China propels BMW to strong profits, Germany lags

China propels BMW to strong profits, Germany lags
A BMW Vision Next car is seen during the 19th Shanghai International Automobile Industry Exhibition in Shanghai. (AFP)
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Updated 08 May 2021

China propels BMW to strong profits, Germany lags

China propels BMW to strong profits, Germany lags
  • BMW net profit rose to €2.83 billion ($3.42 billion) from €574 million in the year-earlier period

FRANKFURT: Booming sales in China helped propel German luxury carmaker BMW to stronger profits in the first three months of the year even as its home market Germany trailed the ongoing recovery in global car markets from the worst of the pandemic shutdowns.
BMW said that its sales in China nearly doubled in the quarter to 230,120 vehicles, partly reflecting the shutdowns in early 2020 as China was hit first by the pandemic. Sales in the overall Asia region however exceeded even pre-pandemic levels.
Sales were up by double-digit percentages in most of Europe and in the US. An exception was the company’s home market in Germany, where sales dropped 5 percent. The earnings underscored the German auto industry’s strong connections with China; competitor Volkswagen said Wednesday that it recorded a 61 percent increase in first-quarter unit sales there, helping it sharply increase profits.
The company said higher sales volume across key global markets as they rebound from the pandemic recession was accompanied by improved prices. Earnings were also supported by better used car prices in the US, which increases revenues from the sales of cars that have been leased to customers.

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BMW revenues rose 15 percent to €26.78 billion.

BMW CEO Oliver Zipse said that the quarter showed “our business model is a successful one, even in times of crisis.” He said the company’s focus is on developing digitally connected, electric cars. The company more than doubled its sales of battery and electric vehicles in the quarter over the year earlier, to 70,200.
Zipse said that the fall in sales in Germany was less than that for the total market, meaning market share had increased, and said that sales in April, the first month of the new quarter, had been “significantly better.”
BMW net profit rose to €2.83 billion ($3.42 billion) from €574 million in the year-earlier period. Revenues rose 15 percent to €26.78 billion. Per-vehicle profitability, defined as operating result on sales, reached 9.8 percent, a big increase from 1.3 percent in the year-earlier quarter and within the company’s long-term target range.
Chief Financial Officer Nicolas Peter said that the company had not lost any production due to the shortage of semiconductors — the silicon chips that enable many of the electronic functions in today’s vehicles — that has affected the auto industry worldwide.

 


Saudi National Development Fund targets infrastructure projects

Saudi National Development Fund targets infrastructure projects
Updated 15 June 2021

Saudi National Development Fund targets infrastructure projects

Saudi National Development Fund targets infrastructure projects
  • The capital of the new fund could "reach several billion royals"

RIYADH: The Saudi National Development Fund is preparing to launch a new fund targeting infrastructure projects in the Kingdom.
The capital of the new fund could "reach several billion royals", Asharq Business reported, citing unidentified sources.
Muhammad bin Mazyad Al-Tuwaijri, deputy chairman of the National Development Fund said in February that the Kingdom had started to work  on the launch of an infrastructure fund.
Saudi Arabia launched an ambitious SR12 trillion ($3.2 trillion) program in March to boost the role of the private sector in diversifying the economy.
Under the 'Shareek program', private sector businesses will be helped to invest SR5 trillion between now and 2030, along with SR3 trillion from the country's sovereign wealth fund, the Public Investment Fund (PIF), and SR4 trillion as part of a new national investment strategy.

 


Omani Octal said to weigh $800m majority stake sale

Omani Octal said to weigh $800m majority stake sale
Updated 15 June 2021

Omani Octal said to weigh $800m majority stake sale

Omani Octal said to weigh $800m majority stake sale
  • A sale could value Octal at about $800 million

RIYADH: Octal, an Omani plastics packaging manufacturer, is considering a majority stake sale, Bloomberg reported citing people familiar with the matter.
A sale could value Octal at about $800 million, one of the people said. The company is working with JPMorgan Chase & Co., the people said, asking not to be identified for information confidentiality.  
The Muscat-based company has already attracted strategic suitors in Asia and the US, they said.
Octal was founded in 2006 and produces plastic used to package food and consumer products. The company is present in Oman, Saudi Arabia and the US and ships its products to more than 75 countries, according to its website.
The potential sale would add to the $96 billion of deals targeting companies in the Middle East and Africa this year, according to data compiled by Bloomberg.


Egypt clothing exports hit by surging shipping costs

Egypt clothing exports hit by surging shipping costs
Updated 15 June 2021

Egypt clothing exports hit by surging shipping costs

Egypt clothing exports hit by surging shipping costs
  • Rising container costs are affecting both their imports of raw material as well as their export of finished garments according to Mohamed Kassem

RIYADH: Egyptian clothing manufacturers are being hammered by surging shipping costs.

Rising container costs are affecting both their imports of raw material as well as their export of finished garments according to Mohamed Kassem, a member of the Egyptian Exporters Association.

Fabrics from China account for most of the country’s clothing exports, he told Al Arabiya.
The cost of shipping a 40-feet container from Shanghai to an Egyptian port has rocketed to as much as $14,000 compared to $2,500 before the pandemic, he said.
That has led to increased competitive pressures for Egyptian textiles exporters from rivals in Asia.
He called on the state to intervene to help support the industry.


Indian shares close at record highs as pandemic curbs ease, cases fall

Indian shares close at record highs as pandemic curbs ease, cases fall
Updated 15 June 2021

Indian shares close at record highs as pandemic curbs ease, cases fall

Indian shares close at record highs as pandemic curbs ease, cases fall
  • Many Indian states eased coronavirus restrictions on Monday, including the national capital New Delhi, where authorities allowed shops and malls to open as the number of new cases dropped to the lowest in more than two months

BENGALURU: ndian shares ended at record highs on Tuesday, as declining COVID-19 infections prompted many states to re-open businesses, with a rally in broader markets also helping the sentiment.
The blue-chip NSE Nifty 50 index rose 0.36 percent to 15,869.25 and the benchmark S&P BSE Sensex climbed 0.42 percent to 52,773.05 at close.
Many Indian states eased coronavirus restrictions on Monday, including the national capital New Delhi, where authorities allowed shops and malls to open as the number of new cases dropped to the lowest in more than two months.
India on Tuesday reported 60,471 new infections, the lowest since March 31.
The sentiment also tracked global stocks that hit a record high, as investors bet likely “transitory” inflation pressures will restrain the US Federal Reserve from signalling a shift in policy settings.
Many investors expect the Fed to maintain its dovish stance at its two-day meeting starting on Tuesday. Some board members, however, have said the central bank should start discussing tapering its bond buying.
In Mumbai trading, financial stocks provided a boost to the Nifty 50, with ICICI Bank and HDFC Bank ending 1.6 percent and 0.7 percent higher, respectively.
The Nifty Bank Index and the Nifty Private Bank Index, which have so far gained more than 0.55 percent this week, were among the top performers across sub-indexes rising between 0.85 percent and 1.07 percent.
Software services firm Infosys rose 0.8 percent, lifting the Nifty IT index by 0.23 percent.
Shares of Future Retail closed 10 percent higher, after staying at those levels since early trade.


Abu Dhabi’s Eagle Hills ready to open biggest water park in Jordan

Abu Dhabi’s Eagle Hills ready to open biggest water park in Jordan
Updated 15 June 2021

Abu Dhabi’s Eagle Hills ready to open biggest water park in Jordan

Abu Dhabi’s Eagle Hills ready to open biggest water park in Jordan
  • It will open on July 3
  • The park was developed by Abu Dhabi-headquartered Eagle Hills, one of the largest developers in Jordan

DUBAI: The Saraya Aqaba Waterpark – billed as the biggest in Jordan – is opening its doors on July 3.
Located in the country’s only coastal city, Aqaba, the park spans an area of more than 28,500 square meters. It has rides, slides, as well as food and beverage stalls.
“At Saraya Aqaba Waterpark, guests from all around the world are in for an aquatic adventure like no other with slides, rides and experiences suitable for guests of all ages,” Chris Van Der Merwe, its general manager said in a statement.
The park was developed by Abu Dhabi-headquartered Eagle Hills, one of the largest developers in Jordan, and is operated by Abu Dhabi-based Farah Experience, which also handles Ferrari World Abu Dhabi.
Theme parks and other physical attractions have taken a hit when the pandemic forced countries to restrict people’s mobility, however some are now welcoming guests again as attractions make a gradual return.