Page 25 - Aruba Today

BUSINESS A25
VW sales dip in Europe, but no more than competitors
COLLEEN BARRY
AP Business Writer
MILAN (AP) — European
car buyers appear reluc-
tant to punish Volkswagen
for its emissions scandal,
penalizing the German au-
tomaker’s sales last month
no more than some of its
mass-market competitors.
The European car market
expanded 2.9 percent in
October, topping 1.1 million
Wal-Mart tops 3Q profit forecasts, narrows full-year outlook
NEW YORK (AP) — Walmart
reported improved cus-
tomer traffic and an uptick
in a key sales figure for the are telling the company
third quarter, even as a
stronger dollar pressured its ment in the stores.
performance overseas.
The world’s largest retailer
also issued a forecast for
the holiday shopping sea-
son that largely topped
Wall Street expectations,
and narrowed its full-year
outlook after cutting it in
August.
Its shares rose more than 2
percent in morning trading
Tuesday.
Wal-Mart has been pres-
sured on a number of
fronts this year. The com-
pany, based in Bentonville,
Arkansas, is facing increas-
ing competition from on-
line retailers like Amazon.
com and dollar stores,
and its profits have been
squeezed by pay raises for
workers and a strong U.S.
dollar that has dampened
sales from overseas.
In the U.S., the company is
also trying cleanliness and
service. Greg Foran, CEO
US pension insurer posts record deficit for FY2015
MARCY GORDON
AP Business Writer
WASHINGTON (AP) — The
deficit racked up by the
federal agency that in-
sures pensions for about
40 million Americans has
increased 23 percent to
$76.4 billion. The agency’s
program for so-called
multi-employer pension
plans continues to ac-
count for a large share of
the deficit, $52.3 billion.
Multi-employer plans are
pension agreements be-
tween labor unions and a
units as growth slowed in
all major markets, accord-
ing to new figures released
Tuesday by the European
carmakers’ association
ACEA.
The expansion marked
the 26th straight month of
growth, albeit sluggishly
with two of the biggest mar- market should “remain on
kets, France and Germany,
growing by just 1 percent,
and Britain contracting by
of the U.S. division, said
during a call with report-
ers Tuesday that customers
they’re seeing improve-
During the quarter, the
company said sales at
stores open at least a year
rose 1.5 percent, marking
the fifth straight quarterly impact of currency fluctu-
increase. But the increase
was driven by higher traf-
fic, while average spend-
ing per visit dipped. This
figure is a key gauge of a
retailer’s health because it
excludes results from stores
recently opened or closed.
For the fourth quarter,
which includes the key
holiday shopping season,
Wal-Mart said it expects
sales at established loca-
tions to rise 1 percent. Fo-
ran declined to say how
much that would be driven
by increased traffic, versus
higher spending. But he ex-
pressed confidence in the
company’s holiday plans.
“We’re feeling good about
what we’re pulling togeth-
er,” Foran said.
group of companies, usu-
ally in the same industry.
They cover about 10 mil-
lion workers.
The deficit reported Tues-
day for the year ended
Sept. 30 was the widest in
the 41-year history of the
Pension Benefit Guaranty
Corp. It has now run short-
falls for 13 straight years. their pensions by law.
But the rate of increase
slowed from last year
when the deficit nearly
doubled to $62 billion from
$36 billion in the previous
fiscal year.
Wednesday 18 November
as much. a quarter of the market, early to say if VW’s sales
IHS Automotive analyst Car- in the first full month of fig- had been hit by the emis-
los Da Silva said the slow- ures since it acknowledged sions scandal, noting that
ing growth reflects weaker cheating on U.S. diesel European buying practices
pent-up demand after six emissions tests. Volkswagen take longer to translate into
years of crisis. He forecasts brand sales slipped 0.2 per- sales numbers, with cars
2015 registrations will grow 8 cent, while all of Volkswa- being ordered and not pur-
percent this year to nearly gen group sales — includ- chased out of stock.
13.6 million units, saying the ing the brands SEAT, Skoda, By comparison, mass-mar-
Porsche, Audi and Lambo- ket competitor PSA Peu-
its positive path.” rghini — dropped 0.5 per- geot Citroen saw sales fall
Volkswagen remained the cent. 0.9 percent, while Renault
top seller, commanding Da Silva said it was too sank 0.7 percent.q
A worker pushes shopping carts in front of a Walmart store in La Habra, Calif. Walmart reported
improved customer traffic and an uptick in a key sales figure for the third quarter, even as a
stronger dollar pressured its performance overseas. (AP Photo/Jae C. Hong)
Sales in Wal-Mart’s inter- to $3.3 billion. But its earn- revenue was $122.4 bil-
national segment, mean- ings of $1.03 per share lion. Wall Street expected
while, fell 11 percent to topped Wall Street expec- $117.82 billion.
$29.81 billion. Excluding the tations for 97 cents per Wal-Mart also narrowed its
share, according to Zacks forecast for full-year earn-
ations, sales were $34.7 bil- Investment Research. ings to a range of $4.50
lion. For the quarter ended Revenue slipped to $117.42 to $4.65 after cutting that
Oct. 31, Wal-Mart Store’s billion from $119 billion. On outlook in August to $4.40
net income fell 11 percent a constant currency basis, to $4.70 per share.q
The gap widened in recent The agency said the in- That law also allows cuts
years because the weak creased deficit for the for current retirees in multi-
economy triggered more latest fiscal year was due employer pension plans.
corporate bankruptcies largely to worsening fi- The PBGC estimates that
and failed pension plans. If nances of some multi-em- the risk of insolvency for the
the trend continues, some ployer pension plans. How- multi-employer program is
experts say the agency ever, the agency said, the more than 50 percent in
could need an infusion of risk of its multi-employer 2025 and 90 percent by
taxpayer funds to pay retir- program running out of 2032.
ees, who are guaranteed money declined because In the latest year, 17 multi-
of increased insurance employer pension plans
The PBGC also said it premiums paid by multi- were terminated or were
paid $5.7 billion to about employer plans. Congress deemed to be likely to be-
800,000 people in failed stepped in and mandated come insolvent within the
pension plans, close to the the higher premiums in next 10 years, the agency
amount paid out in fiscal legislation enacted in De- said. It didn’t identify the
2014. cember. plans.q