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

    From Zimbabwe to England: A story of war, home and identity

    The country I saw as home, my parents saw as oppressors

    What happens when you reject the identity your parents fought for and embrace that of those they fought against?

    Becoming Ocean: When you and the world are drowning

    Becoming Ocean: When you and the world are drowning

    One woman shares the story of her life with polycystic kidney disease and sees parallels with the plight of the planet.

    The evening death came for me: My journey with PTSD

    The evening death came for me: My journey with PTSD

    On a gorgeous Florida evening, a truck crashed into me. As I lay in intensive care, I learned who had been driving it.