Mixed results for big US firms

Record profits for Exxon but losses for Starbucks as market uncertainty continues.

    Starbucks said it would cut up to 12,000
    jobs earlier this year [Reuters]

    The company said its profits had suffered a net loss of $6.7 million, or one cent per share, and said the chain could close more stores in the year ahead.

    Rising costs

    Starbucks had earlier lowered its 2008 profit forecast, saying fewer customers were visiting US stores and costs were rising.

    Until now the chain had enjoyed a steady expansion in the US and abroad since it went public in 1992.

    However, shares for the firm went up by four per cent as the company said it expected to meet its profit target for 2009.

    Earlier this month the chain said it would close 600 US outlets and cut up to 12,000 jobs in the next year, as the company struggled to compete in the faltering US economy.

    Rising crude prices

    Exxon's results were partly aided by rising crude oil prices following strong demand, particularly in China and India.

    However, the results, which represent a 40 per cent jump from the same quarter last year, are likely to spark anger among consumers as oil prices continue to reach record highs.

    Analysts say the mixed results of both firms are due to US consumers spending less money on luxuries and saving their cash instead for necessities.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Why Saudi-Israeli normalisation could be dangerous

    Why Saudi-Israeli normalisation could be dangerous

    Apart from being disastrous for Palestine, normalising relations with Israel could get Saudi Arabia in real trouble.

    Gender violence in India: 'Daughters are not a burden'

    Gender violence in India: 'Daughters are not a burden'

    With female foeticide still widespread, one woman tells her story of being mutilated for giving birth to her daughters.

    What is Mohammed bin Salman's next move?

    What is Mohammed bin Salman's next move?

    There are reports Saudi Arabia is demanding money from the senior officials it recently arrested.