14 BUSINESS h t t p : / / w w w. t e h r a n t i m e s . c o m / e c o n o m y FEBRUARY 4, 2010 TEHRAN TIMES INTERNATIONAL DAILY T Tehran, Moscow talk trade NEWS IN BRIEF Iran boosts Electrolux shares hit by outlook methanol STOCKHOLM (Reuters) — Electrolux, the world’s sec- production capacity Tehran Times Economic Desk ond-biggest home appliances TEHRAN — The chairmen of Iranian and maker, forecast only a mod- Russian chambers of commerce and in- est improvement in demand dustry held talks in Moscow on Monday this year when posting 2009 to expand bilateral trade and regional core profit just below expec- economic cooperation. tations, sinking its shares. Iranian Chamber of Commerce, In- A sluggish global economy dustries and Mines Chairman Moham- has dented sales for appliance makers around the world, mad Nahavandian in his meet with forcing them to slash costs with plant closures and job Russian Chamber of Commerce and In- cuts. But while rivals have been more bullish about de- dustry Chairman Yevgeny Primakov said mand in 2010, Electrolux was cautious on Wednesday. potentials of the two countries in different The Swedish white goods giant said it saw no sign fields, particularly in energy sector, can Tehran Times Economic Desk of a strong recovery in any of its main markets. “To bring them high profits in joint ventures. TEHRAN — The second make a promise about the full year 2010, there is prob- The Russian officials pointed out to methanol production unit at ably no one on the planet who can do that. We still the damages of the global financial crisis Zagros Petrochemical Com- NAHAVANDIAN PRIMAKOV have a economy that is not in shape,” chief executive on the country’s economy and said the plex will officially come on Hans Straberg said. issue has also negatively affected the with Qatar, Iran and Russia have also Minister, Manouchehr Mottaki and Rus- stream by next week, rising Shares in Electrolux, whose brands include AEG- Iran-Russia annual trade. In 2008, the cooperated for many years in exploiting sian Energy Minister, Sergei Shmatko Iran’s annual methanol output Electrolux and Frigidaire, were down 12.7 percent to a trade turnover totaled $3.7 billion. the reserves in the Caspian Sea. signed four cooperation deals at the end to 6.050 tons. four-month low at 157.90 crowns by 1000 GMT. Russia and Iran together represent In addition to their trade and coopera- of the eighth meeting of their joint eco- Zagros Petrochemical Straberg said he saw 2-4 percent market growth in the first and second in the world in natu- tion in hydrocarbons, Iran and Russia nomic commission in Tehran. Company signed a contract North America and a flat year for Europe, its biggest ral gas reserves and second and fourth have also expanded trade ties in many Shmatko also met with Iranian Oil with a consortium comprising appliance market, with a slight recovery in Western Eu- in oil production, which has encouraged non-energy sectors of the economy, in- Minister Masoud Mirkazemi and the Germany’s Lurgi Company rope but further declines in Eastern Europe. the two to pursue economic partnerships cluding a large agriculture agreement in two ministers agreed to establish a and Iran’s Petrochemical In- dustries Design and Engi- involving the refining and export of oil January 2009 and a telecommunications joint investment company in order to Roche full-year net profit down and gas. contract in December 2008. facilitate the cooperation in the en- neering Company (PIDEC) on Genentech buy Beyond the developing “gas troika” In December 2009, Iranian Foreign ergy field. in 2004 to establish the unit, SHANA news agency report- BASEL (Dow Jones) — Ro- ed. The unit is to produce 1.65 Honda profit soars as cost cuts offset lower sales che Holding AG Wednesday re- ported a decline in full-year net million tons of methanol per TOKYO (AP) -– Honda’s quar- The Camry, the top-seller in profit on expenses related to the annum, accounting for 12 per- terly profit soared sixfold on cost the U.S. for the last eight years, takeover of California-based bi- cent of the whole methanol cuts and strong sales of green is among the eight models that otech firm Genentech last year, production of the world. vehicles, boosting the Japanese Toyota has recalled and stopped but said brisk sales of flu drug It started trial operation in automaker’s full year forecast as selling and producing because of Tamiflu and cancer medicines July 2009 and it will be of- the global car market gradually gas-pedal problems. drove revenue higher. ficially inaugurated on the recovers. Honda has also announced Sales of prescription drugs are off to a strong start Ten-Day Dawn (Feb. 1-10) Tokyo-based Honda Motor Co. a fairly large recall of its own, in 2010, the drug maker said, and will probably rise which marks the 31st anni- said Wednesday it booked net covering 646,000 Fit hatchbacks around 5% this year. versary of the Islamic Revo- profit of 134.6 billion yen ($1.49 because of a glitch that could Roche, based in Basel, said net profit attributable lution. billion) for the October-December cause water to enter the power to shareholders fell 13% to 7.78 billion Swiss francs quarter and predicted its first increase in full year profit in window mechanism, causing components to overheat. ($7.36 billion) from CHF8.97 billion, below the CHF8.22 Iran’s wheat two years, underlining a recovery in world auto sales. The recall, announced last week, covers North Ameri- billion expected on average by analysts polled by Dow The results were better than the 74 billion yen ($818 ca, Asia, Latin America, Europe and South Africa. In some Jones Newswires. storage capacity million) profit forecast by analysts surveyed by Thomson countries, the Fit was sold as the Jazz and City. Roche doesn’t publish quarterly earnings. For Reuters. The company raised its profit forecast for the fiscal year the full year, sales rose 8% to CHF49.05 billion from over 6m tons The Japanese automaker, known for the Insight hybrid, through March 2010 for the third time to 265 billion yen CHF45.62 billion. In local currencies, sales increased Accord sedan and Odyssey minivan, reported an 11.5 per- ($2.9 billion), almost double the 137 billion yen profit it at a faster 10% pace, underlining that the Swiss franc’s cent drop in sales for the quarter at 2.24 trillion yen ($24.8 had posted the previous year, and its first annual profit strength last year pressured earnings. billion), partly because of the strong yen. rise in two years. Honda has weathered the auto slump better than some In October, Japan’s No. 2 automaker had raised its profit Wall Street futures of its bigger rivals because of its strength in emerging forecast to 155 billion yen ($1.7 billion), nearly four times its point to higher open markets and its solid motorcycle division. initial outlook, citing sales boosts from government-backed Honda managed to stay in the black for the quarter end- green incentive programs and strong China sales. Stock futures for the Dow ed Dec. 31, 2008, when other Japanese automakers, such On Wednesday, it stuck to its full-year global sales pro- Jones industrial average, the as Toyota Motor Corp., sank into losses. Honda eked out jection of 3.4 million vehicles, down 3.3 percent from 3.5 S&P 500 and the Nasdaq a 20.2 billion yen profit for that period. In months ahead, million for the fiscal year ended March 2009. But it now 100 rose 0.1 to 0.2 percent, Honda could stand to benefit from the woes of Toyota, expects slightly better sales at 8.53 trillion yen ($94.3 bil- pointing to a higher open on Tehran Times Economic Desk which has recalled 4.5 million vehicles globally — more lion), compared to its earlier forecast of 8.45 trillion yen. Wall Street on Wednesday. TEHRAN — Iran will inaugu- than half of them in North America — for problems with ac- For the quarter ended Dec. 31, Honda sold 914,000 Automatic Data Process- rate its biggest ever wheat celerator pedals that can stick, possibly causing crashes. vehicles around the world, down 2.8 percent from 940,000 ing (ADP) released at 1315 silo with the storage capac- Honda is not offering the incentives in the U.S. that vehicles a year earlier, as sales dropped in North America GMT (08:15 A.M. EST) its ity of 120,000 tons, increas- General Motors Co., Hyundai Motor Co. and Ford Motor and Europe, in contrast to strong sales in Japan and other January employment report. ing the nationwide storage Co. are using to woo Toyota owners to buy their cars. But parts of Asia such as China and India. Quarterly sales in Economists in a Reuters survey expect 30,000 were capacity to 6.123 million Honda’s Accord dethroned the Toyota Camry as the best- Japan surged 31 percent to 177,000 vehicles, led by the lost versus a loss of 84,000 jobs in December. The re- tons. selling car in the U.S. for January. Insight and Fit. port could give some clues to the closely watched non- Commerce Minister Mehdi farm payrolls report on Friday. Ghazanfari is to officially put the silo into operation next Toyota’s U.S. sales decline signals ‘uphill battle’ Media giant Time Warner, reporting for the fourth quarter, is expected to comment on advertising sales week, the deputy commerce Toyota Motor Corp.’s U.S. sales slid to a 10-year low in January U.S. sales last month, down from 49.5 percent, Autodata said. and provide details on the state of the recovery from minister Hamid Alikhani told as the company’s worst-ever recall crisis took its most popular The combined market share for GM, Ford and Chrysler LLC the lows of the fourth quarter of 2008. Analysts on av- the Mehr news agency on models off the market and made drivers wary. rose to 45.1 percent from 42.5 percent. erage expect earnings of 52 cents per share, down Wednesday. The decline snapped three months of advances as the com- Toyota’s sales slumped to 98,796 vehicles from 117,287, from 69 cents a year earlier. Presently, the country’s pany couldn’t take advantage of the U.S. auto market’s long- the lowest monthly total for the automaker since January 1999, The world’s biggest drugmaker Pfizer is due to an- largest wheat silo has the ca- est streak of gains since 2006. The Toyota City, Japan-based based on data compiled by Bloomberg. Ford said it outsold nounce fourth-quarter results and give a full-year 2010 pacity of 100,000 tons. carmaker, which has recalled more than 7.6 million vehicles Toyota for the first time since June 2009. profit and revenue forecast. worldwide for defects linked to sudden acceleration, faces U.S. Buyers’ consideration of Toyota vehicles has dropped “dra- The Institute for Supply Management releases its MAJOR CURRENCIES congressional hearings and a rising matically” since last month’s recall, January non-manufacturing index at 1500 GMT (10:00 number of product liability lawsuits. according to Kelley Blue Book, an A.M. EST). Economists in a Reuters survey forecast a To U.S. To IR. “This is going to be a tough, up- automotive pricing and data serv- reading of 51.0 versus 49.8 in December. Currency Dollars Rial hill battle for Toyota,” said Jesse ice. (Source: Reuters) US dollar 1 10,001 Toprak, vice president of industry Toyota suspended U.S. sales of British pound 1.594 15,995 trends at researcher TrueCar.com eight models on Jan. 26 while fix- Mitsubishi UFJ, Shinsei banks Swiss franc 0.947 9,468 in Santa Monica, California. “In the ing the accelerator-pedal flaw, which swing to profit on lower credit costs next few months, it is going to be meant customers couldn’t purchase Swedish krona 0.138 1,383 a challenge for Toyota to convince models such as the Camry sedan TOKYO (Dow Jones) — Two UAE dirham 0.272 2,723 consumers to consider their cars.” and Corolla compact for the last five Japanese banks reported Toyota shares declined as much days of the month. Those were the solid earnings in the latest re- Kuwait dinar 3.476 34,728 as 4 percent in Tokyo trading. The top-selling cars in the U.S. last year. porting period Wednesday, as 100 Japanese yen 1.101 11,058 lower credit costs and a broad company’s U.S. sales last month dropped 16 percent from a “It’s very difficult to quantify the impact on sales,” Bob Carter, Canadian dollar 0.943 9,456 year earlier while Hyundai Motor Co.’s sales rose 24 percent, group vice president for Toyota’s U.S. sales, said in a confer- market recovery underwrote a Australian dollar 0.885 8,850 Nissan Motor Co.’s gained 16 percent, General Motors Co.’s ence call yesterday. The month’s results were 20,000 units, or rebound to profitability. climbed 14 percent and Ford Motor Co.’s advanced 25 percent. 23 percent less than Toyota initially expected, he said. The com- Mitsubishi UFJ Financial Saudi riyal 0.266 2,667 Honda Motor Co.’s sales fell 5 percent. pany hasn’t yet adjusted its sales goal for the year, he said. Group Inc., Japan’s larg- Chinese yuan 0.146 1,466 est banking group by market capital and assets, U.S. industry sales rose 6.3 percent to 698,378 cars and IHS Global Insight forecasts Toyota’s U.S. market share will Euro 1.396 13,957 trucks, equal to an annualized rate of 10.8 million light vehicles, fall to 16.6 percent this year from 17 percent in 2009 and con- returned to the black in the April-December period Sources: cbi.ir & xe.com according to researcher Autodata Corp. That beat the average tinue to decline in 2011, analyst Rebecca Lindland said. from the year before when the financial crisis trig- estimate of 10.5 million by eight analysts surveyed by Bloomb- Before the latest recall, Toyota had already begun to lose cus- gered massive losses due to equity holdings and in- COMMODITIES creased bad loans. erg. tomers to Hyundai, Kia Motors Corp., Honda and Ford, she said. Toyota fell 3.7 percent to 3,470 yen as of the 11 a.m. trading “Smaller companies were already chipping away at Toyota, As well, the midsized Shinsei Bank Ltd. said it en- Light crude $77.06 per bbl. break in Tokyo. The stock has declined 17 percent since Jan. and now I see them having an even more difficult time get- joyed a net profit in the October-December period, also Gold $ 1113.20 per oz. 21, when the company recalled 2.3 million U.S. vehicles for a ting conquest sales from other automakers and attracting new helped by reduced credit costs and by increased rev- Silver $ 16.74 per oz. enue from its consumer finance business. gas-pedal defect linked to unintended acceleration. buyers,” said Lindland, who is based in Lexington, Massachu- Platinum $ 1,575.40 per oz. Mitsubishi UFJ posted a group net profit of Y217.07 The carmaker’s sales drop fueled the first U.S. market- setts. “Trying to convince people driving something else to buy Copper $ 3.04 per oz. share decline for Asian brands since July. Japanese and South a Toyota used to be easy. That game has changed.” billion in the nine months ended Dec. 31, up from a Source: cnnmoney.com Korean brands accounted for a combined 45.7 percent share of (Source: Bloomberg) Y42.07 billion loss in the same period a year earlier.