SIRGE pipeline systems which are both linked to Sullom Voe, it said.
Chevron said the North Sea sale process is not related to a 35% windfall tax the British government imposed on North Sea producers following the surge in energy prices in 2022.
"As part of Chevron's focus on maintaining capital discipline in both traditional and new energies, we regularly review our global portfolio to assess whether assets are strategic and competitive for future capital," it said.
- REUTERS
Microsoft asks some China staff to relocate amid Sino-US tensions
Microsoft is asking some of its China-based employees to consider transferring outside the country, the company said on Thursday, as relations between U.S. and China grow increasingly strained over technologies like artificial intelligence and semiconductors.
The Wall Street Journal, which first reported the news, said Microsoft is asking about 700 to 800 people who are involved in machine learning and other work related to cloud computing to consider relocating.
"Providing internal opportunities is a regular part of managing our global business. As part of this process, we shared an optional internal transfer opportunity with a subset of employees," a Microsoft spokesperson told Reuters in an emailed statement, without specifying the number of employees it sent the request to.
Microsoft remains committed to China and will continue to operate there and other markets, the spokesperson said.
- REUTERS -