The Malta Independent 9 June 2025, Monday
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Malta Independent Saturday, 23 October 2010, 00:00 Last update: about 16 years ago

Nestle 9-month saleup 4.1%

Nestle, the world's biggest food and drink company, said Friday that its sales over the first nine months of the year increased by just under 4.1 percent to 82.8 billion Swiss francs ($85.6 billion). The company, whose brands include Kit Kat, Nestle and Perrier and Haagen-Dazs, reported sales of 79.6 billion francs for the same period last year. Nestle saw sales grow in all regions and categories, with food and beverage sales reaching 77 billion francs. However, adverse currency conditions — mainly related to the dollar's weakness — reduced revenue by 2.7 percent. "The first half's growth momentum continued unabated in the third quarter, providing a good base for the full year as we face challenging comparatives in the final quarter," chief executive Paul Bulcke said. Nestle has been realigning its portfolio over the past quarter, selling its remaining stake in eye care company Alcon to pharmaceutical giant Novartis and opening a new health science division aimed at developing medicinal food products.

Euro up slightly as

G-20 ministers meet

The euro is a little higher against the dollar as finance officials from the Group of 20 meet in South Korea amid growing global tensions over exchange rates. The 16-nation euro bought $1.3962 in Europe early Friday, more or less unchanged from where it stood in late New York trading. The euro has been buoyed recently by expectations that the Federal Reserve will be pumping more money into the U.S. economy. The British pound recovered some of the ground it lost against the dollar on Thursday, climbing to $1.5738 from $1.5713. The dollar also went into reverse against the Japanese currency, slipping to 81.10 yen from 81.27 yen. On Wednesday, it sank to a fresh 15-year low of 80.85 yen.

Oil rises to near $81

as traders mull Fed moves

Oil prices rose to near $81 a barrel Friday in Asia, rebounding slightly from the previous session's steep drop, as traders mull the possible effects of anticipated moves by the U.S. Federal Reserve to spur economic growth. Benchmark oil for December delivery was up 40 cents to $80.96 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost $1.98 to settle at $80.56 on Thursday. Oil has seesawed above $80 this week as investors speculate on possible Fed measures known as quantitative easing, such as buying Treasury bonds to help boost money in circulation and bank lending. The Fed next meets on Nov. 2 and 3. "This week's price volatility is likely to continue for another week and a half until the Fed meeting provides some clarity regarding the extent of widely expected quantitative easing," Ritterbusch and Associates said. "We look for a sizable easing effort to likely weaken the dollar and bolster equities and enhance oil's appeal as an inflation hedge or valued asset."

Fiat: 35% Chrysler share

set for 2011

Fiat CEO Sergio Marchionne, who also runs Chrysler LCC, says Fiat expects to raise its stake in Chrysler to 35 percent by the end of 2011, but that hurdles remain. He spoke Thursday as Fiat Group SpA raised its 2010 forecasts after net profits rose to €170 million ($236 million) from €21 million a year earlier due to higher sales of trucks and tractors. As a result of the strong results, the Italian automaker raised its 2010 targets, saying revenues would top €55 billion — €5 billion more than previously stated. It also said trading profit would be at least €2 billion, nearly double previous guidance of €1.2 billion. Raising the outlook, he said, indicated "what we consider a permanent change in trading conditions in the market in which we function." Fiat shares closed up 4.4 percent to €12.24 in Milan trading. Fiat expects to raise its 20 percent share in Chrysler to 25 percent with the introduction of the iconic Fiat 500 city car to be launched in the United States with Fiat's MultiAir engine technology in January. Marchionne said that 5 percent increase should take effect in the fourth quarter of this year, or first quarter of next. The second 5 percent increment will be for the introduction of a car that gets 40 miles per gallon, sometime by the end of 2011, the CEO told a conference call after reporting third-quarter earnings of €170 million ($236 million). The third 5 percent increment is for the international distribution of Chrysler products, which Marchionne said was related to sales in Latin America. "Fiat is technically in compliance with that requirement. The execution of that obligation is something which is fraught with difficulties," Marchionne said, due to rules governing management of the dealership network in Brazil. Fiat is working with U.S. officials, who set the terms for the stake increases when Fiat took the initial 20 percent share in mid-2009, to find a solution or a replacement of the condition. Fiat took a 20 percent share in Chrysler after it emerged from bankruptcy in exchange for clean-engine and small car technology, as well as management know-how. Marchionne said he expected some resolution by the end of this year, and that the 5% increment would be triggered along with the 40 mph car.

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