Latest news with #operatingcosts
Irish Times
15-07-2025
- Business
- Irish Times
Planned 9.8% increase in non-domestic water charges undermining viability of hotels, says IHF
Non-domestic water charges are set to be increased by 9.8 per cent in October following a decision by the Commission for the Regulation of Utilities (CRU), but hoteliers have expressed 'serious concerns' over the increase. Michael Magner, the IHF president, described the increase as 'yet another example of the relentless increases in operating costs that are eroding Irish competitiveness and undermining the viability of businesses.' The new water and wastewater tariff rates will be effective from October 1st. The move is to 'ensure the recovery of costs of water services' and would aide 'the reliability, efficiency and sustainability of water services,' the CRU said. The decision to increase all charges by the same percentage value was made in the hopes of 'retaining the equity of cost allocation in the 2024 tariffs for all customer types' the CRU said in the decision published on Monday. READ MORE The IHF president said that, over the past two years, the average 70-bedroom hotel in Ireland will have seen an increase of over 40 per cent in its water tariffs. He said the increase is 'unsustainable given the exceptionally challenging environment' for Irish hotels. 'As a big consumer of water services, the hospitality sector is disproportionately impacted by increases in water tariffs, which businesses are unable to absorb.' Mr Magner said the 'cumulative impact of these and other cost increases now poses a serious threat to the viability of many businesses through our wider tourism and hospitality sector.' He said the sector is concerned about potential future annual increases over the next four years and the 'ongoing transfer of unjustifiable costs arising from inefficiencies in the delivery of water services in Ireland' while calling for a 'fairer funding model' to sustain water services and cost competitiveness for businesses.' Uisce Eireann had originally suggested a 13 per cent increase in charges to the CRU, which decides the rate, alongside two alternative increases of 1.7 per cent – in line with the harmonised index of consumer prices for 2025 – and 6.9 per cent – the average growth in Uisce Eireann's approved allowed revenues from 2020 to 2024. During a consultation period on the decision, the CRU received 22 submissions which opposed any increase but it noted that while 'affordability and competitiveness are significant issues for non-domestic customers and the Irish economy', Uisce Eireann is required to run in a 'commercially viable manner'. The regulator noted the increase was 'similar, or lower than' increases in similar percentage increases in UK water utilities. In light of the submissions received, the CRU said the 9.8 per cent increase was 'the most balanced approach'. 'The CRU is aware of the impact of bill increases for certain non-domestic customers and has engaged with Uisce Éireann to ensure that there are measures in place when engaging with customers with financial difficulties.'
Globe and Mail
10-07-2025
- Business
- Globe and Mail
Can Intel Be Leaner & More Agile by Laying Off 529 Employees?
Intel Corporation INTC is reportedly laying off 529 employees across four locations in Oregon to minimize operating costs and reduce organizational complexity to better serve customers. These include software and hardware engineers, developers, managers, scientists and other domain specialists with backgrounds in artificial intelligence (AI) and cloud computing. A lion's share of the job cuts is taking place at Intel's Jones Farm Campus, which focuses on chip design work as well as research and development (R&D). The other facilities that are witnessing job cuts include the Aloha, Hawthorne Farm and Ronler Acres campuses, which support semiconductor research and manufacturing. Oregon boasts the largest number of Intel's facilities and workforce, with about 22,000 employees. By trimming its huge employee base, the company aims to eliminate unnecessary bureaucracy levels and become leaner and more agile, regaining its competitive edge. This follows a similar exercise a few days back, when the company decided to wind up its automotive architecture business as part of a broader restructuring process to trim operating costs and boost liquidity. Intel expects to free up significant resources by winding down this peripheral unit, thereby making more money available for R&D funding in the core PC and data center segments. Intel has been investing in expanding its manufacturing capacity to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy. Interim management is committed to keeping the core strategy unchanged despite efforts to drive operational efficiency and agility. The company is emphasizing the diligent execution of operational goals to establish itself as a leading foundry. It is focusing on simplifying parts of its portfolio to unlock efficiencies and create value. Other Tech Firms Laying Off Employees Microsoft Corporation MSFT has laid off 6,000-7,000 employees as part of a broader restructuring strategy focused on boosting AI innovation and reducing organizational layers. The job cuts are purportedly aimed at reducing redundancy, particularly in middle management and support functions. Microsoft is reallocating the freed-up resources toward high-growth AI areas like Azure AI, Copilot and custom silicon. In addition to some non-core roles within the Azure cloud, Microsoft laid off employees from its legacy hardware operations and gaming divisions. Meta Platforms, Inc. META has conducted multiple smaller rounds of layoffs this year, affecting around 3,600 employees across departments. A majority of the job cuts occurred in Meta's metaverse division, Reality Labs, as the company trimmed roles in hardware, AR/VR and software development that were deemed non-core. In addition, Meta eliminated various non-essential jobs while prioritizing AI-powered discovery businesses. INTC's Price Performance, Valuation and Estimates Intel shares have declined 30% over the past year against the industry 's growth of 23.5%. Going by the price/sales ratio, the company's shares currently trade at 1.97 forward sales, lower than 14.95 for the industry. Earnings estimates for 2025 have decreased 6.7% to 28 cents per share over the past 60 days, while the same for 2026 have declined 6.3% to 74 cents. Intel stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Higher. Faster. Sooner. Buy These Stocks Now A small number of stocks are primed for a breakout, and you have a chance to get in before they take off. At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We've combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month. You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days. Download the report free now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report
Yahoo
04-07-2025
- Automotive
- Yahoo
ATRI report: Rising costs continue to squeeze trucking industry
Rising costs collided with depressed freight rates, according to ATRI's latest operational costs of trucking benchmarking report. According to the data, the industry's average cost of operating a truck declined slightly by 0.4% to $2.260 per mile. That's good news but the freight devil lies in the details. When removing lower fuel costs, marginal costs increased 3.6% to $1.779, the highest costs ever recorded by ATRI for non-fuel operating costs. The report showed truckload carriers were hit hardest in operating margin (OR), operating at an average OR of -2.3% in 2024 compared to 3% in 2023 and 8% OR in 2022. Other modes saw operating margins continue to deteriorate, most sectors struggled with margins below 2%. Only the LTL sector maintained positive profitability at 11.6% OR. Reefer carriers fell from 6% OR in 2022, to 2% in 2023 before settling at barely above breakeven at 0.1%. Flatbed / Oversized saw a similar trend, OR fell from 7% in 2022 to 5% in 2023, then 0.4% for 2024. 'The trucking industry is facing the most challenging freight market in years, with loads down and costs increasing,' said Groendyke Transport, Inc. President and CEO Greg Hodgen in a press release. Several cost categories saw increases, with truck and trailer payments rising 8.3% to a record-high $0.390 per mile, and driver benefits costs increasing 4.8% to $0.197 per mile. Driver wages, traditionally the largest contributor to cost increases following the pandemic, rose more modestly at 2.4%, slightly below the inflation rate. The report saw numerous other operational adjustments made by carriers to weather the freight recession. Truck capacity dropped 2.2% as companies sold vehicles, empty miles increased to an average of 16.7%, and the drivers-per-truck ratio fell to 0.93 as carriers parked equipment. Many fleets also reduced non-driver staff by 6.8% as a cost-management strategy. Despite these challenges, there were some positive trends. Average truck age, dwell time per stop, and mileage between breakdowns all improved. Regarding dwell, the report notes, 'Overall average dwell time decreased slightly in 2024, by 2 minutes, to 1 hour and 38 minutes per stop – just 22 minutes below the industry-standard threshold for excessive driver detention. The source of this improvement, however, was limited exclusively to the truckload sector.' ACT Research recently released its June For-Hire Trucking Index, which showed continued deterioration in freight volumes alongside decreasing capacity. The diffusion index is based on a survey of carriers. A reading above 50 shows growth, while anything below 50 is degradation. The Volume Index saw its third consecutive month of softening, falling to 42.5 points (seasonally adjusted) in May, from 43.4 points in April. 'The myriad impacts of tariffs and opaqueness regarding future trade decisions have destroyed business planning and slowed economic activity,' according to ACT Research. 'While we may see some improvement in trade volumes ahead of the August 9th China trade decision, the pull-forward of freight into Q1 has necessitated a payback later this year.' In spite of sustained driver availability, fleets continue to struggle with profitability. The Driver Availability Index tightened 3.1 points in May to 50.9 points, the 37th consecutive month at or above 50. The report adds, 'Struggling owner-operators turning in their operating authorities have also provided a steady supply of experienced drivers for fleets. But after three years of weak rates/profitability, investments in driver training are under pressure. Roadcheck may have contributed to the still positive, but lower level of driver availability in May too.' The Capacity Index decreased to 46.4 in May from 47.1 in April, as carriers reduced their fleet tractor counts. Fleet purchase intentions remained significantly below historical norms, with only 27% of respondents planning to buy new equipment in the next three months, compared to the 54% long-term average. ACT describes fleet reluctance as 'generationally weak profits, economic uncertainty, and regulatory uncertainty.' The Pricing Index showed some improvement, rising 8.4 points to 47.8 in May from 39.4 in April, though this was largely attributed to the temporary tightening effect of the annual Roadcheck inspection event rather than fundamental market improvements. Private versus for-hire fleet dynamics remain a factor to watch. The report adds, 'The supply-side should contract as private fleets decelerate fleet growth and for-hire fleets remain on the sidelines. Rising equipment costs due to tariffs further that case, but the flip side to tariffs is slower freight market growth, which will prolong the recovery in the for-hire sector.' The post ATRI report: Rising costs continue to squeeze trucking industry appeared first on FreightWaves.
Auto Express
03-07-2025
- Automotive
- Auto Express
Electric car chargers blamed for high petrol prices by fuel industry
Spiralling operating costs, including the installation of EV chargers, is pushing up petrol prices – that's the view of the fuel industry following a report by the UK's competition regulator, which called out historically wide retailer margins. In its quarterly update on the fuel sector, the Competition and Markets Authority (CMA) set out how the cost of fuel remains stubbornly high despite having dipped in recent months. At the time of writing, petrol sits at an average of £1.34 per litre, while diesel costs around £1.41 per litre. Part of the reason for these lofty prices are wide retailer margins which, between January 2024 and March this year, averaged as much as 9.2 per cent and 8.1 per cent for standard retailers and supermarkets respectively. This, the CMA says, cost drivers an extra £1.6 billion over the course of 2023 compared with 2019 – and that figure won't have gone down much in 2025, given that margins have remained by and large the same. Advertisement - Article continues below However, while the CMA's 2023 market analysis suggests that operational costs weren't originally a factor in the increased margins, the Petrol Retailers Association (PRA) insists that rises in the National Living Wage, business rates and energy prices, and a surge in forecourt crime are all forcing firms to keep prices high. Skip advert Advertisement - Article continues below Interestingly, however, the PRA says that the installation of EV chargers is one of the greatest financial burdens in this regard. The organisation's executive director, Gordon Balmer, told Auto Express that despite the high margins associated with dispensing electricity via EV chargers, '[PRA] members are finding charging points take a long time – as long as 8-10 years – to recoup the initial cost associated with them. In fact, in some areas of the country it can cost £1.2 million just to ensure a correct level of power is being delivered.' With all of this combined, Balmer says, 'You cannot compare margins from five years ago to today with the hits we've had to take', pointing out that despite some investment from the Government in the EV charging infrastructure, many independent businesses (which make up 64 per cent of UK forecourts) are forced to fork out large sums to ensure proper connections with the grid. Advertisement - Article continues below The closure of UK oil refineries is also of concern to the PRA, because a lack of independence in this respect means that many firms will be forced to buy from abroad. 'As we start to see refineries disappear, inevitably wholesale prices will go up, [and] if wholesale prices go up, we'll have to import more, pushing prices up further,' Balmer explained. Nevertheless, despite the challenges facing the fuel industry, public reaction to the CMA's findings has been negative; the RAC's head of policy, Simon Williams, expressed concern, saying: 'Given that fuel is a major expense for households, and with eight-in-10 drivers dependent on their cars, it's disappointing to see they've paid over the odds yet again.' Fuel prices recently spiked due to the conflict between Israel and Iran, with the threat of the closure of the Strait of Hormuz (which five per cent of the world's oil passes through) pushing prices up even further. Thankfully, though, the recent ceasefire has calmed prices, meaning that drivers shouldn't be feeling too much extra pain at the pumps. There is some positivity for the future, too; despite the transition to EVs, Balmer believes the fuel industry will continue to thrive over the coming decades. 'There's cause to be optimistic,' he said. 'The convenience retail and car wash sectors of businesses are doing well.' Balmer also highlighted how 'operators that have invested will also sell a range of fuels', meaning EV chargers and hydrogen stations will continue to keep forecourts alive. Want the latest car news in your inbox? Sign up to the free Auto Express email newsletter... Find a car with the experts Car Deal of the Day: 717bhp BMW M5 Touring super-estate on a tasty lease deal Car Deal of the Day: 717bhp BMW M5 Touring super-estate on a tasty lease deal The BMW M5 Touring is M car royalty, with a thoroughly impressive PHEV powertrain. It's our Deal of the Day for 29 June Range Rover Sport SV gets massive £35k price drop as it enters series-production Range Rover Sport SV gets massive £35k price drop as it enters series-production There's also a new SV Black trim, and a Range Rover Sport Stealth Package for non SVs New 2026 Honda 0 SUV: Japanese brand to finally have an EV to rival Tesla and BYD New 2026 Honda 0 SUV: Japanese brand to finally have an EV to rival Tesla and BYD Honda EV plans are gathering momentum, and they'll be realised in the groundbreaking 0 SUV next year
Yahoo
17-06-2025
- Business
- Yahoo
Will Elevated Costs Undermine The TJX Companies' Off-Price Edge?
The TJX Companies TJX is feeling the strain of elevated operating costs, particularly in wages and sourcing. In the first quarter of fiscal 2026, selling, general and administrative (SG&A) expenses rose to 19.4% of sales, up 20 basis points (bps) from the prior-year quarter, primarily due to higher store payroll costs. Gross margin declined 50 bps to 29.5%, with unfavorable inventory hedge adjustments adding to the bigger concern lies ahead. Management expects fiscal second-quarter gross margin to decline another 40 bps year over year to 30%, citing tariff-related costs on merchandise already in transit when new duties took effect in March and April. While the company is pursuing mitigation strategies, such as pricing adjustments and sourcing shifts, cost pressures remain. For fiscal 2026, The TJX Companies projects gross margin between 30.4% and 30.5%, a 10-20 bps drop from the prior year. SG&A is expected to be 19.3%, a slight decrease from last year's 19.4%.While TJX continues to execute its off-price model steadily, ongoing inflation in wages, freight and tariffs introduces added complexity to maintaining the gross margin. As a retailer positioned on delivering branded value at competitive prices, its ability to manage these rising costs without compromising pricing appeal will be closely watched. Striking the right balance between margin preservation and value positioning remains important in an increasingly competitive retail environment. Dollar General DG is grappling with cost inflation. In the first quarter of fiscal 2025, Dollar General reported an 8.5% year-over-year increase in SG&A, which rose 77 basis points to 25.4% of sales. The uptick was caused by higher labor costs, incentive compensation, and repairs and maintenance. Dollar General expects SG&A to remain under pressure in the fiscal second quarter, with a larger year-over-year increase in incentive compensation as it laps last year's accrual Stores BURL is also facing cost headwinds. In the first quarter of fiscal 2025, Burlington saw SG&A expenses rise 4.8% year over year, while sourcing costs jumped to $197 million, up from $183 million. As a percentage of sales, sourcing costs ticked up 10 basis points. Burlington projects adjusted EBIT margin in the range of down 30 bps to flat year over year in the fiscal second quarter, with additional pressure from lease-related costs and shifting expense timing. Shares of The TJX Companies have lost 8.2% in the past month compared with the industry's decline of 5%. Image Source: Zacks Investment Research From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 26.74X, down from the industry's average of 32.42X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for TJX's fiscal 2026 earnings implies year-over-year growth of 4.7%, whereas its fiscal 2027 earnings estimate indicates a year-over-year uptick of 10.3%. Image Source: Zacks Investment Research TJX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX) : Free Stock Analysis Report Dollar General Corporation (DG) : Free Stock Analysis Report Burlington Stores, Inc. (BURL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
