Company news in brief

SAA to cancel dozens of flights in FebruarySouth Africa's embattled national airline on Thursday announced plans to scrap close to one hundred domestic and international flights in February to reduce costs.Cash-strapped South African Airways (SAA) was pushed to the brink of bankruptcy after a costly week-long strike by thousands of its workers last month. The flag carrier was placed under state-approved rescue plan as a last-ditch bid to avoid total collapse.A total of 48 domestic and 48 international flights will be cancelled next month, including trips to Washington and Nairobi.SAA announced the cancellations one day after a state-owned South African bank offered to lend it R3.5 billion.It said the "conservation of cash" through "various cost reduction measures" would be critical to running an "efficient airline".Chief commercial officer Philip Saunders vowed to minimise disruption and said affected customers would be accommodate on alternative flights. – Nampa/ReutersSasol sees lower H1 earnings after Lake Charles unit fireSouth African petrochemicals group Sasol said on Friday it expects lower first-half headline earnings per share (HEPS) and also cut earnings outlook from its Lake Charles Chemicals Project following a fire mishap at one of its unit last month.The company said it expects core earnings from the Lake Charles project to come in between $50 million and $100 million for the financial year 2020 following an explosion and a fire at the low-density polyethylene unit in Louisiana, United States on January 24.In August, Sasol had lowered its core earnings outlook for the US-based ethane cracker project to betweenUS$150 million and US$300 million from US$300 million-US$350 million.Sasol expects its first-half HEPS to be between R4.79 rand and R7.11, for the six months ended Dec. 31, compared with HEPS of R23.25 last year.Half-year earnings will also be hit by about R1.7 billion in depreciation charges and nearly R2 billion in finance charges as the Lake Charles units reach beneficial operation, the South African company said, adding that results were also dented by a weak macroeconomic environment that resulted in lower margins and operating profit. – Nampa/ReutersMTN announces US$1.6bn Nigeria investmentSouth African mobile giant MTN has said it will make investments worth US$1.6 billion (1.45 billion euro) in Nigeria as it seeks to put a series of legal wrangles to bed.The telecommunications firm said that its top executives made the announcement during a meeting with Nigerian president Muhammadu Buhari in Abuja."As part of its ongoing commitment to Nigeria, MTN announced a capital investment programme of US$1.6 billion over the next three years to strengthen and expand its network and operations in the country," a statement from the company said.MTN has faced a string of financial claims from Nigeria and last May floated its shares on the stock exchange in the West African country.Earlier last month Nigeria's attorney general withdrew a demand for around US$2 billion in back taxes in the latest step towards resolving the legal woes. – Nampa/AFPDiageo tempers sales growth expectationsDiageo, the world's biggest spirits company, tempered its annual sales growth expectations on Thursday, due partly to tough trading conditions for its key Scotch whisky business in Latin America and the Middle East.The maker of Johnnie Walker Scotch whisky, Smirnoff vodka and Guinness stout said it expected annual underlying net sales growth to come in towards the lower end of its 4 to 6% mid-term guidance range, amid rising global trade uncertainty.The company highlighted volatility in India, Latin America and the Caribbean and said it saw reduced inventory levels and lower passenger traffic including through Hong Kong in its travel retail arm.Diageo, which sells 200 brands in 180 countries, also said operating profit rose 0.5% to 2.44 billion pounds (US$3.21 billion) in the six months ended Dec. 31."There is ongoing uncertainty in the global trade environment and we would not be immune from further policy changes," chief executive officer Ivan Menezes said.Coca-Cola reports jump in 4Q profitsCoca-Cola reported a jump in fourth-quarter profits Thursday behind higher sales of soda and other beverages, especially in Latin America and Asia.The soda giant scored fourth-quarter earnings of US$2.0 billion, more than double the result from the year-ago period, a quarter marred by asset impairments.Revenues rose 16.2% to US$9.1 billion.The soda giant pointed to strong profitability in its trademark Coca-Cola brand, which was boosted by newer coffee-flaured cola offerings, as well as its diet drink, Coca-Cola Zero Sugar.Coca-Cola projected 5% growth in revenues in 2020, excluding the effect of acquisitions and currency movements. The company forecast 8% growth in currency neutral operating income. – Nampa/AFP

Company news in brief

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Namibian Sun 2025-10-02

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Company news in brief

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Namibian Sun 2025-10-02

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