COMPANY NEWS IN BRIEF

AB InBev raises forecast

Anheuser-Busch InBev, the world's largest brewer, upgraded its forecast for 2021 earnings growth on Thursday after posting a surprise increase in third-quarter profit, buoyed by beer sales in Brazil.

The maker of Budweiser, Corona and Stella Artois said it now expects core profit or earnings before interest, tax, depreciation and amortisation to grow between 10% and 12% in 2021 compared with an 8%-12% growth forecast earlier.

The Belgium-based brewer said core profit rose 3.0% on a like-for-like basis in the July-Sept period, against an expected 2.3% drop, according to a company-compiled poll. AB InBev said its revenue grew 15.3% in Brazil as consumers drank more and purchased higher-priced beers.

Revenue and profits were also higher in Colombia and South Africa, reflecting easing of Covid-19 restrictions, and in Europe as vaccination rates increased. However, they declined in the United States, where there were supply chain disruptions, in Mexico, a year on from post-lockdown inventory replenishment, and in China, where Covid-19 restrictions disproportionately hit its key regions.

AB InBev's results follow mixed earnings reported by its rivals on Wednesday. Carlsberg, the world's number three brewer, also raised its 2021 profit forecast after higher-than-expected third-quarter revenue, helped by recovery in Europe and China.

By contrast, global number two Heineken reported a steeper-than-expected drop in beer sales in the third quarter, hit by a lockdown in Vietnam, while retaining its forecast for full-year results at below pre-pandemic levels. -Nampa/Reuters

Aspen to boost manufacturing capacity

South Africa's Aspen Pharmacare is aiming to ramp up its Covid-19 vaccine manufacturing capacity to 1.3 billion doses a year by February 2024, up from annual output of around 250 million doses now, the company's CEO told Reuters.

Aspen is doing the final stages of manufacturing for Johnson & Johnson's Covid-19 vaccine in a so-called "fill and finish" deal, but CEO Stephen Saad said in an interview that the companies were close to announcing a broader deal for Aspen to produce Johnson & Johnson's Covid-19 shot under licence. -Nampa/Reuters

McDonald's sales soar

Higher US prices and celebrity-themed meals boosted quarterly comparable sales at McDonald's Corp, though the company struggled to keep restaurants open at full capacity amid labour shortages and Covid-19 outbreaks, it reported on Wednesday.

US same-store sales grew 9.6% in the third quarter ended Sept. 30, compared with estimates for 8.27%, according to Refinitiv IBES data.

Global comparable sales also jumped 12.7% in the quarter versus estimates of 10.31% as international markets slowly recovered from the pandemic. Shares in the world's largest burger chain rose about 2.2% to US$241.70 in late morning trading.

The US labour shortage caused some locations to close early and lose speed of service, Chief Executive Chris Kempczinski said in an earnings call, adding problems were not "unsolvable."

McDonald's has had to push back some new restaurant openings into early 2022 in part because global supply-chain problems made it difficult to get kitchen and tech equipment. -Nampa/Reuters

GM outlook doesn't impress

General Motors Co offered a profit forecast for 2021 that disappointed analysts on Wednesday, as its third-quarter earnings were hit by a global semiconductor shortage and rising commodity prices, factors it expects to continue until late 2022.

Chief Executive Mary Barra attempted to counter the downbeat financial results by focusing on GM's plans for a wave of electric vehicles and new software-driven services. Still, shares sank 5.3% in midday trading.

GM's quarterly profit and revenue were dragged down by a drop in wholesale shipments to dealers amid the chip shortage, as well as higher commodity and logistics costs, company executives said.

GM said the negative impact on earnings was partially offset by strong pricing on full-size pickups and SUVs and an agreement by supplier LG Electronics to cover most of an anticipated US$2 billion in costs related to the recall of the Bolt EV and Bolt EUV. -Nampa/Reuters

Uber partners with Hertz

Uber Technologies Inc on Wednesday said it is launching a new partnership with rental car company Hertz to offer 50 000 Tesla Inc vehicles as a rental option for its ride-hail drivers by 2023.

Uber drivers can rent a Tesla through Hertz starting on Nov. 1 in Los Angeles, San Francisco, San Diego and Washington DC, with the program later this year expanding to cities nationwide, the ride-hail company said in a blog post.

The announcement comes after Hertz on Monday said it would order 100 000 Tesla vehicles by the end of 2022, meaning that half of the rental company's Tesla fleet would be reserved exclusively for Uber drivers.

News of the biggest-ever Tesla order led to a share price rally and saw the electric vehicle company's market value surpass US$1 trillion on Monday.

Hertz on Wednesday also announced a separate partnership with online used-car dealer Carvana Co, whose shares rose 3% in morning trade. Under the agreement, Hertz would reduce its reliance on mass auctions to offload used rental fleet vehicles and instead sell vehicles directly to consumers through Carvana's sales channels. -Nampa/Reuters