HTC posts biggest ever quarterly loss

TAIPEI: Taiwan’s struggling smartphone maker HTC suffered its biggest ever quarterly loss in the three months to June, as sales of its high-end products plunged, it announced on Thursday.

The firm swung to a loss of Tw$8.0 billion ($253.2 million) in the second quarter from a net profit of $2.26 billion in the same period of 2014.

It is also a nosedive from the first quarter of this year, when HTC reported a net profit of Tw$360 million.

Revenues slid to Tw$33.0 billion.

The deficit was triggered by “weaker than expected demand at the high end... along with weak sales in China”, the company said in a statement.

It said the outlook was dim for the third quarter with revenues forecast to fall to between Tw$19 billion and Tw$22 billion.

HTC share prices have shed more than 50 per cent this year, closing at Tw$70.0 Thursday.—AFP

Adidas reports higher sales, modest profit rise

BERLIN: German sportswear and equipment maker Adidas on Thursday reported higher sales and a slight profit rise for the second quarter, despite falling revenues in its golf division.

Net profit in the April through June period was up 1.4 per cent compared to the second quarter last year to 146 million euros ($159m), the company said, in line with expectations.

Overall sales, driven by the Adidas and Reebok brands, rose 15pc to 3.91 billion euros.

The Bavarian company is working on a new strategy to catch up with Nike, including by boosting digital products.

Adidas is also working on a concept to make sneakers, and later apparel, directly in the store, from measurements taken from customers, business newspaper Handelsblatt reported on Thursday.—AFP

Rio Tinto half-year net profit falls 82pc

SYDNEY: Mining giant Rio Tinto on Thursday reported a 82 per cent drop in its first-half net profit as a supply glut and slowing demand in key market China sent iron ore prices plunging.

The Anglo-Australian firm, which reports in US dollars, said net profit was $806 million in the six months to June 30 from $4.4 billion in the same period last year.

Its underlying profit, the measure preferred by the company, was down 43pc to $2.9bn.

It cut capital expenditure by $1.4bn for the first half to $2.5bn. Rio declared an interim dividend of 107.5 cents, a 12pc increase from 2014. Its shares closed 1.08pc higher at Aus$53.55 ahead of the results.

Published in Dawn, August 7th, 2015

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