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BUSINESSFriday 12 February 2016
Nokia says quarterly profit rose but cautions on outlook
Associated Press said it can expect a chal- Stock Exchange. “Nokia is growth in the technologies formation,” Suri said he was
HELSINKI (AP) — Nokia lenging first quarter as the struggling to wrap up the sector. Nokia said it booked pleased to close the year
Corp. saw fourth-quarter company prepares to es- Alcatel deal and the mar- a gain of $2.5 billion euros with “solid performances”
profit grow more than 50 tablish itself as a leading ket for networks is pretty from the sale of its mapping from both remaining units
percent to 498 million eu- global networks provider tough globally, so no ma- services to leading auto — networks and technolo-
ros ($560 million) on a slight on the completion of its jor surprises there,” said companies, Audi, BMW gies. Networks, which ac-
increase in sales, but the 15.6 billion-euro acquisition Neil Mawston from Strat- and Daimler, completed counts for 90 percent of
telecom networks compa- of ailing French company egy Analytics near London. in December and reported total sales, grew 5 percent
ny cautioned it would face Alcatel-Lucent. Analysts “This year will probably be it as discontinued opera- year-on-year to 3.2 billion
some “market headwinds,” said the results were much pretty much the same as tions. CEO Rajeev Suri said euros in the quarter, while
especially in China. as expected, although 2015, with some markets the company was on track the technology unit, which
The pared-down Finnish some markets had brought see-sawing from quarter to to compete the acquisition controls the company’s
company, which sold off disappointments, push- quarter.” Revenue grew 3 of Alcatel-Lucent with 91 vast portfolio of patents,
HERE mapping services ing Nokia’s share price to percent for continuing op- percent of its share capital. saw sales jump 170 percent
in November after sell- close down 2 percent at erations in the period, to Describing 2015 as “anoth- in the quarter to 403 million
ing its handsets division, 5.22 euros on the Helsinki 3.6 billion euros, with strong er dramatic year of trans- euros. q
PepsiCo’s revenue in North America climbs, helped by pricing
CANDICE CHOI Pepsi bottles are on display at a supermarket in Haverhill, Mass. PepsiCo reported positive finan- drop the pricing because
Associated Press cial results Thursday, Feb. 11, 2016. it’s not going to drive ad-
NEW YORK (AP) — Pep- ditional demand.”
siCo said revenue for its (AP Photo/Elise Amendola) In its Frito-Lay unit, Pep-
North American snacks siCo says it’s expanding its
and drinks units rose in the Both Coke and Pepsi are cans and 2-liter bottles of cans continue moving household reach even fur-
fourth quarter, boosted by also slashing costs and in- sodas, PepsiCo Inc. has away from traditional so- ther with new bag sizes.
pricing. The maker of Frito- vesting more in marketing, also been trying to move das. In September, Tom Greco,
Lay chips and Tropicana which they say helps jus- away from the discount- During a call with analysts who heads Frito-Lay North
juice has been retooling its tify higher prices and drives ing that helped drive sales Thursday, PepsiCo CEO America, said the compa-
product lineup and rethink- sales. in the past. The change in Indra Nooyi noted that ny had recently introduced
ing pricing to fetch more For the typical 12-ounce strategy comes as Ameri- “there’s no point trying to 8-ounce bags of Lays’,
money from shoppers. The while trimming its lineup
strategies include the intro- of 10-ounce bags. The
duction of new lines of Ga- smaller bags are intended
torade and Mountain Dew to improve profit margins
Dewshine, which comes in and address the growing
glass bottles that people number of people living in
might feel is worth a higher smaller households, Greco
price. The focus on finding said. For the quarter end-
novel ways to extract more ed Dec. 26, PepsiCo said
money from shoppers its profit rose 31 percent
comes as major packaged to $1.72 billion, helped by
food and beverage mak- cost cutting. Earnings, ad-
ers face slowing growth in justed for one-time gains
saturated markets like the and costs, came to $1.06
United States. Coca-Cola per share. That matched
Co., for instance, has been analyst expectations. To-
pushing its mini-cans that tal revenue fell 7 percent
are seen as more premium to $18.59 billion, due to a
offerings, and even fea- hit from foreign exchange
tured the 7.5-ounce can in rates on international sales.
its Super Bowl ad. q
Reynolds American 4Q profit jumps, but misses forecasts
NEW YORK (AP) — Ciga- when it booked pension ings of 50 cents per share been focusing on cigarette Thursday that its board ap-
rette maker Reynolds charges and other costs on $3.05 billion in revenue alternatives such as snuff, proved a nearly 17 percent
American’s fourth-quarter ahead of last year’s closing from the Winston Salem, chewing tobacco and increase in its quarterly
profit shot up 89 percent of its $25-billion takeover of North Carolina-based com- electronic cigarettes as tax cash dividend to 42 cents
compared to the final Newport seller Lorillard Inc. pany. hikes, smoking bans, per share from 36 cents.
quarter of 2014, when earn- Results adjusted for one- Revenue from the compa- health concerns and social The new dividend will be
ings fell due to some one- time items totaled 48 cents ny’s R.J. Reynolds segment stigma make the cigarette- payable on April 1 to share-
time costs. per share in the most re- jumped 51 percent to $2.52 business tougher. holders of record on March
The parent of Camel and cent quarter, and revenue billion, Reynolds American ex- 10.
Pall Mall cigarette maker jumped 43 percent to $3.05 helped by the addition of pects 2016 adjusted earn- Shares of Reynolds Ameri-
R.J. Reynolds said Thursday billion, the Newport brand. Ameri- ings to range between can Inc. slipped 24 cents to
that it earned $279 million in spurred in part by the Loril- can Snuff sales climbed $2.25 and $2.35 per share. $47.22 in morning trading
the three months that end- lard deal. about 12 percent to $226 Analysts are looking for Thursday. Its shares are up
ed Dec. 31. That’s up from FactSet says analysts ex- million. $2.33 per share. 31 percent over the past
$148 million a year ago pected, on average, earn- Tobacco companies have The company also said year.q
