Japan is a lot more open to acquiring firms in India than China
By Harini Subramani, Mint, New Delhi
Feb. 21--In his first trip to India as the representative director and president of Ernst and Young Transaction Advisory Services Co. Ltd in Japan, Kenneth G. Smith highlights the increasing focus of Japanese companies on emerging economies including India.
In an interview, Smith said Japanese companies are now exploring acquisition opportunities in the rest of Asia and seem more open to investments in India than China. Smith is in the country for internal meetings and to discuss hiring for the increasing transaction activity between India and Japan. Edited excerpts:
Japanese companies have turned acquisitive, especially in the last five years. How did this evolve?
This is the second wave. The first wave was in the mid-to-late 1980s when Japan faced its initial bubble, primarily fuelled by increasing land prices, which had led to overseas investment primarily in real estate and also banking. What's happening now is that there is a strong yen. There are other things happening at the same time. There is a decreasing and an ageing population, a hollowing out of the manufacturing base.
While Japanese multinationals like Toyota, Hitachi and NEC expanded even during the relatively slow years, the mid-tier companies are joining the fray and going overseas. With the strong yen, everything is 20-30% cheaper than it used to be 18 months ago.
How do you classify the mid-size companies?
So, there is no real cut-off and it depends on the industry. In the 1990s, less than 40% of the Japanese companies' revenue came from outside Japan, with some anomalies. Now, around 50-60% revenue is from the overseas markets. For some companies it's closer to 80-90%. So that's the shift. Automotive guys expanded earlier. Food and beverage companies like Kirin, Asahi and Sapporo, the three large (domestic) beer companies, had gone overseas. But there is a size below that, between say $500 million and above $1 billion in terms of turnover. These guys (beer manufacturers) were (earlier) okay serving in Japan alone. But with the ageing population and with what consumers want, they are looking for greener pastures overseas.
Which sectors are seeing consolidation in Japan?
Read More»Savannah Morning News, Ga., Adam Van Brimmer column
By Adam Van Brimmer, Savannah Morning News, Ga.
Feb. 20--Republicans will congregate this afternoon to quietly toast what they believe is the last Presidents Day with Barack Obama holding the office.
Those imbibing in something other than spiked Kool-Aid will no doubt ponder an all-too-familiar presidential primary conundrum: Heart versus head.
When voters go to the polls on Super Tuesday, March 6, the ballot will list the candidates' names. But for many, the choice will be between voting for the man they believe has the best chance to defeat Obama in November or for the man who best personifies their ideals.
The problem is not specific to the Republicans. Presidential elections are often decided by American voters who consider themselves either Independents or party moderates -- the so-called "swing voters" -- not by the loud-and-proud conservatives and liberals.
The Independent ranks range in size from 20 percent of registered voters to 40 percent, depending on the survey. So the wisdom of picking a nominee who appeals to those less interested in ideology than Sheen-ology ("Winning"), especially in a race against an incumbent, is sound.
Yet choosing pragmatism over principles seems as difficult for Republicans as shopping at the outlets versus the mall is for a budget-conscious fashionista.
"A lot of Republicans feel they'd be better off in November with Mitt Romney as the nominee, but they're not ready to fall in line behind him and are holding out for a conservative champion," said Kerwin Swint, a political science professor at Kennesaw State University. "It's a real oddity. I struggle to remember the last time a major party was running this far away from its frontrunner."
Election or referendum?
The current Romney vs. "conservative champion" contest puts the GOPs in an overripe pickle.
The party base seems reluctant to shake Romney's hand, let alone embrace him.
They make the label "Massachusetts Moderate" sound like a mama insult.
They make fun of his pressed blue jeans.
So will the party loyalists hold their noses and vote along party lines if Romney is the nominee?
Or will they stay in bed come Nov. 6, blankets pulled over their heads, effectively negating the votes gained in nominating a candidate more palatable with the Independents and swing voters?
Read More»GM posts its highest profit ever: $7.6 billion
By TOM KRISHER
DETROIT - Just two years after it was rescued and reconstituted through bankruptcy and a government bailout, General Motors Co. cruised through 2011 to post the biggest profit in its history.
The 103-year-old company, leaner and smarter under new management, cut costs by taking advantage of its size around the globe. And its new products boosted sales so much that it has reclaimed the title of world's biggest automaker from Toyota.
GM may have a hard time breaking this record in 2012 because it is losing money in Europe and South America, and U.S. sales growth slowed in the last three months of 2011.
But the company's performance in North America and Asia still helped it earn $7.6 billion for the year, beating the record of $6.7 billion set during the truck boom in 1997.
The profit won't stop the debate about spending $49.5 billion in taxpayer dollars to save GM. But it did drive up the company's stock price, which could help the government get more of its money back.
The bailout of GM and Chrysler Group LLC, begun by George W. Bush and finished by Barack Obama, remains a major issue in this year's presidential campaign. It's so politically charged that even a Super Bowl ad celebrating Chrysler's rebirth caused arguments.
GM, which released its earnings Thursday, performed best in its home territory, posting a $7.2 billion pretax profit in North America. The numbers were so good that 47,500 blue-collar workers will get $7,000 profit-sharing checks, the maximum allowable under their new union contract. International Operations, which includes Asia, made $1.9 billion before taxes, but that was down from 2010.
GM's cost cuts, and its outlook for this year helped to push up the stock price by almost 9 percent to $27.08. The company said it trimmed costs by $500 million in the fourth quarter alone mainly by consolidating advertising agencies and engineering operations. A prediction that costs wouldn't rise this year wowed investors, especially since other automakers have forecast rising costs, said Itay Michaeli, an analyst for Citi Investment Research.
"That was a very pleasant surprise," he said.
GM also was optimistic about sales and revenue. It sees its global market share holding steady at 11.9 percent, and if global auto sales rise as expected this year, GM's slice of that would also increase.
Read More»GM records its highest profit ever: $7.6 billion
By TOM KRISHER
DETROIT - General Motors earned its largest profit ever in 2011, two years after it nearly collapsed.
Strong sales in the U.S. and China helped the carmaker turn a profit of $7.6 billion, beating its old record of $6.7 billion in 1997 during the pickup and SUV boom.
GM is a vastly different company than it was back then. It's smaller, has less debt and its contract with the United Auto Workers is less costly. But it took a $49.5 billion government bailout and bankruptcy protection in 2009 to cut its bloated costs. The company earned huge a profit even though U.S. sales of cars and trucks were near an historic low of 12.8 million.
In 2012, GM expects to increase its revenue as global sales grow and it charges more for models.
Its ongoing effort to cut costs and take advantage of its global presence are also paying off. In the fourth quarter, costs fell by $500 million. It saved $100 million by cutting some of the dozens of advertising agencies and media managers it uses. It also saved $100 million by centralizing engineering.
"We will build on these results as we bring more new cars, crossovers and trucks to market," CEO Daniel Akerson said.
GM's stock price rose $1.70, or 4 percent, to $26.01 in early afternoon trading.
That's good news for the U.S. government, which still owns 26.5 percent of the company and needs the stock price to rise significantly before it can recoup all the bailout money. The bailout and GM's performance already are contentious issues in this year's presidential campaign.
Still, problems emerged for GM late last year. Its fourth-quarter profit fell 8 percent and missed Wall Street expectations. Europe and South America reported losses. And sales growth in the U.S. slowed even as more Americans bought cars and trucks.
This year, GM expects to make less money per vehicle as the mix of sales shifts to cars from trucks, which have bigger sticker prices
Still, last year was a big success for the company.
Revenue rose 11 percent to $150 billion. Its per-share profit was $4.58. GM made the bulk of its income in North America, where its pretax profit totaled $7.2 billion. International Operations, which includes Asia, made $1.9 billion before taxes, but that was down.
Read More»NK Auto plans overhaul
By Santan Santivimolnat, Bangkok Post, Thailand
Feb. 15--NK Auto Group, a leading dealer of pre-owned Mercedes-Benz and an independent importer of the marque, has restructured its organisation and automobile business to raise brand awareness.
NK Auto Import was recently established to handle new Mercedes-Benz imports, while newly established NK Auto Service is responsible for car servicing.
NK Car Plaza, the existing company started in 1968, remains responsible for sales of used Mercedes-Benz.
The group plans to invest over 200 million baht this year.
It wants to launch new Mercedes-Benz models, as well as marketing campaigns at department stores, community malls and motoring events.
Another goal is renovation of its showroom and service centre on Kanchanaphisek Road in Bangkok, building one of the country's largest one-stop Mercedes-Benz facilities.
Renovation will start in May and be completed by year-end, said Pitinun Krisadatanont, the group's managing director.
"There will be a search engine directory for Mercedes-Benz models and a car catwalk display using 3D-mapping technology," said Mr Pitinun.
The service centre is being constructed and is 40% complete.
It will be equipped with state-of-the-art tools to guarantee the quality of all new and used Mercedes-Benz.
Mr Pitinun said the group sold 654 Mercedes-Benz in 2011, a 5% increase year-on-year.
Of the total, 261 units were used cars, down 40% from 2010, while 393 units were new cars, more than double 2010's total.
C- and E-classes were brisk-selling models last year.
The group aims for sales of 700 units this year, up by 7% from 2011, with 60% going to new car imports.
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(c)2012 the Bangkok Post (Bangkok, Thailand)
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Read More»UPI NewsTrack Business
U.S. markets post small gains NEW YORK, Feb. 8 (UPI) -- U.S. stock gains were muted Wednesday as investors focused on negotiations in Greece.
Greece kept up negotiations on several fronts in an attempt to piece together financial reform measures to qualify for a new round of international aid.
Some analysts say the deadline for full compliance with international mandates is soon, given a bailout needs to be in Greece's procession by March 20 or the country could go into default.
By close of trading Wednesday, the Dow Jones industrial average added 5.75 points -- 0.04 percent -- to 12,833.95. The Standard and Poor's 500 index gained 2.91 points, 0.22 percent, to 1,349.96. The tech-heavy Nasdaq composite index tacked on 11.78 points, 0.41 percent, to 2,915.86.
On the New York Stock Exchange, 1,763 stocks advanced and 1,284 declined on a volume of 3.9 billion shares traded.
The 10-year treasury note rose 1/32 to yield 1.984 percent.
The euro fell to $1.3258 from Tuesday's $1.3261. Against the yen, the dollar rose to 77.04 from Tuesday's 76.77 yen.
In Tokyo, the Nikkei 225 index gained 1.1 percent, 98.07 points, and reached 9,015.59.
In London, the FTSE 100 index shed 0.24 percent, 14.33, to 5,875.93.
More small firms indicate hiring plans PRINCETON, N.J., Feb. 8 (UPI) -- U.S. small business owners are expressing more optimism about hiring than they have since January 2008, a Gallup poll indicates.
In a survey conducted Jan. 9-13, 22 percent of small business owners said they were likely to take on new employees this year, while 8 percent indicated they were unlikely to do so, Gallup said Wednesday.
The 14 percentage-point advantage for expected job growth is the most positive differential in slightly more than four years, the polling company said.
The survey, which is taken quarterly, includes responses from 600 small business owners.
The plus 14 "hiring-intentions advantage" is a sharp increase over the plus 2-point differential in October and a plus 4-point differential in July, Gallup said.
On Tuesday, the Labor Department said the number of U.S. job openings had risen to the highest figure in three years, with 3.4 million job listings available at the end of December.
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