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					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

                                               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-
   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.
                         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                                                                      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: &    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:       Korean brands accounted for a combined 45.7 percent share of                                                           (Source: Bloomberg)      Y42.07 billion loss in the same period a year earlier.