Company news in brief
Vale says US$4 bn in assets frozen
Brazilian authorities have frozen more than US$4 billion dollars' worth of assets belonging to Vale over a deadly dam collapse, the mining giant said Wednesday, as it reported a 24.6% increase in full-year net profit.
For 2018, the world's top iron ore producer said net profit rose to US$6.86 billion on a strong fourth-quarter performance. Its full-year operating revenue reached US$36.58 billion, up 7.7% from the previous year.
Vale president Fabio Schvartsman and three executives temporarily stepped down in early March after prosecutors recommended their dismissal over the crisis.
More than two months after the disaster, environmental activists say poisonous sludge from the dam has reached the Sao Francisco River - Brazil´s second longest - hundreds of kilometres downstream.
The disaster was the second involving Vale in three years in the mineral-rich region. So far, Vale says, its water quality analysis shows toxicity levels near the dam are "below the legal limits for mining tailings" and are "not harmful to health". – Nampa/AFP
Lyft raises IPO price range
Ride-hailing company Lyft Inc said on Wednesday that the price range of its initial public offering was raised between US$70 and US$72 per share.
At the top end of the revised range, Lyft could raise as much as US$2.21 billion.
The company had previously expected the IPO of its 30.7 million shares to be priced in the range of US$62 to US$68 per share, Lyft said in a filing.
Lyft's IPO was oversubscribed, Reuters reported last week.
The company's progress in its IPO could bode well for larger rival Uber Technologies Inc, which is planning to kick off its IPO in April, Reuters has reported. It has been valued by investment bankers at as much as US$120 billion. – Nampa/Reuters
S&P cuts Jaguar Land Rover, Tata ratings
S&P said on Wednesday it had downgraded its credit rating on Jaguar Land Rover, and its owner, even deeper into junk and put it on review for a possible further downgrade due to the growing risks of a no-deal Brexit and US import tariffs.
S&P cut its rating on senior unsecured notes of Jaguar (JLR), Britain's biggest carmaker, and its owner India's Tata Motors Ltd to 'B+' from 'BB-' following JLR's weaker than expected third-quarter results.
It said it could lower the JLR rating further, most likely by one notch, if the carmaker fails to meet the base-case expectations for full-year results, Britain leaves the EU without a deal or Washington slaps new import tariffs on cars.
Fitch ratings agency also put Jaguar under review in early February.
The moves, which usually increase a company's funding costs, highlight growing concerns about disruption to industrial groups with complex supply chains spread across the EU and beyond from Britain's potentially chaotic departure from the bloc. – Nampa/Reuters
EU watchdog fines Fitch millions
The European Union's markets watchdog has fined credit rating agency Fitch a record 5.13 million euros (US$5.78 million) for breaching rules aimed at avoiding conflicts of interest.
The European Securities and Markets Authority (ESMA) said yesterday that, between June 2013 and April 2018, 20% of Fitch subsidiaries in Britain, France and Spain were indirectly owned by an individual through an entity in France.
At the same time the shareholder, which ESMA does not name, was sitting on boards of three entities being rated by the three subsidiaries of Fitch.
Fitch is owned by US publisher Hearst after buying stakes from France's Fimalac. It is one of the "Big Three" credit rating agencies that dominate the sector globally.
ESMA authorises and regulates ratings agencies in the EU. – Nampa/Reuters
Ford to leave Russian car market
Ford Motor Co's Russian joint venture Ford Sollers will close two assembly plants and an engine factory in Russia, exiting the country's passenger vehicle market, resulting in charges of about US$450 million to US$500 million.
The move is part of a restructuring that will see Russia's Sollers assume control of the venture, which is currently led by the US automaker, the companies said in a statement on Wednesday.
Industry sources told Reuters this month that Ford was considering closing Russian plants as it was reviewing operations in unprofitable regions.
The No. 2 US carmaker said the closures would lead to "significant" job losses, along with the closure of assembly plants in Naberezhnye Chelny and St. Petersburg, and an engine plant in Elabuga.
The restructuring follows similar actions in South America and Europe as Ford works to return to profitability in money-losing markets.
Ford also has been negotiating to expand a commercial vehicle and pickup truck alliance with Germany's Volkswagen AG, with investors focused on potential partnerships around the development of electric and self-driving vehicles. – Nampa/Reuters
Brazilian authorities have frozen more than US$4 billion dollars' worth of assets belonging to Vale over a deadly dam collapse, the mining giant said Wednesday, as it reported a 24.6% increase in full-year net profit.
For 2018, the world's top iron ore producer said net profit rose to US$6.86 billion on a strong fourth-quarter performance. Its full-year operating revenue reached US$36.58 billion, up 7.7% from the previous year.
Vale president Fabio Schvartsman and three executives temporarily stepped down in early March after prosecutors recommended their dismissal over the crisis.
More than two months after the disaster, environmental activists say poisonous sludge from the dam has reached the Sao Francisco River - Brazil´s second longest - hundreds of kilometres downstream.
The disaster was the second involving Vale in three years in the mineral-rich region. So far, Vale says, its water quality analysis shows toxicity levels near the dam are "below the legal limits for mining tailings" and are "not harmful to health". – Nampa/AFP
Lyft raises IPO price range
Ride-hailing company Lyft Inc said on Wednesday that the price range of its initial public offering was raised between US$70 and US$72 per share.
At the top end of the revised range, Lyft could raise as much as US$2.21 billion.
The company had previously expected the IPO of its 30.7 million shares to be priced in the range of US$62 to US$68 per share, Lyft said in a filing.
Lyft's IPO was oversubscribed, Reuters reported last week.
The company's progress in its IPO could bode well for larger rival Uber Technologies Inc, which is planning to kick off its IPO in April, Reuters has reported. It has been valued by investment bankers at as much as US$120 billion. – Nampa/Reuters
S&P cuts Jaguar Land Rover, Tata ratings
S&P said on Wednesday it had downgraded its credit rating on Jaguar Land Rover, and its owner, even deeper into junk and put it on review for a possible further downgrade due to the growing risks of a no-deal Brexit and US import tariffs.
S&P cut its rating on senior unsecured notes of Jaguar (JLR), Britain's biggest carmaker, and its owner India's Tata Motors Ltd to 'B+' from 'BB-' following JLR's weaker than expected third-quarter results.
It said it could lower the JLR rating further, most likely by one notch, if the carmaker fails to meet the base-case expectations for full-year results, Britain leaves the EU without a deal or Washington slaps new import tariffs on cars.
Fitch ratings agency also put Jaguar under review in early February.
The moves, which usually increase a company's funding costs, highlight growing concerns about disruption to industrial groups with complex supply chains spread across the EU and beyond from Britain's potentially chaotic departure from the bloc. – Nampa/Reuters
EU watchdog fines Fitch millions
The European Union's markets watchdog has fined credit rating agency Fitch a record 5.13 million euros (US$5.78 million) for breaching rules aimed at avoiding conflicts of interest.
The European Securities and Markets Authority (ESMA) said yesterday that, between June 2013 and April 2018, 20% of Fitch subsidiaries in Britain, France and Spain were indirectly owned by an individual through an entity in France.
At the same time the shareholder, which ESMA does not name, was sitting on boards of three entities being rated by the three subsidiaries of Fitch.
Fitch is owned by US publisher Hearst after buying stakes from France's Fimalac. It is one of the "Big Three" credit rating agencies that dominate the sector globally.
ESMA authorises and regulates ratings agencies in the EU. – Nampa/Reuters
Ford to leave Russian car market
Ford Motor Co's Russian joint venture Ford Sollers will close two assembly plants and an engine factory in Russia, exiting the country's passenger vehicle market, resulting in charges of about US$450 million to US$500 million.
The move is part of a restructuring that will see Russia's Sollers assume control of the venture, which is currently led by the US automaker, the companies said in a statement on Wednesday.
Industry sources told Reuters this month that Ford was considering closing Russian plants as it was reviewing operations in unprofitable regions.
The No. 2 US carmaker said the closures would lead to "significant" job losses, along with the closure of assembly plants in Naberezhnye Chelny and St. Petersburg, and an engine plant in Elabuga.
The restructuring follows similar actions in South America and Europe as Ford works to return to profitability in money-losing markets.
Ford also has been negotiating to expand a commercial vehicle and pickup truck alliance with Germany's Volkswagen AG, with investors focused on potential partnerships around the development of electric and self-driving vehicles. – Nampa/Reuters
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