Rus News Journal

Profits and losses

Corporation MCI incurs losses and the operator of telecommunication corporation MCI reduces the staff

Second-large in the USA (were WorldCom) declared losses for 1 - j quarter and plans of reduction of 7,5 thousand workplaces (in addition to 4,5 thousand workplaces which reduction it has already been declared in March). Losses have made $388 million against profit at a rate of $52 million in 1 - m quarter 2003. Company incomes were reduced to 12,9 % and have made $6,3 mlrd against $7,23 mlrd in 2003. Thus, according to MCI, incomes of rendering of services to corporate clients have decreased on 13 %, and incomes in a consumer sector - on 37 %. The reason of deterioration of indicators the company names competition growth in the market of telecommunications. Reduction of 12 thousand persons should, by management calculations, provide economy to $600 million a year.

Toyota the Japanese corporation of Toyota Motor last week has got record annual profit
the Second-large motor-car manufacturer in the world declared that following the results of the fiscal year which has come to the end in March its net profit has grown on 55 % and has made ¥ 1,16 trln ($10,22 mlrd) that twice exceeds profit of General Motors and Ford Motor of together taken. Thus, Toyota Motor became the first in the history of the Japanese company which annual profit has exceeded $10 billion company Sales volume has grown on 12 %, to ¥ 17,3 trln ($152 mlrd). For a year of Toyota has sold worldwide 6,7 million cars that almost on 10 % above previous year indicators when it has been sold 6,1 million cars. In the North America, in many respects thanks to popularity of models of Lexus and Corolla, it has been sold 2,1 million cars that on 121 thousand more than last year. In Europe it has been sold 898 thousand cars. In the European market from Toyota models are most popular sedan Yaris and Corolla.

Shots
New head Infineon will raise profitableness of the company
German company Infineon Technologies, the seventh on size in the world the manufacturer of semiconductors, declared appointment as Wolfgang Zibarta`s general director which will hold this post on September, 1st. To its introduction into a post the management of the company will be carried out by chairman of board of directors Infineon Max Dietrich Klej. Former head Infineon Technologies Ulrih Schumacher has resigned in March of this year from - for disagreements with board of directors concerning company strategy. 54 - summer Wolfgang Zibart worked earlier in such large German corporations, as the manufacturer of tyres Continental AG and BMW. It is expected that it can deduce Infineon on new level of profitableness. The company has started to get profit only 9 months ago after 2,5 years of recession in branch. In 1 - m quarter of this year net profit Infineon has made 39 million, sales volume - 1,61 billion

Lonza the Swiss chemical company Lonza has found the new general director
past Friday declared appointment to the post of general director Shtefana Borgasa, the former representative of a management of the German competitor - companies BASF. It will hold a new post on June, 1st. Company Lonza making products of thin chemistry, has hard financial times. Its previous head Markus Gemjund has left the company in January when it became known about falling of annual profit Lonza on 59 %. It is expected that mister Borgas until recently heading North American division BASF and having experience of carrying out of re-structuring, can reduce costs Lonza and adjust relations with the investors, spoilt by the previous general director.

the Declaration on intentions
Sumitomo Chemical and Saudi Aramco Leading Japanese petrochemical both pharmaceutical company Sumitomo Chemical and the Saudi state oil company Saudi Aramco will construct NPZ
have signed the agreement on joint building of an oil refining and petrochemical complex in Saudi Arabia. Project cost makes $4,3 billion Factory will be constructed near the city of Rabig, at coast of Red sea. It will be started in the end of 2008 and can make 1,3 million tons etilena and 900 thousand tons of propylene year, and also 80 thousand barrels of gasoline in day that will make its one of the world`s largest integrated complexes such. Already existing factory of company Saudi Aramco processing 400 thousand of barrels of oil in day will be included in a new complex.

the British companies have signed contracts with China
Within the limits of official visit to London the prime minister of state council of the Peoples Republic of China Ven Tszjabao a number of the British companies have concluded past Tuesday some agreements with China for a total sum over $1,5 billion Oil company British Petroleum has signed some contracts for a total sum in $1 mlrd, in particular, about building of new petrochemical factory in Nanking (productivity of 500 thousand tons of acetic acid in a year) and expansion of already existing factory BP in the city of Chzhuhaj, in river Chzhutszjan delta. BP also has concluded the contract on building and management of 500 gasoline stations in provinces Chekiang and Guangdong through joint ventures BP Sinopec Zhejiang Petroleum and BP PetroChina Petroleum.
Company Shell has concluded the three-year contract with China Petroleum and Chemical Corp. (Sinopec) for the $200 million sum on building 500 gas stations in the east of China. And the trading company Kingfisher specialising on the goods for the house and building, has signed the agreement on partnership with Midea Group for the $75 million sum in which frameworks this Chinese manufacturer will deliver in chain store system Kingfisher operating in the Peoples Republic of China electric devices, first of all conditioners and fans.

transactions
Citigroup are bought by division Principal Financial
the World`s largest financial company Citigroup has informed on forthcoming purchase of mortgage division of company Principal Financial Group - Principal Residential Mortgage. Transaction cost makes $1,26 mlrd, it will be finished by the end of September after approval by regulating bodies. Principal Residential Mortgage - one of the largest companies in the mortgage market of the USA, its actives make about $6,9 billion On termination of the transaction it becomes part CitiMortgage, and its profit will be included in financial reporting Citigroup following the results of 2004. Thanks to sale of not profile actives Principal Financial Group intends to find the big financial flexibility and stabler incomes.

Siemens has bought U. S. Filter Corporation
German engineering group Siemens declared purchase for $993 million company of water supply U largest in the North America. S. Filter Corporation at French Veolia Environnement. It is expected that the transaction will be finished by the end of September. U. S. Filter Corporation - the leading supplier of the equipment and services in water treating. The annual sales volume of the company in which 5800 persons work, makes $1,2 billion Thanks to this transaction Veolia will get rid of business which she has inherited from the former parental company Vivendi and from - for which it had to lower cost of the actives on some billions euro. And Siemens, having actives of the company of water supply largest in the North America, can make a worthy competition to the main contender, corporation General Electric, in the water supply world market.
ALENA - MIKLASHEVSKY