International News 15/07
-
Uniqlo Owner Posts 31% Profit Surge in the Third Quarter of 2024
Japanese retailer Fast Retailing, the parent company of Uniqlo, has announced a 31% increase in third-quarter operating profit, driven by robust sales performance in Japan. The company's profit increased to 144.7 billion yen (equivalent to US$894.81 million) over the three-month period ending 31 May, representing a rise from the 112.5 billion yen figure recorded in the same period last year. This exceeded the consensus forecast of 127.1 billion yen. Furthermore, Fast Retailing has increased its full-year profit forecast to 475 billion yen, up from 450 billion yen. The company's success can be attributed to its affordable basics and the weakening of the yen, which has boosted overseas sales. Fast Retailing plans to pursue aggressive growth in China, North America, and Europe, capitalising on the consumer shift towards value over luxury. However, despite the company's presence in over 900 stores in mainland China, its operations in the country saw a decline in revenue and profit. This was partly due to strong performance in the previous year and a general decline in consumer interest.
Positive Sentiment, US Wholesale Inventories Increase in May 2024
The latest figures show a solid increase in wholesale inventories in the US in May 2024, which is expected to support economic growth in the second quarter. The Commerce Department's Census Bureau has announced that wholesale inventories increased by 0.6% in May, in line with the previous estimate. This follows a 0.2% rise in April. Analysts anticipate that the figures will remain unchanged and that there will be a 0.5% annualised decline in inventories in May. The careful management of stocks by businesses and strong domestic demand have resulted in private inventory investment exerting a drag on GDP for two consecutive quarters. However, there is a cautious optimism that inventory accumulation could help offset the impact of the widening trade deficit on GDP. The second quarter is forecast to see growth of around 2%, up from the 1.4% growth seen in the first quarter. Wholesale motor vehicle inventories saw a 1.4% increase in May, while excluding automobiles, wholesale inventories increased by 0.5%.
BP Plc Projected Second Quarter Profit to Decline
BP anticipates a decline in profitability for its refining and trading operations during the second quarter of 2024. This is due to a decline in the profit margin of the refining business, which is estimated to be between US$500 million and US$700 million. The costs for BP in the second quarter reached a total of between US$1 billion and US$2 billion, including the review of the Gelsenkirchen refinery in Germany. While BP will formally release its quarterly performance results on 30 July 2024, the company anticipates that upstream production in the second quarter will remain consistent with the previous three months. In the first quarter, BP achieved oil and gas production of 2.38 million barrels of oil equivalent per day (boepd) from its operations in Azerbaijan and the United States. Analysts anticipate that BP's profit for the second quarter will be approximately US$3.13 billion. Furthermore, Shell has recently reported a decline in operating costs by US$2 billion, due to delays in the sale of its refinery in Singapore and the construction of a biofuel plant in the Netherlands.
https://internasional.kontan.co.id/news/bp-plc-proyeksi-laba-kuartal-ii-akan-menurun