A round-up of today's other business news, in brief
Glanbia joint venture update
Nutricima, a Nigerian joint venture between Irish dairy and ingredients company Glanbia and consumer products group PZ Cussons, is expected to be profitable in the second half of its financial year, with the construction of a second plant reported to be on schedule, according to a trading update released yesterday by PZ Cussons.
Rapid decline in Japan's GDP
Japan's gross domestic product (GDP) contracted much more rapidly in the third quarter than previously thought, official data showed yesterday amid new indications of distress in the world's second-biggest economy.
The revised GDP data showed a quarter-on-quarter fall of 0.5 per cent for the three months to September, compared with last month's preliminary estimate of a 0.1 per cent decline.
The economy contracted at an annualised rate of 1.8 per cent between July and September - a much more precipitous pace than the annualised 0.5 per cent decline suffered by the US.
Analysts said the revision, though bigger than expected, reflected technical factors involving inventories and government spending rather than worrying new information and so would not dramatically change assessments of the economy's prospects. - (Financial Times service)
France's record trade deficit
France's trade deficit swelled to record levels in October as demand for its exports such as cars and steel- based products fell in its core European markets.
The deficit ballooned to €7.066 billion against a revised €5.961 billion in September, confounding expectations for a €5.65 billion shortfall.
"These are terrible, terrible figures," said Alexander Law, chief economist at Xerfi. - (Reuters)
€100,000 profit for wine seller
Wine merchants Berry Bros Rudd Ireland had profits of almost €100,000 in the 12 months to the end of March last.
Accounts filed with the Companies Registration Office show that the company had sales of €5.1 million during the period, up from €4.3 million.
It had profits of €99,633, which in turn helped ease the company's accumulated losses at the end of the year to just over €1.6 million.
At the year's end, the company owed almost €2.9 million to its British parent and main supplier, Berry Bros Rudd.
Demand for oil to 'collapse' in 2009
Global oil demand will collapse next year and commodities will not return to the highs they reached this summer in the foreseeable future, two authoritative reports said yesterday as they forecast a long and painful worldwide recession.
The stark conclusions came as the World Bank's chief economist predicted that the world faced "the worst recession since the Great Depression".
The US energy department said global oil demand would fall this year and next, marking the first two consecutive years' decline in 30 years.
"The increasing likelihood of a prolonged global economic downturn continues to dominate market perceptions, putting downward pressure on oil prices," it said, forecasting that demand would drop by 50,000 barrels a day this year and by a hefty 450,000 barrels a day in 2009. - (Financial Times service)
Stalled building projects to hit pipemaker Wavin's profits
Stalled building projects will knock profits at Wavin, Europe's biggest maker of plastic pipes for sewers, the company said yesterday.
Full-year profit before some items will fall by about 25 per cent, as the credit crisis stalls building projects in Europe, the Dutch company, which has a plant in Balbriggan, Co Dublin, said yesterday in a statement.
Earnings before interest, taxes, depreciation and amortisation will drop to "just below" €160 million as sales will slide by about 2 per cent.
"We're sailing through the perfect storm," Wavin chief executive Philip Houben said. "I've only got one description for the current market conditions: severe."
This month, Mr Houben will close "a great many" of Wavin's plants "one or two weeks" earlier for the Christmas holiday than in previous years to lower production as building materials and construction companies order fewer products.
Cutting 10 per cent of his workforce in western Europe would lead to annual savings of €22 million, Mr Houben said.
He said he aimed to further reduce costs by as much as €15 million. - (Bloomberg)
