Latest news with #JohnRevill
Yahoo
15-05-2025
- Business
- Yahoo
Siemens confirms growth outlook after Q2 figures beat forecasts
By John Revill ZURICH (Reuters) -Siemens still expects to increase its full-year sales by between 3 and 7% "despite increased uncertainty", the German engineering group said on Thursday, as it reported better-than-expected profit during its second quarter. The company, whose products include factory software, controllers and trains, said its industrial profit rose 29% to 3.24 billion euros ($3.63 billion) in the three months to the end of March. The figure, helped by a 315-million-euro gain from the sale of its wiring business to ABB, beat analysts' consensus forecast of 2.75 billion euros. Sales rose 7% to 19.76 billion euros, ahead of forecasts for 19.22 billion euros, while orders increased 10%. As a result, Siemens confirmed its outlook for its full-year sales to increase by 3-7% despite seeing "increased uncertainty in the economic environment". "Our customers continue to rely on our technology, and our global footprint demonstrates our resilience," said Chief Executive Roland Busch in a statement. In March, Chief Financial Officer Ralf Thomas noted hesitancy among customers due to uncertainties about tariffs, with many delaying investment decisions. But Siemens, whose results give an indication of the broader industrial economy, said it was seeing an improving situation in most of its businesses. Although Digital Industries, the company's flagship automation unit, struggled, with a 5% drop in revenue, Siemens said it saw signs of destocking by customers coming to an end. The weakness was compensated by Smart Infrastructure, which combines hardware and software to manage electricity, heating, cooling, lighting, and data in buildings. It increased sales by 12% while profit jumped 61% helped by the sale of its wire accessories business. The division is benefiting from sustained demand for electrification, power distribution and the construction of data centres for artificial intelligence. Mobility also saw revenue and profit rise, buoyed by global investments in rail and transport infrastructure such as electric trains in the United States. ($1 = 0.8931 euros)
Time of India
01-05-2025
- Business
- Time of India
Logitech to shift some production from China to counter Trump tariffs
By John Revill ZURICH: Logitech International will mitigate the impact of U.S. President Donald Trump's tariff policy by shifting some production of its computer mice and other peripherals away from China. Chief Executive Hanneke Faber said she would take an active approach to handling trade barriers, an issue of particular concern for Logitech, which produces all of its products outside the United States, though the country is its biggest market with 35% of sales. "We are going to play offence while exercising strong cost discipline and acting with agility," Faber told analysts after the webcam and keyboards maker reported fourth-quarter earnings slightly below estimates. The Swiss-American company presently makes roughly 40% of its products sold in the United States in China, creating a difficult situation after Washington imposed import duties of 145% on goods from Beijing. Logitech now wants to reduce the share of China-made products shipped to the U.S. to 10%, by switching more of its production to Vietnam, Taiwan, Thailand, Malaysia and Mexico, where it has arrangements with contract manufacturers. "We're in the fortunate position that we have invested in a really diversified manufacturing footprint," Faber said. "So while I won't say it's easy to shift volume, our team is doing a fantastic job at shifting volume fast to mitigate tariff impacts." Other moves included raising prices in the United States by around 10% to compensate for tariffs, while the company would also remain focused on the rest of the world where it gets 65% of its sales. In addition costs would be reduced, for example by delaying hiring, and cutting back on spending on travel and other expenses The plan was unveiled as Logitech reported non-GAAP operating profit fell 16% to $133 million in the quarter ended March, missing analysts' estimate of $134 million. Quarterly sales were flat at $1.01 billion, below estimates of $1.03 billion, the consensus of analysts compiled by Visible Alpha. Bank Vontobel analyst Michael Foeth was encouraged by Logitech's plan, while the stock was trading 1.5% higher in early trading in Zurich. "From a position of competitive and financial strength and with a highly agile production set-up, the company has a convincing track record to compete successfully in difficult times," Foeth said.
Yahoo
23-04-2025
- Business
- Yahoo
Swiss insurers Helvetia and Baloise to merge to create top 10 company
By John Revill ZURICH (Reuters) -Helvetia and Baloise plan to merge to create Switzerland's second-largest insurance group with a combined business volume of 20 billion Swiss francs ($24.69 billion), the pair said on Tuesday. The new group, to be called Helvetia Baloise Holding, will become one of the ten largest insurers in Europe, under what the two companies called a "merger of equals" with an even spread of senior executives and board members. The deal, which is expected to be completed in the fourth quarter of 2025, is the latest in the insurance sector after Belgium's Ageas agreed to buy British car and home insurer esure for 1.3 billion pounds last week. Helvetia CEO Fabian Rupprecht will take the helm of the new firm while Thomas von Planta, currently chairman at Baloise, will lead the combined group's board of directors. Before the deal was announced, Helvetia had a market capitalisation of 9.6 billion Swiss francs, while Baloise was valued at around 8.5 billion francs. The exchange ratio will be 1.0119 new Helvetia shares for each Baloise share, with shareholders asked to give their approval at special meetings on May 23. Helvetia shareholders will hold 53% of the combined group, which will have a logo based on the one used by Baloise, whose base in Basel will be also be the new head office. "The transaction will ensure the long-term attractiveness and competitiveness of the two long-standing Swiss companies in the local and international insurance market and generate superior value for customers, partners, employees, the public and shareholders," von Planta said. In addition to the companies' existing cost improvement plans, the merger is expected to generate annual savings of around 350 million Swiss francs ($433 million) before taxes. Around two thirds of the savings will come from cuts to the 22,000-strong combined workforce, although the company said it was too early to give a figure. Activist investor Cevian Capital Partners, which holds a 9.4% stake in Baloise had been campaigning for changes at the company. It declined to comment on the deal. The merger does not come as a complete surprise following speculation in recent months, said Zuercher Kantonalbank analyst Georg Marti. "The new group will be an important competitor, from which shareholders can benefit with better financial figures," he said. ($1 = 0.8101 Swiss francs) (Writing by John Revill and Miranda Murray; Editing by Edwina Gibbs, Kirsten Donovan)
Yahoo
23-04-2025
- Business
- Yahoo
Analysis-Swiss franc's surge on tariff turmoil pressures SNB to act
By John Revill ZURICH (Reuters) -The Swiss franc's rapid appreciation on U.S. policy uncertainty could force the Swiss National Bank to intervene soon, as Swiss industry hopes the safe haven currency's surge can be tamed before it deals another blow to a tariff-threatened sector. The franc has surged roughly 9% against the dollar so far this month, and is set for the biggest monthly gain since the 2008 financial crisis. Last week it hit its strongest level since January 2015 when the SNB scrapped its minimum exchange rate. That has pulled the franc, also known as the Swissie, up 2.6% against the euro in April, taking it close to its strongest level in more than 10 years. But the rush into the franc, spurred by concerns about U.S. President Donald Trump's trade policy gyrations, puts the SNB's 0-2% inflation target at risk by depressing the cost of imports at a time when inflation is already near zero. It also hurts Swiss exporters potentially facing 31% U.S. tariffs by making their goods dearer abroad. "The rise of the Swiss franc is the final ingredient for a poisonous cocktail for Swiss industry," said Jean-Philippe Kohl, vice director of industry association Swissmem. "Companies are already struggling with weak demand abroad, the threat of massive American tariffs on Switzerland, and uncertainty caused by President Trump's trade policy." Swissmem refrained from demanding SNB action, but would welcome any moves by the central bank to mitigate the franc's rise, Kohl said. Interventions, rather than rate cuts, are probably the SNB's best tool, with its key rate already at 0.25% and expected to dip further, analysts say. "If everybody is fearful and insecurity is high, nobody really cares about the interest rate in Switzerland," said Thomas Stucki, former head of asset management at the SNB and Chief Investment Officer at St Galler Kantonalbank. Selling francs to weaken the currency would be a shift for the SNB, which bought only 1.2 billion francs of forex last year and sold foreign currencies worth nearly 133 billion francs in 2023 as it sought to shore up the Swissie to cool inflation. Interventions carry their own risks, such as Washington branding Switzerland a currency manipulator. This occurred in 2020 during Trump's first administration. ING's global head of markets Chris Turner said one factor in the background driving Swissie strength, on top of safe-haven flows, was markets questioning "whether the SNB will be as able to undertake large scale FX buying as they have in the past." PAIN THRESHOLD? The SNB said this month it does not engage in currency manipulation and only intervenes to foster price stability. It has also said it could return to negative rates. But negative rates were unpopular with banks, savers and pension funds when the SNB imposed them from late 2014 to 2022, making interventions look easier to manage. UBS economist Maxime Botteron did not rule out that limited sales of francs by the SNB were already underway, but he did not expect systematic interventions. "Interventions are more flexible than interest rate cuts – the SNB can go into the market, sell some francs to ease the appreciation, and then stop," he said. The SNB declined to comment on the franc's value or how it would react. It's the currency's rally against the euro that policymakers are likely watching most since the bulk of Swiss trade is with eurozone members, giving euro-denominated imports more influence over inflation. In 2023, 57% of Swiss imports were invoiced in euros, compared with 13% in dollars. The central bank has said it does not look at particular currency pairs, but a basket of currencies when deciding policy, and would act to meet its inflation target. Swiss Re's Head of Macro Strategy Patrick Saner said intervention was likely, especially with the real effective exchange rate of the franc reaching post-2015 highs. "The speed and magnitude of the recent Swiss franc rally, particularly since April 2, significantly raises the odds that the SNB is close to seeing this as a "threshold moment" for intervention," he said. "While political optics matter.... intervention remains likely if price stability is at risk." Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
ABB to increase local US production to reduce tariff impact
By John Revill ZURICH (Reuters) - Swiss engineering group ABB is expanding its local production in the United States and other countries to mitigate the impact of tariffs imposed by U.S. President Donald Trump, Chief Executive Morten Wierod said on Thursday. ABB has already pledged this year to spend $120 million to expand production of low voltage electrical equipment in the U.S. at its sites in Tennessee and Mississippi and will continue to invest, Wierod told Reuters. The company, which produces electrification equipment, industrial machinery and factory robots, has been growing its sales from local production globally. "In India we have a target to get to above 90% local production. We have the same target in China, Europe and also the U.S.," he said after ABB reported its first-quarter figures. "We will do this mainly through organic investments, but inorganic moves can also be a part of that," he added. The drive to become more self-sufficient would help ABB mitigate the impact of tariffs, Wierod said, while the company was also spending to meet market growth. Currently 75-80% of ABB's sales for the United States are produced domestically, while 85% of its sales in India and China are produced locally. In Europe the figure is around 95%. "We have spent about $500 million over the last three years in the U.S., and we will continue at that rate. The overall spending will go up rather than down. It's a constant project," Wierod said. "We will see more of that to become less dependent on imports from outside the U.S," he added. Trump's tariffs and the lack of certainty created by their on-again off-again nature have roiled global markets, destabilised the United States' trading partners and left companies reassessing their operations. ABB expects only limited impact from tariffs on its business for the rest of the year however, the company said. It did not have a time frame to reach its local production targets, Wierod said. And, as the company aimed to continue benefiting from economies of scale, it was not aiming for 100% production in any one country. The COVID-19 pandemic also illustrated the importance of having flexible local production to enable uninterrupted supplies, if global supply chains experience difficulties. "It's important for customers to know, even if we are a single-source supplier, we have factories that can still supply them if there's trade disruptions," Wierod said. Sign in to access your portfolio
