Largest producer of healthcare products worldwide Johnson & Johnson reported 29 percent profit growth for first quarter of this year, which is a sign that the company continues to recover from the crisis, which affected its operations last year, forward AP. Much of the growth of profit, however, due to the effects off, bearing the company 910 million dollars in revenue from the liquidation fee. Its sales have also increased – by 4% yoy to 15.63 billion dollars. U.S. sales decreased by 5% over the past 12 months, while its revenues from international markets increased by 14.4 per cent. Nearly two-thirds of this increase is due to changes in exchange rates over the past year. The net profit of Johnson & Johnson for the first quarter amounted to 4.53 billion dollars or 1.62 dollars per share, compared with a positive result of 3.51 billion dollars or 1.26 dollars per share for the same period 2009. If one-off effects are excluded, the positive financial result increased by 3.1 percent to 3.6 billion dollars or 1.29 dollars per share. This was more than economists forecast profit of 1.27 dollars per share and revenue of 15.6 billion dollars. Relatively good financial results for the company’s first quarter was marred by the projections of its management, which reduced its forecast for the entire 2010 to U.S. $ 4.8 earnings per share compared to previous 4.9 dollars.
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The largest company producing soft drinks in the world – the U.S. Coca-Cola, announced profit growth of 19 per cent in the first quarter. That has contributed to the strong performance of the company’s products on foreign markets. This is offset significant cost savings to American consumers because of the crisis. Profits of Coca-Cola for the quarter to April 2 at the rate of 1.61 billion dollars, or 69 cents a share, compared to a profit of 1.35 billion dollars, or 58 cents a share for the same period last year. Company revenue rose 5 percent to 7.53 billion dollars. The results of Coca-Cola are among the few who were below the expectations of market analysts for major companies in the U.S.. The forecasts were for earnings of 75 cents per share on revenue of 7.72 billion dollars, transmits AP. Most improved results of Coca-Cola in Eurasia and Africa, where sales volumes increased by 11 per cent. Surge in India is 29 per cent, while in Turkey – 11 per cent. Double-digit growth was achieved even in Russia, Egypt, Brazil, Vietnam and the Philippines.
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Investment bank Goldman Sachs, whose popular name in recent days because of the investigation regarding the allegations raised against her for fraud in mortgage securities surprise their shareholders with news that its profit rose much more than expected with 91% in the first quarter of this year forward Bloomberg. Goldman Sachs, which is known as one of the oldest and most profitable investment banks on Wall Street, was involved in a scandal investigation after financial regulators in the U.S. in January accused of market manipulation, conflicts of interest and major securities fraud secured with high-risk mortgage loans. Net profit of the bank for three months to the end of March increased to 3.46 billion dollars or 5.59 dollars per share, compared with a positive result of 1.81 billion dollars or 3.39 dollars per share, year earlier. Analysts predicted New York-based Goldman Sachs to take account of earnings per share of 4.14 dollars. Revenue from the bank’s trading debt securities, currencies and raw materials increased by 13 per cent for the first three months of the year to 7.39 billion dollars. Proceeds from trading in shares jump 18% yoy to 2.35 billion dollars. The cost of salaries and bonuses, which are most significant cost of revenue of the bank increased by 17 percent to 5.49 billion dollars, equivalent to 43% of its total revenue.
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The European Commission may approve compensation for air-companies, which lose every day $ 250 million, news agency Reuters, citing sources at the ongoing extraordinary meeting in Madrid of Transport Ministers of the EU. It involved the Bulgarian Minister Alexander Tsvetkov. His colleagues who could not freely fly to the Spanish capital involved in conferencing. “However, safety will be the main factor that will affect any resumption of air traffic in Europe. Because of this and our main concern primarily relates to safety and prevention,” said Spanish Minister of Transport Jose Blanco, whose country holds the rotating presidency EU. International Air Transport Association (IATA) called before the meeting to take steps to restore air traffic severely impaired due to volcanic ash cloud, which closed a number of European airports. Some European airlines have already condemned European governments on how they have reacted to the effects of volcanoes in Iceland. In Germany, the airspace above and which remains closed today, airlines do not hide their dissatisfaction and concern about losses. The two companies – Lufthansa and Air Berlin, insist on mitigation of restrictions on air traffic. “We want policy makers and responsible authorities to evaluate the situation to be put back into traffic and minimize losses for Germany’s economy “said spokesman airline Air Berlin Hans Christoph Noak said on Radio correspondent in Berlin.
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Stocks in Asia-Pacific region fell early on Monday, repeating the movement of securities that are listed on U.S. stock markets, after it became clear that against the investment bank Goldman Sachs are picked up by charges speculation. Prices of commodity markets also took down. The leading index MSCI Asia Pacific region decreased by 2% to 125.73 points in Tokyo, which is the strongest decline since Feb. 19. Index Futures S & P 500 reported and Euro Stoxx 50 Index fell 0.4 percent. China’s Shanghai Composite Index collapsed 3.7%. Oil fell 1.6 percent while the price of copper is also reported decreases. We recall that on Friday the shares of Goldman Sachs fell 13 percent after the Commission for control trade in financial instruments (SEC) accused the most profitable company in the history of Wall Street, that knowingly made some errors in assessing the risk of most subprime mortgages, which are believed to be at the heart of the financial crisis that erupted in late 2007. On the eve of the financial crisis, the Bank has established and launched on the market of financial instruments tied to subprime mortgages, without notifying that investment fund Paulson & Co. has done deals with them and had a significant effect on their price. Thus, investors are harmed by over $ 1 billion.
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The Japanese carmaker Toyota will pay a record fine of 16.4 million dollars, announced Bloomberg, citing a source from the transport ministry in the U.S. as the official report on this will be announced later. The fine was imposed by the regulatory authority of the ministry since, the company has not signaled a time for problems with the throttle, which led to serious incidents. According to laws in the U.S. company that finds problems with the safety of cars offered, must, within 5 days to notify authorities. Toyota e done so only after 4 months. Meanwhile, the company is facing 180 cases of customers and shareholders. Recalled that during the first months of the year, Toyota recall more than 8 million cars that had problems leading to unwanted acceleration. From Bloomberg noted that the fine could reach 13.8 billion dollars and if there was no restriction imposed limit her amount is as high as 2.3 per million vehicles withdrawn provides a fine of 6 thousand dollars.
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The Chaos in air transport which caused the volcanic ash from Iceland, is comparable to the period after September 11, 2001 when terrorists blew up two airliners into towers in New York and the Pentagon building, news agency Reuters. According to Bloomberg agency for the aviation industry losses from unrealized flights could reach $ 1 billion for the week. Will severely hurt the economy of Iceland. Calculations of the International Air Transport Association (IATA) show that air transport lost $ 200 million per day from paralyzed traffic. Besides the loss of revenue, airlines have additional costs because of diversion of passengers waiting in their service and aircraft forced to stay at different airports. According to the Association of European Airlines (AEA) extending volcanic ash all over Europe will cost the aviation industry over 100 million euros ($ 135 million) per day. Blockade at airports affected over 10 million passengers. One day stay costs around 30 million euros per Air France-KLM, a British Airways – 25 million but on Finnair – 2 million. Stopping of the traffic today cause weakening of the shares of airlines in the European markets. U.S. airlines have not yet reported estimates of expected losses from canceled flights to Europe. Only on Saturday, April 17 in Europe have been canceled 17 000 flights and 337 of the planned transatlantic lines, European airlines have managed to make only 55, showed the latest data of IATA. Exact amount of losses from the stay of the aircraft to be calculated, but it is clear that the Icelandic volcano tourism will hit the country more than twice. The ash devastated the island nation’s budget and local government will be forced to seek additional funds for recovery from disaster. Most affected will be tourism, which has 13% share in gross domestic product (GDP) of the country. And given that the GDP of Iceland fell by 6.5 percent last year, while per capita income declined by 20% volcanic ash will cause another severe blow to the country.
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The Germans are outraged that have to pay the debts of Greece. Politicians exploit these feelings without having to bother to explain to people the whole truth, says the publication of the newspaper Suddeutsche Zeitung, quoted by Radio Deutsche Welle. Reality has little to do with clichés. Worse is that the Germany government totally failed in its mission to inform and calm just Germans the truth about what is highly indebted to Greece for the common currency, responsibility and interests of Germany. Silence continued so long that finally Luxembourg Prime Minister Juncker seemed forced to take over the role of educator.
No money – no jobbery
In an interview on the radio Juncker said what chancellor Merkel suppressed. He explained that no European taxpayer and at least Germany should be afraid for their money. In the event that Athens asked for money, she will get a loan, which will be quite normal to pay interest. Germany Government may even benefit from such a loan, since it would take the money market at much more favorable conditions than those under which they grant to the Greeks. And not only Germans could allocate money to Athens. No, we should help all countries in the euro area, the burden will be distributed in accordance with a special key.
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The largest commercial bank in the U.S. – Bank of America returned to profit after three consecutive quarters of red territory since it acquired investment bank Merrill Lynch has realized good results and allocation provisions for bad loans fell. The positive financial result for the first quarter amounted to 3.18 billion dollars or 28 cents a share before distribution of dividends. A year ago when it was last quarter in which Bank of America reports profits she had amounted to 4.25 billion dollars. The results were better than analysts’ expectations, notes Bloomberg. Yesterday, shares of the bank closed at a level of 19.48 dollars or more than 6 times the level in March 2009 when it was imminent danger of nationalization of the financial institution. Several days ago the biggest competitor of the U.S. bank JP Morgan Chase announced yet another quarter, which ends with profit.
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Over the years, when crude oil is running low and options for using alternative energy sources are completely developed, we must think about economic development cost. The scientists from Bedrock Energy Development Denver are using one a little bit old, but useful style for searching of new sources of crude oil and natural gas. They use oil drilling rig changed the cable tool in 1940 and for long time was developed to reach the modern way. The tool is quite cheap and very effective, which makes it absolute leader in oil drilling. The scientists are developing ways to find crude oil and natural gas, but even their actions are not enough for the economy, if an alternative fuel is not found. The economy is consuming large amount of energy and the cheapest fuel will soon be finished. The developers and scientists have less than 50 years according to latest predictions, to find the stable, high efficiency and cheap deputy of crude oil and the natural gas.
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