Latest news with #tradetariffs
Times
12 hours ago
- Automotive
- Times
Profits halved at tariff-hit Jaguar Land Rover
Profits at Britain's largest automotive employer almost halved after a sharp drop in sales of luxury vehicles and a hit from US trade tariffs. Jaguar Land Rover, which employs more than 33,000 people in the UK, said pre-tax profit fell 49.4 per cent to £351 million in the three months to the end of June from £693 million in the same period a year ago. It also reported a 9.2 per cent drop in quarterly revenue to £6.6 billion after a temporary pause in exports to the US and the planned wind-down of older Jaguar models before the launch of new electric ranges next year. The carmaker, which is owned by Tata Motors, the Indian auto group, said US tariffs had a 'direct and material impact on profitability and cashflow in the period'. Over the three months the business burnt through £750 million of cash, compared with cash inflows of £1.3 billion in the previous quarter. However, the company said the recently signed trade deal between Britain and America 'will significantly reduce the financial impact of US tariffs going forward'. JLR halted new shipments to the US in April but restarted exports in early May amid hopes that a trade deal for the sector would be struck. Wholesale sales in North America, its largest market historically accounting for nearly a third of all volumes, dropped by 12.2 per cent year-on-year in the quarter. Last month the company announced plans to cut up to 500 management jobs as part of a voluntary redundancy programme, affecting about 1.5 per cent of the workforce. Adrian Mardell, chief executive, said the latest financial results results came amid 'challenging global economic conditions'. He added: 'We are grateful to the UK and US governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on July 27.' The company will be paying 15 per cent tariffs on exports to the US of its Defender model because it is built in the European Union in Slovakia. This remodelled version of the old Land Rover vehicle accounts for about 25 per cent of all JLR sales. It has been a challenging time in other respects for the carmaker, with its recent rebranding and advertising strategy attracting criticism. Mardell announced plans to retire in November after three years in charge and 35 years with the company. He will be replaced by PB Balaji, group financial officer of Tata Motors. JLR's retail sales in the quarter fell to 94,000 from 111,000 a year ago, although not all of that was down to tariffs. Sales of Jaguar cars fell to just 5,300 in the past quarter, a year-on-year fall of 66 per cent, as the company withdraws its petrol and diesel models before the Jaguar brand's much-delayed rebirth as an all-electric luxury marque.
Bloomberg
2 days ago
- Business
- Bloomberg
Brazil's Suzano Cuts Pulp Production on Uncertainty Over Tariffs
Brazilian company Suzano SA is cutting wood-pulp production after negotiations with clients in China, its biggest market, were hit by uncertainty over US President Donald Trump's trade tariffs. The world's top exporter of the raw material used in everything from packaging to toilet paper is reducing output for the next 12 months, Suzano said in a statement on Wednesday as it released second-quarter results. Production will be cut by 3.5%, or roughly 450,000 tons.
Daily Mail
3 days ago
- Business
- Daily Mail
Shares in Coca-Cola bottling firms shattered as tariffs hit
Shares in London-listed firms that bottle Coca-Cola outside of the US plunged on Wednesday as investors weighed the impact of weaker consumer strength as well as trade tariffs. Coca-Cola HBC and Coca-Cola Europacific Partners, which bottle Coca-Cola and other drinks in different regions, have been raising prices to shield margins from elevated costs and lower spending. The pair were the biggest fallers on the FTSE 100 by early afternoon despite solid first half trading updates, as each firm's chief executive acknowledged a challenging backdrop. HBC, which bottles drinks in 29 counties including Italy, Russia and Nigeria, forecast annual organic revenue growth at the top end of its 6 to 8 per cent guidance range but fell short of average market estimates of 8.8 per cent. Its first half volumes were broadly in line with last year, despite 'low-single digit' declines in fizzy drinks and coffee sales, amid 'ongoing headwinds from consumer sensitivity in some markets'. Coca-Cola HBC shares were down 7 per cent to 3,650p by midafternoon. That was despite UBS analysts describing volume growth as 'best in class' and the firm hiking prices to offset prior year foreign exchange devaluations. Meanwhile, Coca-Cola Europacific Partners, which operates in 31 countries in Western Europe, Australia, Asia Pacific and Southeast Asia, guided investors to expect revenue growth of 3 to 4 per cent, down from an earlier forecast of about 4 per cent. The group cited 'uncertainty and volatility from the impact and extent of actual and promised tariff adjustments' among its principal risks, but reiterated full-year profit guidance. Boss Damian Gammel said: 'While the global macroeconomic environment is volatile, we remain resilient. Strong cash generation is supporting record investment in future growth.' Coca-Cola Europacific Partners fell 7 per cent to 6,730p. The bottlers have over the past year also faced backlashes from consumers in Indonesia, where CCEP operates, and Egypt, where HBC operates, as consumers shied away from US brands due to Israel's war in Gaza.
Daily Mail
3 days ago
- Business
- Daily Mail
Shares in Coca-Cola bottling firms shattered as tariffs hit and consumer demand loses its fizz
Shares in London-listed firms that bottle Coca-Cola outside of the US plunged on Wednesday as investors weighed the impact of weaker consumer strength as well as trade tariffs. Coca-Cola HBC and Coca-Cola Europacific Partners, which bottle Coca-Cola and other drinks in different regions, have been raising prices to shield margins from elevated costs and lower spending. The pair were the biggest fallers on the FTSE 100 by early afternoon despite solid first half trading updates, as each firm's chief executive acknowledged a challenging backdrop. HBC, which bottles drinks in 29 counties including Italy, Russia and Nigeria, forecast annual organic revenue growth at the top end of its 6 to 8 per cent guidance range but fell short of average market estimates of 8.8 per cent. Its first half volumes were broadly in line with last year, despite 'low-single digit' declines in fizzy drinks and coffee sales, amid 'ongoing headwinds from consumer sensitivity in some markets'. Coca-Cola HBC also said US tariffs imposed on Chinese and European goods are expected to 'drive inflation and slow growth'. Boss Zoran Bogdanovic added: 'We are mindful of what is a challenging and unpredictable macroeconomic and geopolitical environment.' Coca-Cola HBC shares were down 7 per cent to 3,650p by midafternoon. That was despite UBS analysts describing volume growth as 'best in class' and the firm hiking prices to offset prior year foreign exchange devaluations. Meanwhile, Coca-Cola Europacific Partners, which operates in 31 countries in Western Europe, Australia, Asia Pacific and Southeast Asia, guided investors to expect revenue growth of 3 to 4 per cent, down from an earlier forecast of about 4 per cent. The group cited 'uncertainty and volatility from the impact and extent of actual and promised tariff adjustments' among its principal risks, but reiterated full-year profit guidance. Boss Damian Gammel said: 'While the global macroeconomic environment is volatile, we remain resilient. Strong cash generation is supporting record investment in future growth.' Coca-Cola Europacific Partners fell 7 per cent to 6,730p The bottlers have over the past year also faced backlashes from consumers in Indonesia, where CCEP operates, and Egypt, where HBC operates, as consumers shied away from US brands due to Israel's war in Gaza.
Yahoo
4 days ago
- Business
- Yahoo
Brazil central bank warns on US tariffs, vows to anchor inflation expectations
By Marcela Ayres BRASILIA (Reuters) -Brazil's central bank on Tuesday flagged caution over the impact of steeper U.S. trade tariffs, reaffirming its commitment to a policy stance aimed at lowering inflation expectations after signaling interest rates will remain on hold for long. In the minutes from its latest policy meeting, where policymakers paused an aggressive tightening cycle that had increased the benchmark rate by 450 basis points to a near 20-year high of 15%, the bank said that the 50% U.S. levies on goods from Brazil could have "significant" effects on specific sectors. The broader macroeconomic effects remain uncertain and will depend on the course of negotiations and market perceptions of risk, it said. Policymakers emphasized they are closely monitoring potential effects on the real economy and financial markets, and reinforced the central bank's cautious stance in a scenario of heightened uncertainty. They also noted that inflation expectations among many market participants remain above the official 3% target, with no significant changes in longer-term projections, even as implied inflation measures derived from financial assets have declined. "The committee reaffirmed and renewed its commitment to reanchoring expectations and to conducting a monetary policy that supports such a movement," the minutes said. The current scenario "prescribes a significantly contractionary monetary policy for a very prolonged period to ensure the convergence of inflation to the target," it added. While acknowledging clearer signs of moderation in credit markets amid a high-interest rate environment, the central bank said the labor market remained resilient, and said it was "natural" to observe mixed signals at "turning points in the economic cycle." Latin America's largest economy is evolving broadly in line with expectations, said the central bank, with slowing growth seen as necessary to widen the output gap and ensure inflation control.
