Latest news with #costSavings
Times
8 hours ago
- Business
- Times
Trump tariffs leave UK firms scrambling to renegotiate contracts
British companies are looking to renegotiate supplier contracts as they scramble to find savings that can protect them from the impact of escalating US tariffs, according to new data. A survey of firms with more than 5,000 employees found that 90 per cent fear that President Trump's import duties would hurt their revenues and profits, with businesses looking at a series of ways to manage rising costs. More than half (55 per cent) said their main tool to deal with tariff threats was to review existing contracts to find savings or renegotiate better terms with break clauses that could account for the imposition of new levies, according to Acertis, which provides contract management software. Bernadette Bulacan at Icertis said companies' first resort 'to protect margins is to take a critical look at customer and supplier relationships. For many companies, the path to surviving tariff disruption starts not with policy lobbying but with a forensic look at what's already been committed to on paper.' She said firms were taking measures to include rules of termination and force majeure clauses in contracts to deal with costs caused by tariffs, while also seeking out new suppliers in countries that were not affected by sweeping US levies. The Trump administration applied a 90-day pause on reciprocal tariffs he had announced on most of the world economy on April 8, which is due to expire in early July. The president has signed a partial tariff deal with the UK, but most British goods will still be subject to a 10 per cent tariff when selling to US markets, raising the average US tariff rate from about 1 per cent last year to more than 6 per cent. The European Union is also in talks with the White House about avoiding a potential 55 per cent tariff on all its goods exports. • Britain's exporters at a loss over US tariff turmoil The debate over contractual terms between suppliers and customers is part of a swathe of legal complexities about who should shoulder the cost of import taxes. In April, Howmet Aerospace, an American supplier of components to the sector, declared a force majeure event that would allow it to stop shipments if it remained subject to US tariffs. Although the full gamut of threatened tariffs has not yet been applied on most countries, recent data has shown a spike in invoice rejections as businesses attempt to delay supplier payments until they have more certainty about US trade policy. Icertis's survey, which included 1,000 companies across Britain, the United States and India, found that just under half of them were 're-evaluating' where to find suppliers to avoid tariffs, restructuring their supply chains and manufacturing plants, and also considering 'sunsetting relationships that no longer serve under new cost and compliance pressures'. About 40 per cent of UK firms said they would absorb higher costs into their margins and just over a third said they were planning to raise prices charged to consumers to deal with tariffs. Bulacan said companies should also consider price adjustment clauses that account for tariff changes. 'In the same way that force majeure clauses changed fundamentally during the pandemic, these clauses could be invoked against new tariffs to prevent potential losses,' she said.
Bloomberg
2 days ago
- Automotive
- Bloomberg
Musk's Tesla Prepares to Launch Robotaxi Service
As Tesla prepares to launch its robotaxi service in Austin, Kara Kockelman, Professor of Transportation Engineering at the University of Texas, discusses the cost savings that autonomous driving can bring to the roads. She joins Caroline Hyde on 'Bloomberg Tech.' (Source: Bloomberg)
Bloomberg
22-05-2025
- Business
- Bloomberg
Carney Looks to AI for Savings as Canada's Budget Pressures Mount
By and Derek Decloet Save Prime Minister Mark Carney said Canada will begin to use artificial intelligence 'at scale' to make the government more productive, as his administration looks for ways to squeeze out cost savings in a time of economic pressure. Carney released a letter spelling out seven major priorities for his new cabinet, one of which is 'spending less on government operations' to free up money for other priorities. The prime minister promised during the recent election campaign to rebuild Canada's military and use the financial backing of the government to accelerate home construction, among other spending ideas.
Yahoo
08-05-2025
- Business
- Yahoo
Solvay first quarter 2025 results
Solvay S.A. Press release Regulated information Resilient performance supported by a diversified portfolio and cost savings Brussels, May 8, 2025, 7.00am CEST Highlights Underlying net sales in Q1 2025 of €1,122 million were down -5.8% organically compared to Q1 2024. Uncertainties on the macro-environment led customers to be more cautious in the second part of the quarter, creating some softness in Soda Ash, particularly in March. Most of the other businesses showed resilient performance. Underlying EBITDA in Q1 2025 decreased year-on-year to €250 million (-5.7% organically) compared to Q1 2024, with 22.3% underlying EBITDA margin. It was supported by a one-off gain of c. €10 million on the favorable outcome of a patent dispute in Performance Chemicals. Structural cost savings initiatives delivered €27 million in Q1 2025, bringing the cumulative savings to €137 million since the start of 2024. Underlying net profit from continuing operations was €102 million in Q1 2025 vs. €119 million in Q1 2024. Free Cash Flow amounted to €42 million in Q1 2025, in line with normal seasonality, including Capex of €-70 million. Underlying Net Debt at €1.7 billion, implying a leverage ratio of 1.7x. 2025 outlook confirmed: underlying EBITDA currently expected to reach the lower half of the guidance range; free cash flow1 guidance of €300 million confirmed Underlying (in € million) Q1 2025 Q1 2024 % yoy % organic Net sales 1,122 1,201 -6.6% -5.8% EBITDA 250 265 -5.9% -5.7% EBITDA margin 22.3% 22.1% +0.2pp - FCF1 42 126 -66.5% - ROCE 17.2% 19.8% -2.7pp - 1 Free Cash Flow (FCF) here is the free cash to Solvay shareholders from continuing operations. Philippe Kehren, Solvay CEO 'The current macro-environment is uncertain and filled with challenges that were not foreseen at the start of the year. However, our resilient global and local to local business model will allow us to navigate these challenges. Our focus in the short-term is clear: accelerating the transformation of the company and disciplined spending to optimize cash generation. And I am pleased to see the ongoing progress in these areas, driven by our teams worldwide. I have every confidence in the ability of the Solvay team to succeed in the current environment and continue to deliver for all our stakeholders.' 2025 outlook The current demand environment is uncertain but the essential nature of its businesses makes Solvay resilient. The company expects the second quarter underlying net sales to be sequentially stable compared to Q1 2025, while underlying EBITDA would be sequentially down as Q1 included a one-off gain of c. €10 million and as Q2 will start to see an increase of the temporary stranded costs from the exit of the Transition Service Agreement with Syensqo.
