Apple supplier profit warning

RSA Insurance's chief executive has quit after the company issued its third profit warning in six weeks and admitted it was short of capital and its dividend was under review. Simon Lee has left the general insurer with immediate effect. Chairman Martin Scicluna will run the company until a replacement is found. Shares in RSA fell 20% on the news, although they later recovered to close down 7% at 92.5p. RSA said it had been forced to strengthen reserves in Ireland by £130m to meet potential claims for whiplash at its motor insurance arm. The injection of funds is on top of £70m announced on 8 November and comes out of the group's annual profit. The group will move £135m of capital into the Irish business to meet rules on solvency. RSA's problems in Ireland have already claimed the jobs of its top three Irish executives and are being investigated by the country's regulators. RSA also said it had been hit by additional claims for £25m after the UK and Scandinavia were … [Read more...] about RSA Insurance chief executive quits after third profit warning in six weeks

(Reuters) - Ted Baker’s chief executive and chairman quit on Tuesday as the British fashion retailer warned its full-year profit will fall more than expected and suspended its dividend due to weak Black Friday sales, sending its shares to a 16-year low. Pressure has mounted on Ted Baker’s (TED.L) management team since it disclosed a week ago that it may have overstated inventory by as much as 25 million pounds ($32 million). Lindsay Page is leaving after just eight months in charge of Ted Baker, which has been struggling with weak consumer demand and misconduct allegations against its founder and former CEO Ray Kelvin, which he has denied. “The last 12 months has undoubtedly been the most challenging in our history,” Ted Baker said in a statement as its shares fell as much as 30% to 16-year lows. In contrast to some other British retailers, Ted Baker said its performance during November and the Black Friday sale period was below expectations, leading it to … [Read more...] about Ted Baker CEO exits as shares pummeled by profit warning

Shares in sofa giant DFS have plunged by more than 20pc after it blamed uncertainty around the general election for a profit warning.  The largest furniture manufacturer in Britain said it had been hit by “significant” declines in the number of people coming into its stores. The profit warning has echoes of its excuses in 1998 when the sofa retailer's founder Lord Kirkham blamed poor sales on the country's grief following the death of Diana, Princess of Wales.   DFS said that the "customer uncertainty regarding the general election and the uncertain macroeconomic environment" had led to fewer people coming to its stores and a "material" drop in customer orders.  … [Read more...] about DFS shares plunge after blaming election for profit warning

The John Lewis Partnership has said it will make no profit in the first six months of this year and is to close five Waitrose stores as tough trading on the high street takes its toll. The group, which operates 50 John Lewis department stores and 350 Waitrose shops, said full-year profits for the year to January 2019 will also be substantially lower than last year. JLP blamed the likely fall on market uncertainty and significant extra costs as it invests in IT and suffers the pinch from Brexit-fuelled inflation, at a time when it has been forced to cut prices because of widespread discounting by ailing competitors. The group said it would be gradually slimming down its high street presence over time, beginning with the sale of four Little Waitrose convenience stores to the Co-op and the chain’s supermarket on Camden High Street, north London, to Aldi, which will affect about 200 staff. The convenience stores changing hands are in Spinningfields and near Piccadilly station in … [Read more...] about Five Waitrose stores to close after John Lewis issues warning on profits

Congress sent a warning to tech giants on Tuesday, telling companies including Apple and Facebook that it intends to pass legislation to regulate encryption if Silicon Valley can't reach an acceptable compromise with law enforcement agencies. Tech companies and privacy advocates have long supported encryption, noting that the privacy and security technology protects people from hackers, crooks and authoritarian government. Law enforcement officials, however, argue that encryption blocks criminal investigations by preventing access to suspects' devices and to their communications on messaging apps.This debate took center stage in 2016 when Apple fought an FBI order to help unlock a terrorist's iPhone, arguing that providing a master key to decrypt devices would endanger all iPhone users. At a Senate Judiciary Committee hearing on Tuesday, Apple's manager of user privacy, Erik Neuenschwander, reiterated that point for lawmakers. "At this time, we've been unable to identify … [Read more...] about Congress warns tech companies: Take action on encryption, or we will

Tapping factories in Brazil and India has not lessened Apple Inc`s dependence on China, the company`s supply chain data shows, raising the stakes for the iPhone maker as U.S. President Donald Trump wages a trade war and promises more tariffs. Apple faces levies of 15% imposed by Trump`s administration on major products made in China such as smartwatches and wireless headphones on Sept. 1, with a tariff on its biggest seller, the iPhone, to take effect on Dec. 15. Graphic: Apple products made in China could face tariffs by year’s end https://tmsnrt.rs/2Zg4zO6 Few American firms are as tightly bound to Asia`s largest economy as Apple. Contract factories owned by Hon Hai Precision Industry Co Ltd`s Foxconn, Pegatron Corp, Wistron Corp and others employ hundreds of thousands of workers to assemble Apple devices. In recent years, Apple`s contract manufacturers have expanded into other countries. India, for example, had no Apple contract manufacturer locations in 2015 but expanded to … [Read more...] about Apple’s data shows a deepening dependence on China as Trump’s tariffs loom