Latest news with #US-traded
Business Times
9 hours ago
- Automotive
- Business Times
Trump tariffs take US$1-billion bite out of GM earnings, shares fall
[BENGALURU] General Motors' (GM) second-quarter earnings took a US$1.1-billion hit from tariffs, but the automaker still beat analyst expectations for the period on Tuesday (Jul 22), supported by strong sales of its core petrol trucks and SUVs. The largest US automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by US$4 billion to US$5 billion this year. GM said it could take steps to mitigate at least 30 per cent of that impact. Shares fell 8 per cent. The automaker's revenue in the quarter ended Jun 30 fell nearly 2 per cent to about US$47 billion from a year ago. Its quarterly adjusted earnings per share fell to US$2.53 compared with US$3.06 a year earlier. Analysts on average expected adjusted profit of US$2.44 per share, according to data compiled by LSEG. Its adjusted earnings before interest and taxes fell 32 per cent to US$3 billion. GM was among corporations that revised annual guidance due to the impact from US President Donald Trump's tariffs, lowering it to an annual adjusted core profit of between US$10 billion and US$12.5 billion. The company on Tuesday stood by that forecast. CFRA Research analyst Garrett Nelson wrote in a Tuesday morning note that one of the reasons shares dropped was because investors were disappointed the automaker did not raise guidance. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the US market, its main source of profit, rose 7 per cent, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year earlier. Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. The automaker is so far keeping pricing consistent and absorbing added tariff costs rather than passing them on to customers. Jeep-maker Stellantis on Monday warned that tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about 300 million euros in the first half of the year. Shares of Ford Motor fell about 1 per cent on Tuesday, and US-traded shares of Stellantis edged up less than 1 per cent. GM took several steps in recent months to bolster its combustion-engine operations through increased investment in its US factory base, calling into question its goal of ending the production of petrol-powered cars and trucks by 2035. 'Despite slower electric vehicle (EV) industry growth, we believe the long-term future is profitable EV production, and this continues to be our north star,' GM CEO Mary Barra told analysts on Tuesday. GM announced in June that it would invest US$4 billion at three US facilities in Michigan, Kansas, and Tennessee, including a plan to move production of the Cadillac Escalade and increase output of its two big pickup trucks. It added production of its previously Mexico-produced Chevy Blazer to the Tennessee plant. The automaker imports about half of the vehicles it sells in the US, mainly from Mexico and South Korea. Crosstown rival Ford produces about 80 per cent of its US-sold vehicles domestically. Ford is expected to report second-quarter results next week Car companies are increasingly shifting their focus to bolstering the core lineup of petrol trucks and SUVs, as the growth rate of EV sales has slowed. Demand for battery-powered models already has slowed after rapid growth earlier this decade. The trend is intensified by the pending disappearance of government support for the battery-powered models. Sweeping tax and budget legislation approved by Congress will eliminate US$7,500 tax credits for buying or leasing new EVs and a US$4,000 used-EV credit at the end of September. Trump also signed tax and budget legislation that eliminates fines for failures to meet fuel economy rules, a move that makes it easier to build more petrol-powered vehicles. REUTERS
New York Post
16 hours ago
- Automotive
- New York Post
GM profit hurt by over $1B in tariffs — and shares tumble as impact expected to worsen
General Motors' second-quarter earnings took a $1.1 billion hit from tariffs, but the automaker still beat analyst expectations for the period, supported by strong sales of its core gasoline trucks and SUVs. The largest US automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4 billion to $5 billion. GM said it could take steps to mitigate at least 30% of that impact. Shares fell about 6% in early trading. 3 GM's revenue in the quarter fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Bloomberg via Getty Images The automaker's revenue in the quarter ended June 30 fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Analysts on average expected adjusted profit of $2.44 per share, according to data compiled by LSEG. Its adjusted earnings before interest and taxes fell 32% to $3 billion. GM was among corporations that revised annual guidance due to the impact from President Trump's tariffs, lowering it to an annual adjusted core profit of between $10 billion and $12.5 billion. The company on Tuesday stood by that forecast. Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the US market – its main profit center – rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year earlier. Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. Jeep-maker Stellantis on Monday warned that tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about 300 million euros in the first half of the year. Shares of rival Ford Motor, and US-traded shares of Stellantis fell about 1% Tuesday morning. 3 Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. CEO Mary Barra, above. AP The automaker took several steps in recent months to bolster its combustion-engine operations through increased investment in its US factory base, calling into question its goal of ending the production of gas-powered cars and trucks by 2035. 'Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our North Star,' GM CEO Mary Barra told analysts Tuesday. GM announced in June that it would invest $4 billion at three facilities in Michigan, Kansas, and Tennessee, including a plan to move production of the Cadillac Escalade and increase output of its two big pickup trucks. It added production of its previously Mexico-produced Chevy Blazer to the Tennessee plant. The automaker imports about half of the vehicles it sells in the US, mainly from Mexico and South Korea. Crosstown rival Ford produces about 80% of its US-sold vehicles domestically. Ford is expected to report second-quarter results next week. 3 GM imports about half of the vehicles it sells in the US, mainly from Mexico and South Korea. REUTERS Car companies are increasingly shifting their focus to bolstering the core lineup of gas trucks and SUVs, as the growth rate of EV sales has slowed. Demand for battery-powered models already has slowed after rapid growth earlier this decade. The trend is intensified by the pending disappearance of government support for the battery-powered models. Sweeping tax and budget legislation approved by Congress will eliminate $7,500 tax credits for buying or leasing new electric vehicles and a $4,000 used-EV credit at the end of September. Trump also signed tax and budget legislation that eliminates fines for failures to meet fuel economy rules, a move that makes it easier to build more gas-powered vehicles.
Business Insider
2 days ago
- Business
- Business Insider
Chip giant TSMC is the newest member of the $1 trillion market-cap club
Taiwan Semiconductor Manufacturing Company is the newest member of an elite club The company's Taiwanese shares surged to a record high on Friday, touching a $1 trillion valuation for the first time, while its US-traded American Depository Receipts were worth about $1.2 trillion. The stock is up almost 50% since hitting a low in April. The latest surge comes after strong second-quarter earnings. Much of TSMC's growth has been fueled by its lucrative niche market. As the primary AI chip supplier to top tech companies, including Apple, Nvidia, and Qualcomm, it has benefited from the robust demand that has transformed the market over the past few years. TSMC's leaders are optimistic that this growth will continue as the company enters the second half of the fiscal year, after stating that they aren't concerned about rising competition. "Our business in the second quarter was supported by continued robust AI and HPC-related demand" said CFO and VP of product Wendell Huang. "Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies." The company reported year-over-year revenue increase of 38% last quarter. It also showed a 12% revenue increase and 10% net income jump from Q1. The jump to a $1 trillion valuation comes after Nvidia, one of TSMC's top customers, made market history as the first company to reach a $4 trillion valuation earlier this month.
Business Times
7 days ago
- Business
- Business Times
Secretive family behind Tetra Pak bets bulk of US$9b on stocks via Singapore entities
[KUALA LUMPUR] A mysterious entity based in the heart of Singapore's financial district emerged as the biggest shareholder in International Flavors & Fragrances (IFF) nine years ago. It turned out that the owner was the Rausing family, which hails from Sweden and made a fortune from Tetra Pak cartons. It is now also clear that the stake was one of the first public disclosures about how the media-shy clan deploys its billions. Today, the family has amassed a stock portfolio worth around US$9 billion and spanning more than 100 companies in Europe and the United States, according to a Bloomberg analysis of regulatory filings. Through entities in Liechtenstein, Singapore and Switzerland, the Rausings have a US$1.9 billion stake in IFF, US$2.4 billion in industrial-gas company Linde and US$2.2 billion in flavour-maker Givaudan, and smaller holdings in companies from Apple to Wells Fargo, regulatory filings show. The scale of these bets, which has not previously been reported, and the entities that hold them, highlight the growing sophistication in how some of the world's richest families manage their money, and the broader boom in the family office industry. Representatives for the Rausing family-owned corporation Tetra Laval, and the different entities, either declined to comment or did not respond to requests for comment. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The vast majority of the US$9 billion is concentrated in just five stocks: IFF, Linde, Givaudan, Sensient Technologies, which makes speciality ingredients, and consumer-packaging company SIG Group. Those investments have been held by Singaporean companies that ultimately are controlled by a Liechtenstein entity called Haldor Foundation. A Switzerland-based investment firm called Longbow Finance held a portfolio of about 80 US-traded securities that added up to US$835 million as of March 31. Longbow has catered to the Rausing family's wealth for decades. Another Swiss investment firm, called Freemont Management, also held a broad portfolio of securities worth US$304 million at the end of March. Freemont was established in 1994 and was recorded as a subsidiary of Tetra Laval as recently as May 2025, according to Orbis, a database of company data. The disclosures only comprise holdings in publicly traded securities that meet certain thresholds for size or complexity. It is possible that the three entities hold investments in other assets with different transparency rules. Longbow's assets, for example, have also included hedge funds, private credit and real estate. It is difficult to discern how the bets have played out because the filings largely show their present value but often not their purchase price. IFF's shares, for example, have returned -29 per cent since the Rausings first disclosed their stake in the New York-based company, compared with 242 per cent for the S&P 500 Index. By contrast, Givaudan has returned 41 per cent since the stake appeared in its annual report for fiscal 2022, almost double the Swiss Exchange Performance Index. But the portfolio has kept growing regardless of share prices. Filings in Singapore show that two subsidiaries there – Winder Investments and Winder – periodically received infusions of tens or hundreds of millions of US dollars, respectively. The source of the money remains unclear, like much else about the finances of the Rausings and Tetra Laval. The closely held company does not disclose its complete results, so it is not possible to determine how much of its potential profits is distributed to the owners. It is also not clear which family members are the ultimate beneficiaries of the three investment entities. Previous news reports have named Finn, Jorn, and Kirsten Rausing, grandchildren of Tetra Laval founder Ruben Rausing, as the beneficiaries of Haldor. The Bloomberg Billionaires Index credits each of the siblings with one-third of Tetra Laval, which helps put their respective net worth at about US$5.9 billion. But the index does not allocate them a specific slice of either of the three investment firms. The siblings, who are in their 60s and 70s, came in line to take over the business after their father, Gad Rausing, bought out their uncle in 1995. Gad's father, Ruben, was born in the small community of Raus in southern Sweden in 1895. He spent several years in New York where he studied at Columbia University. He saw the city's self-service grocery stores and figured the concept would soon be adopted in Europe, which would drastically increase demand for hygienic and practical consumer-sized packages of grocery staples. He returned home and started a packaging company. The tetrahedron-shaped milk carton, developed in the 1940s and 1950s, became a breakthrough product. Last year, the company produced 178 billion packs and collected US$18.5 billion of revenue. BLOOMBERG
Business Times
7 days ago
- Business
- Business Times
Secretive family behind Tetra Pak bets US$9 billion on stocks via Singapore entity
[KUALA LUMPUR] A mysterious entity based in the heart of Singapore's financial district emerged as the biggest shareholder in International Flavors & Fragrances (IFF) nine years ago. It turned out that the owner was the Rausing family, which hails from Sweden and made a fortune from Tetra Pak cartons. It is now also clear that the stake was one of the first public disclosures about how the media-shy clan deploys its billions. Today, the family has amassed a stock portfolio worth around US$9 billion and spanning more than 100 companies in Europe and the US, according to a Bloomberg analysis of regulatory filings. Through entities in Liechtenstein, Singapore and Switzerland the Rausings have a US$1.9 billion stake in IFF, US$2.4 billion in industrial-gas company Linde and US$2.2 billion in flavour-maker Givaudan, and smaller holdings in companies from Apple to Wells Fargo, regulatory filings show. The scale of these bets, which has not previously been reported, and the entities that hold them, highlight the growing sophistication in how some of the world's richest families manage their money, and the broader boom in the family office industry. Representatives for the Rausing family-owned corporation Tetra Laval, and the different entities, either declined to comment or did not respond to requests for comment. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The vast majority of the US$9 billion is concentrated in just five stocks: IFF, Linde, Givaudan, Sensient Technologies, which makes speciality ingredients, and consumer-packaging company SIG Group. Those investments have been held by Singaporean companies that ultimately are controlled by a Liechtenstein entity called Haldor Foundation. A Switzerland-based investment firm called Longbow Finance held a portfolio of about 80 US-traded securities that added up to US$835 million as of March 31. Longbow has catered to the Rausing family's wealth for decades. Another Swiss investment firm, called Freemont Management, also held a broad portfolio of securities worth US$304 million at the end of March. Freemont was established in 1994 and was recorded as a subsidiary of Tetra Laval as recently as May 2025, according to Orbis, a database of company data. The disclosures only comprise holdings in publicly traded securities that meet certain thresholds for size or complexity. It is possible that the three entities hold investments in other assets with different transparency rules. Longbow's assets, for example, have also included hedge funds, private credit and real estate. It is difficult to discern how the bets have played out because the filings largely show their present value but often not their purchase price. IFF's shares, for example, have returned -29 per cent since the Rausings first disclosed their stake in the New York-based company, compared with 242 per cent for the S&P 500 Index. By contrast, Givaudan has returned 41 per cent since the stake appeared in its annual report for fiscal 2022, almost double the Swiss Exchange Performance Index. But the portfolio has kept growing regardless of share prices. Filings in Singapore show that two subsidiaries there – Winder Investments and Winder – periodically received infusions of tens or hundreds of millions of US dollars, respectively. The source of the money remains unclear, like much else about the finances of the Rausings and Tetra Laval. The closely held company doesn't disclose its complete results, so it's not possible to determine how much of its potential profits is distributed to the owners. It's also not clear which family members are the ultimate beneficiaries of the three investment entities. Previous news reports have named Finn, Jorn, and Kirsten Rausing, grandchildren of Tetra Laval founder Ruben Rausing, as the beneficiaries of Haldor. The Bloomberg Billionaires Index credits each of the siblings with one-third of Tetra Laval, which helps put their respective net worth at about US$5.9 billion. But the index does not allocate them a specific slice of either of the three investment firms. The siblings, who are in their 60s and 70s, came in line to take over the business after their father, Gad Rausing, bought out their uncle in 1995. Gad's father, Ruben, was born in the small community of Raus in southern Sweden in 1895. He spent several years in New York where he studied at Columbia University. He saw the city's self-service grocery stores and figured the concept would soon be adopted in Europe, which would drastically increase demand for hygienic and practical consumer-sized packages of grocery staples. He returned home and started a packaging company. The tetrahedron-shaped milk carton, developed in the 1940s and 1950s, became a breakthrough product. Last year, the company produced 178 billion packs and collected US$18.5 billion of revenue. BLOOMBERG
