Business

NEW YORK — Walmart narrowly lifted its full-year forecast on Thursday following solid quarterly results as it continued to navigate a market challenged by elevated pricing that has depressed demand for some goods.

The giant retailer, which emphasises its strength as a value-oriented vendor, reported profits of $453 million. That compares with a loss of $1.8 billion in the 2022 period, which was hit by large costs tied to an opioid settlement.

Revenues rose 5.2 per cent to $160.8 billion.

The giant retailer now expects full-year profits of between $6.40 to $6.48 per share, up from the prior range of $6.36 to $6.46 a share.

"We had strong revenue growth across segments for the quarter, and we're excited to get an early start to the holiday season," said Chief Executive Doug McMillon.

"From a Thanksgiving meal that costs less than last year, to great prices on fashion, toys, electronics and seasonal decorations, we're here to help families from around the world make this a special time."

Walmart's US division, which accounted for more than two-thirds of revenues, scored a 4.9 per cent jump in comparable sales.

While that is still an impressive count, it is down from more than 8 per cent growth in the year-ago period.

Walmart bills itself as an affordable option for cash-strapped consumers, pointing to the benefits of tremendous economies of scale as the world's biggest retail chain.

The retailer pointed to strong sales in groceries and pharmacy goods, offsetting weakness in discretionary items such as apparel, home and toys.

Results during the quarter were also dented somewhat by elevated spending on store remodels. 

During a conference call with analysts, McMillon acknowledged that the company "could have done a better job on expenses".

However, Walmart said it benefitted from lower supply chain costs compared with the 2022 quarter, when it also heavily marked down merchandise due to oversupply.

Shares fell 6.3 per cent in pre-market trading.

FRANKFURT — Siemens Energy reported a 4.59-billion-euro ($5-billion) annual loss on Wednesday, dragged down by a crisis in its wind power unit, a day after a government-backed rescue package was unveiled for the German group. 

The huge loss in the 2022-2023 financial year for the company, whose operations range from building wind turbines to power grids, was far larger than a loss of several hundred million euros the year before.

While large parts of its business, such as those related to gas and power grids, were healthy, the results were hit by the crisis in its Gamesa wind power subsidiary.

Gamesa has faced long-running technical problems with its onshore wind turbines, which have cost huge sums to fix.

"The wind business remains a major challenge and has led to the net loss in 2023," said the company, admitting it had suffered a "serious setback" in the previous year.

The group's performance in the "near to mid-term" would continue to be impacted, and Gamesa is only expected to break even in financial year 2026.

Siemens Energy runs its financial year from October to September, and the annual results were announced a day after a 15-billion-euro, state-backed rescue deal was unveiled after weeks of talks. 

The deal involves providing "guarantees" to Siemens Energy to allow it continue financing major long-term projects. 

The economy ministry announced it would grant the company 7.5 billion euros worth of guarantees, and others involved, including private banks as well as the larger Siemens conglomerate, which is a major shareholder in Siemens Energy.

Siemens Energy was spun out of Siemens in 2020.

DUBAI — European aerospace giant Airbus announced an order for 10 A350-900 planes by Egypt's state-owned carrier EgyptAir on Tuesday, the second day of the Dubai Airshow.

Airbus commercial director Christian Scherer told a news conference the deal marked "an important milestone" in the "long and successful partnership" with EgyptAir.

Without discounts, which are routinely applied in the industry, the transaction is worth $3.2 billion, according to the manufacturer's latest published list price.

Airbus, which on Monday announced an order for 30 A220-300s from Latvian budget carrier airBaltic, has been overshadowed by US rival Boeing at this year's Dubai Airshow.

Boeing announced a mega-contract with Emirates, the Middle East's biggest airline, on Monday for 55 Boeing 777-9s, 35 777-8s and five 787 Dreamliners in a deal worth $52 billion. 

The 777-9s are expected for delivery in 2025 and the 777-8s are scheduled for 2030.

Low-cost carrier flydubai, also based in the Gulf emirate, announced an order for 30 Boeing 787-9s, valued at $11 billion.

Emirates CEO Tim Clark said on Tuesday that he will not buy Airbus's A350 until he has concluded negotiations with engine manufacturer Rolls Royce, which he blames for a lack of durability and longevity.

Clark said, "Forty per cent of the 350-1000s have been sold into this region," adding: "This is the region that is buying these airplanes and will buy the big numbers if the engine issue's resolved."

Airbus has emphasised that technology used in the A350s means the aircraft consumes 25 per cent less fuel than its competitor's previous models.

The Emirates chief said reliability was paramount in the selection of aircraft. 

"They might not be as advanced in their technology in their build materials. But in the end, what we want is reliant," Clark said. 

Also on Tuesday, Emirates announced contracts worth $1.2 billion with the French aircraft equipment manufacturer Safran.

That includes an agreement for Safran to equip the Emirates fleet of Airbus A350s, Boeing 777X-9s and Boeing 777-300s with new seats costing $1 billion at list price, Emirates said in a press release.

AMMAN — The Kingdom's imports of crude oil and its derivatives, jewellery, cereals and other materials, dropped during the January-August period resulting in an overall decline of  6 per cent in the value of Jordan's imports, to reach JD 12.296 billion, against JD 13.078 billion during the same period of 2022. 

According to the monthly report on foreign trade from the Department of Statistics, the Kingdom's imports of crude oil and its derivatives, as well as mineral oils, recorded a decline of 19.2 per cent, while jewellery imports dropped by 28.5 per cent in, cereals by 16.6 per cent and other materials by 3.8 per cent.  By the end of August, the Kingdom's imports of vehicles, motorcycles and its parts rose by 33.1 per cent, machinery, mechanical tools and their parts by 12.3 per cent and electrical devices by 7.4 per cent.

AMMAN — Royal Jordanian Airways (RJ) announced on Sunday a purchase order for four 787-9 Dreamliner aircraft to modernise and expand its wide-bodied fleet. 

During the ongoing Dubai Airshow, RJ confirmed a previous order to purchase two 787-9 aircraft bringing the total aircraft to six, the Jordan News Agency, Petra, reported. 

In a statement, RJ said that its fleet consist of seven 787-9 aircraft, and adding a new Dreamliner to its fleet will boost its capacity to fly more passengers and cargo for further distances. 

RJ said that the new dreamliners can carry 296 passengers for a distance of 14,010 kilometres which will boost RJ destinations.        

RJ decision to add the 787-9 Dreamliners to our fleet is a testament to our dedication to providing “an unparalleled” travel experience said Vice Chairman and CEO of Royal Jordanian, Samer Majali. This move aligns seamlessly with RJ’s broader strategy of fleet modernisation, Majali added. 

He said that RJ is emphasising fuel efficiency, sustainability and passenger comfort. 

He also said that the Dreamliner's cutting-edge technology will play a pivotal role in elevating our operational capabilities.

President and CEO of Boeing Commercial Airplanes Stan Deal said that this order for additional 787s is “a testament” to Royal Jordanian's longstanding commitment to the market-leading capabilities of the Dreamliner.

PARIS — European aircraft manufacturer Airbus said on Friday it plans to shed 750 jobs in its defence and space business in an overhaul, but intends to reassign workers rather than make compulsory redundancies as business grows.

The cuts will involve some 2 per cent of a total of 34,330 positions at Airbus Defence and Space, which mainly operates in Germany, France and Spain.

Consultations with social partners are ongoing, Airbus said, regarding job reassignments.

The group, facing difficulties in executing a range of military and space programmes, has been reorganising for several months now as it targets a "better balance between risks and opportunities", Chief Executive Guillaume Faury explained on presenting the group's results on Wednesday.

Airbus Defence and Space is due to set up a "simplified structure for the future" early next year comprising "three fully autonomous and responsible business lines", according to a statement sent to AFP.

The first, Air Power, will bring together the Military Air Systems activity (including Eurofighter, MRTT tanker, C295) and that dedicated to the Future Combat Air System, the future combat aircraft project developed for Germany, France and Spain.

The second activity concerns Space Systems and the third, Connected Intelligence, deals notably with secure communications and computer networks.

Earlier this week, Airbus said net profit was up 21 per cent as it assembled and delivered more planes to clients.

AMMAN — Trade volume in the real estate sector reached JD5.896 billion during the first 10 months of this year, according to the Land and Survey Department's monthly report. 

The monthly report showed that the trade volume in October recorded JD629 million, a 3 per cent increase in comparison with September 2023, the Jordan News Agency, Petra, reported.   

The department noted that real estate purchases in the first 10 months decreased by 4 per cent compared with the same period of last year.

Revenues during the past 10 months reached JD220 million, a drop by two per cent in comparison with the same period last year. 

In comparison with last September, revenues in October increased by 18 per cent, recording JD42 million.

WASHINGTON — The US Federal Reserve (Fed) is likely done raising interest rates to tackle inflation but probably won't cut them "in the short term", a senior policymaker said on Wednesday. 

The Fed recently voted to hold its benchmark lending rate at its current 22-year high for the second consecutive meeting, and indicated it still has "a long way to go" to bring inflation down to its long-run target of 2 per cent.

Although inflation is still above this level, it has slowed markedly since last year, while the US economy remains resilient, and the labour market is showing signs of weakening — raising hopes the Fed can tame price increases while avoiding a recession.

In prepared remarks Wednesday, Philadelphia Fed President Patrick Harker told a conference in Evanston, Illinois, that he felt holding interest rates at their current, restrictive, level was the right course of action.

"With monetary policy, there are always lags. Holding the rate steady will give those lags time to catch up," said Harker, a member of the Fed's rate-setting committee.

"While I see us on the path of taming inflation and protecting our economic underpinnings, I would also caution that a decrease in the policy rate is not something that is likely to happen in the short term," he added. 

Harker said that rates would likely need to remain "higher for longer, as the other downward pressures on inflation work in tandem with the current policy rate to return our economy to balance".

The comments from Harker, a relatively "neutral" policymaker according to a recent Deutsche Bank report, underscores the difference of opinion between members of the Fed's interest rate-setting committee. 

Most policymakers indicated back in September that they expect one more interest rate hike before the year is out.

But since then, a number of them have suggested that the Fed may be done hiking, even as others have continued to back the prospect of further monetary tightening, if needed. 

On Tuesday, Fed Governor Michelle Bowman told a conference in Ohio that she continued to expect the Fed will need to raise rates further "to bring inflation down to our 2 per cent target in a timely way."

"I see a continued risk that core services inflation remains stubbornly persistent," she added, referring to a measure of inflation that strips out volatile components like food and energy.

Futures traders currently assign a probability of more than 90 per cent that the Fed will vote to hold interest rates steady at its next rate meeting in December, according to data from CME Group.