Page 25 - ARUBA TODAY

BUSINESS Thursday 17 augusT 2017
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Target says turnaround efforts are bringing shoppers back

By JOSEPH PISANI tions and its online sales major retailers reported an- said Wednesday that its $672 million, or $1.22 per
AP Business Writer jumped 32 percent. The other quarter of falling sales children’s line Cat & Jack share, as higher costs cut
NEW YORK (AP) — Tar- Minneapolis-based com- as more people shop on- brought in $2 billion in sales into sales gains. Earnings,
get, which is spending pany also boosted its earn- line or at other stores. Rival since its launch a year ago. adjusted for one-time gains
billions to remodel stores ings expectations for the Walmart will report its earn- Same-store sales, a key and costs, came to $1.23
and strengthen its online year. ings on Thursday. measure of a retailer’s per share, which was 3
business, showed signs “It’s a clear sign that we’re Target is spending $7 billion health, rose 1.3 percent in cents better than expect-
Wednesday that the turn- pursuing the right strategy,” in three years to remod- the quarter, beating the ed, according to a survey
around efforts are starting said CEO Brian Cornell in a el old stores, open small 0.3 percent rise analysts of industry analysts by Zacks
to win back shoppers. conference call Wednes- ones in cities and college expected, according to Investment Research.
The retailer reported that a day. towns and offer faster de- FactSet. Digital sales made Revenue rose 1.6 percent
key sales figure rose in the The strong results from Tar- livery for online orders. It is up the bulk of the overall to $16.43 billion, beating
second quarter, its revenue get came a week after J.C. also adding more clothing same-store sales increase. the $16.28 billion Street
beat Wall Street expecta- Penney, Macy’s and other and furniture brands, and Profit fell 1.2 percent to estimate.q
UnitedHealth CEO to step down after run of more than decade

By TOM MURPHY years and dates back to
AP Health Writer Wichmann’s appointment
UnitedHealth Group has as president in 2014, ac-
picked company President cording to a company
David Wichmann to re- spokesman.
place CEO Stephen Hems- Hemsley said in a state-
ley in a long-planned transi- ment that the timing was
tion that Wall Street greet- right, “as the company is
ed with polite applause. performing strongly and
The nation’s largest health has a positive outlook for
insurer says Wichmann, 54, the forseeable future.”
will take over Sept. 1, and UnitedHealth is coming off
Hemsley will become ex- a second quarter in which
ecutive chairman of the it made $2.28 billion and
company’s board. Current raised its forecast for 2017,
Chairman Richard Burke a year in which analysts
will shift to lead indepen- who follow the company
dent director. expect it to bring in around
Wichmann, a former part- $200 billion in revenue.
ner with Arthur Ander- Wednesday’s announce-
sen, joined UnitedHealth in ment generated little sur-
1998, a year after Hemsley prise among those analysts.
arrived, and has worked Sheryl Skolnick said in a
through several key execu- research note that she In this April 29, 2014 photo, Stephen Hemsley, president and CEO of UnitedHealth Group, speaks
tive roles. He has overseen was “very comfortable” at a news conference, in Southfield, Mich. UnitedHealth Group will change leaders Sept. 1, 2017,
the company’s largest with the change because promoting long-time executive David Wichmann to replace Hemsley, who has led the nation’s
business, its health benefits Hemsley will still have an largest health insurer since 2006.
segment, since 2014. Wich- important role. The Mizuho (AP Photo)
mann also has led mergers Securities USA analyst also but the company also benefits manager Cata- by far the longest-serving
and acquisitions as the in- noted that Burke, one of has been plowing more maran a few years ago in CEO among major health
surer pushed well beyond the company’s founders, resources into its Optum a deal valued at more than insurers. His tenure began in
processing doctor bills and will remain involved, “so business, which provides $12 billion. More recently, 2006, when he took over af-
delved deeper into other the guardians of the (Unit- pharmacy benefits man- UnitedHealth spent about ter the previous leader, Wil-
elements of patient care. edHealth) galaxy are firmly agement and technology $2.3 billion to buy surgery liam McGuire, was forced
The leadership transition in place.” services and also operates center operator Surgical to leave over a scandal in-
announced Wednesday Health insurance is Unit- clinics and doctor’s offices. Care Affiliates. volving the backdating of
had been underway for edHealth’s main business, It acquired the pharmacy The 65-year-old Hemsley is company stock options.q
Hong Kong’s Cathay posts $262M 1H loss on fierce competition

By KELVIN CHAN It said revenue was nearly the year isn’t expected to than today. Another fac- from China and the rest of
AP Business Writer flat at HK$45.9 billion ($5.7 improve. Cathay is suffering tor was the strengthening Asia combined with global
HONG KONG (AP) — Hong billion). “It was a challeng- as budget carriers around dollar, which raises costs for e-commerce growth.
Kong airline Cathay Pacific ing first half. The perfor- Asia and airlines based in visitors to the city and cuts The latest numbers add to
reported a loss in the first mance of our core airlines mainland China like China into profits earned in other the financial woes at Ca-
half of the year on Wednes- was disappointing,” said Southern and China Eastern currencies after they’re thay Pacific, Hong Kong’s
day, blaming the severe Chairman John Slosar. The flood the market with pas- converted back to the biggest carrier.
toll from fierce competition. company also operates senger seats on key routes. Hong Kong dollar, which is Earlier this year it an-
The airline said it lost 2.1 Asia-focused regional car- Fuel, the airline’s single big- pegged to the U.S. dollar. nounced it was embarking
billion Hong Kong dol- rier Cathay Dragon. gest expense, also ate into Slosar said a “stellar perfor- on sweeping layoffs after
lars ($262 million) in the six Slosar said the biggest fac- earnings because of both mance” at Cathay’s car- posting a full-year loss of
months to June, compared tor was strong competition, rising oil prices and historic go business helped ease $74 million for 2016, which
with a HK$353 million profit adding that the operating contracts that locked in some of the pain, thanks to was Cathay’s first annual
from the previous year. environment for the rest of fuel bills at higher levels strong demand for exports loss in nearly a decade.q