07282016Thu
Last update: Thu, 28 Jul 2016 09pm

Company News: World

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Twitter Inc reported its slowest revenue growth since going public in 2013 and set a disappointing forecast, fanning concerns that faster growing social media services will make it a niche product. The microblogging service operator's shares fell 11 percent in extended trading to $16.40. While Twitter struggles to find a way to boost user growth and win over advertisers, social media services such as Instagram and Snapchat are expanding their footprints.
Boeing reported a second-quarter loss Wednesday due to elevated costs for an Air Force contract and for commercial air production as it confirmed its full-year plane deliveries targets. The US aerospace giant lost $234 million for the quarter ending June 30 following $2.1 billion in unexpected charges announced last week. The smaller-than-expected loss compared to $1.1 billion in earnings in the year-ago quarter. Revenues were $24.8 billion, above the $24.0 billion projected by analysts.
UAE telecoms giant Etisalat announced Wednesday net profits of $625 million in the second quarter of 2016, a 51-percent jump on the same period of last year. Net profit in April-June after royalty reached 2.3 billion dirhams ($625 million), Etisalat said, while revenues increased two percent to 13.3 billion dirhams ($3.61 billion). The surge in profits is in stark contrast with Etisalat's performance in the corresponding period last year, when profits plunged 40 percent. The group attributed the fall largely to the impact of additional provisions for its troubled Saudi unit, Mobily, as well as forex losses.
With iPhone sales and profits sliding, Apple on Tuesday sought to highlight its growth in services as it seeks to reduce dependence on its main cash driver. In its quarterly update, Apple said profits slumped 27 percent from a year ago to $7.8 billion on a sharp drop in iPhone sales.
Germany's number two bank, Commerzbank, said late Monday its capital position weakened in the second quarter while its profits over the period slumped almost a third. The Frankfurt-based group said its net profit between April and June plummeted 32 percent compared to a year ago to 209 million euros ($230 million).
Fiat Chrysler Automobiles said Wednesday its second quarter net profit rose by a quarter thanks to better operating performance in its main markets and a jump in Jeep sales. However the net profit of 321 million euros ($353 million) was far below the 619 million euro consensus forecast of analysts surveyed by Factset.
Caterpillar said Tuesday it planned additional job cuts in the second half of 2016 as sluggish conditions in energy and mining weighed on second-quarter earnings. Caterpillar, which manufactures industrial equipment for energy, mining and construction companies, said it expects higher costs due to restructuring and job cuts as it cited global economic uncertainty due in part to political upheaval in Turkey and Britain.