PC maker HP to cut up to 9,000 jobs in restructuring push - CNBC

U.S. personal computer maker HP Inc. said on Thursday it will cut up to 16% of its workforce as part of a restructuring plan aimed at cutting costs.

The company will cut about 7,000 to 9,000 jobs through a combination of employee exits and voluntary early retirement, it said in a statement.

HP estimates the plan will result in annual gross run rate savings of about $1 billion by the end of fiscal 2022, it added.

The company had about 55,000 employees worldwide as of Oct. 31, according to a filing with the U.S. Securities and Exchange Commission. That would mean up to 16% targeted in the cuts, Reuters calculation showed.

The logo of the 3D printer manufacturer HP is seen during the event. Feria de Barcelona hosts the third edition of the (3D) industry week.

Paco Freire | LightRocket | Getty Images

In connection with the restructuring, HP said it expects to incur an overall charge of about $1 billion, of which $100 million will be realized when it reports its fourth-quarter earnings.

"We are taking bold and decisive actions as we embark on our next chapter," said Enrique Lores, the company's incoming chief executive officer.

"We see significant opportunities to create shareholder value and we will accomplish this by advancing our leadership, disrupting industries and aggressively transforming the way we work."

Lores will take over the CEO position on Nov. 1 from Dion Weisler.

Palo Alto, California-based HP also said its board on Sept. 30 approved an additional $5 billion in share buybacks.

HP expects to generate free cash flow of at least $3 billion in fiscal 2020 and return at least 75% to shareholders through a 10% quarterly dividend increase and share buybacks, it added.

The company said it expects its adjusted earnings in the range of $2.22 to $2.32 per share for fiscal 2020.

For the current fiscal year, it expects adjusted earnings to be in range of $2.18 to $2.22, the company said when reporting its third-quarter earnings.

HP's shares have fallen about 10% this year up to Thursday's close.

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2019-10-04 09:24:18Z
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BP CEO Bob Dudley to step down, Bernard Looney will succeed - CNBC

British Petroleum (BP) Chief Executive Bob Dudley (R) participates to a conference during the event "Tomorrow in Motion" on October 1st, 2018 on the eve of the first press day of the Paris Motor Show.

ERIC PIERMONT | AFP | Getty Images

BP chief executive Bob Dudley will step down from his current role at the end of March next year, the energy giant announced Friday.

Dudley, who has worked with BP for 40 years and held the position of CEO for almost a decade, will be replaced by BP's current upstream chief executive, Bernard Looney.

The FTSE 100 giant said in a press release that Dudley, who is 64 years old, has decided to step down from his role following the delivery of the firm's 2019 full-year results on February 4, 2020. He will then retire on March 31 later that year.

Looney, 49, will continue with his current role until February 5, at which point he will take the reins from Dudley and join the BP board.

Shares of BP traded up almost 1% on the news.

"It has been the privilege of a lifetime to serve this company and work in this industry for the past four decades. I have worked with so many committed people from all over the world — both inside and outside BP — and I am enormously proud of all the things we have achieved together to provide energy for the world," Dudley said in a statement on Friday.

"Bernard (Looney) is a terrific choice to lead the company next. He knows BP and our industry as well as anyone but is creative and not bound by traditional ways of working. I have no doubt that he will thoughtfully lead BP through the transition to a low carbon future," he added.

'Challenging time'

Dudley took over as CEO of BP on October 1, 2010 in the wake of the biggest oil spill in U.S. history. The Deepwater Horizon catastrophe killed 11 people and threatened the company's existence.

His job was to try to restore the company to a position it held before the explosion, managing the company's balance sheet as it faced billions of dollars worth of penalties and clean-up costs.

"Bob has dedicated his whole career to the service of this industry. He was appointed chief executive at probably the most challenging time in BP's history," BP Chairman Helge Lund said in a statement.

"During his tenure he has led the recovery from the Deepwater Horizon accident, rebuilt BP as a stronger, safer company and helped it re-earn its position as one of the leaders of the energy sector. This company — and indeed the whole industry — owes him a debt of gratitude," Lund said.

A BP company logo is displayed on a fuel pump on the forecourt of a gas station operated by BP Plc in London, U.K.

Chris Ratcliffe | Bloomberg | Getty Images

The BP CEO also faced a historic collapse in oil prices in 2014, with the downturn in crude futures ultimately forcing BP to pull back on capital spending plans and delay investment projects.

More recently, BP agreed to a request from shareholders in May for greater detail and transparency on how each capital investment decision would align with the Paris climate agreement — an international accord that seeks to limit global warming to less than 2 degrees Celsius.

Last month, Dudley said BP would sell some of its most carbon-intensive projects and reduce investment in others to try to improve the firm's environmental footprint.

The energy giant has been targeted by climate activist groups on numerous occasions in recent months, with demonstrators increasingly angry about the lack of progress toward a lower-carbon future.

Shares of BP have increased by about 10% since Dudley came to the helm.

Who is Bernard Looney?

Looney has run BP's upstream business since April 2016 and has been a member of the firm's executive management team since November 2010.

BP's upstream segment includes 17,000 people operating across almost 30 countries and produces around 2.6 million barrels equivalent of oil and gas a day.

An Irish citizen, Looney joined BP in 1991 as a drilling engineer and worked in operational roles in the North Sea, Vietnam and the Gulf of Mexico.

"It has been a great pleasure to work with Bob and it is an honor to succeed him as chief executive. I am humbled by the responsibility that is being entrusted to me by the board and am truly excited about both the role and BP's future," Looney said.

"Our company has amazing people, tremendous assets, and a set of core values that guide our actions, but most of all we have a desire to be better. I look forward to tapping into that desire and building on the strong foundation that Bob has built as we meet society's demand for cleaner, better energy."

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2019-10-04 05:42:57Z
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2020 Chevy Corvette Stingray Convertible gets hardtop looks - CNET

The 2020 Corvette convertible's hardtop takes just 16 seconds to go down.

Jon Wong/Roadshow

The  2020 Chevrolet Corvette brings some very noteworthy firsts to the sports car party. It's the first 'Vette to use a mid-engine layout, the first one to use a dual-clutch transmission and now, with the debut of the 2020 Corvette Convertible on Wednesday, the first one to use a power-folding hardtop.

Up until now, soft tops were the only roofs for Corvette convertible models. But the C8's move to a hardtop does come with some good benefits, such as a quieter cabin when the roof is up, better security than a ragtop (no cut-and-grab here) and cleaner styling. A body-colored roof comes standard on all cars, though Chevy is letting customers spec a Carbon Flash-painted top for a two-tone appearance.

The composite hardtop, which can be operated at speeds of up to 30 mph, takes 16 seconds to go down thanks to six electric motors. The electric top system is also new replacing the hydraulic unit found in previous Corvette convertibles for improved reliability, according to Chevrolet.

When stored, the top sits beneath a tonneau cover that features an engine cooling vent and aero-optimized nacelles, the latter supposedly inspired by fighter jet engine housings. While they're quite large, Chevy says the nacelles are designed to reduce air circulating into the cabin. Helping to further reduce cabin wind buffeting at speed is a power rear window that can be moved up and down with the top up or down.

As for the tradeoffs that typically come with convertibles, engineers made every effort to keep them at a minimum. From a functional standpoint, the trunk can still hold two sets of golf clubs with the top down, and the "frunk" is still capable of holding a TSA-approved carry-on as well as a laptop bag.

When it comes to performance, the Corvette's chassis was designed from the beginning to account for the convertible body style, so structural rigidity concerns are nonissues. The Corvette convertible features the same coefficient of drag as the coupe, according to Chevrolet -- with the top up and the Z51 package's spoiler affixed, anyway. There are, however, some changes to the suspension's springs and dampers to cope with the roughly 80 pounds of extra weight the convertible carries over the coupe.

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Like with the coupe, a 6.2-liter LT2 V8 engine powers the Corvette convertible. The naturally aspirated powerplant makes 495 horsepower and 470 pound-feet of torque when an optional performance exhaust system is installed. Without the exhaust, output numbers drop to 490 hp and 465 lb-ft. Then engine works with the aforementioned Tremec eight-speed dual-clutch transmission, which is the only gearbox that'll be offered on the C8 Corvette. Sorry, manual fans.

Heading inside, the Chevrolet Infotainment 3 Plus system with an 8-inch touchscreen comes standard to control features including a 10-speaker Bose sound setup, Apple CarPlay, Android Auto, a 4G LTE Wi-Fi hotspot and Bluetooth connectivity. Audiophiles will also be able to equip a punchier, 14-speaker Bose Performance Series audio system.

The 2020 Corvette convertible will go into production early next year.

Jon Wong/Roadshow

The 2020 Chevrolet Corvette Stingray convertible will head into production early next year and will be offered in 1LT, 2LT and 3LT trims. For select international markets, right-hand-drive versions of the convertible will arrive a bit later. Here in the US, the base 1LT model will begin at $67,495, which is a $7,500 premium over the entry-level Corvette coupe's $59,995 starting price.

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2019-10-03 19:00:00Z
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Pepsi's stock jumps 3% as higher advertising spending fuels sales growth and earnings beat - CNBC

A woman grabs a bottle of Diet Pepsi in Atlanta, Georgia.

Chris Rank | Bloomberg | Getty Images

PepsiCo on Thursday announced quarterly earnings and revenue that topped expectations, as its increased spending on advertising and marketing paid off for brands like Gatorade.

Shares of the food and beverage giant jumped 3% in premarket trading.

"Given our performance year-to-date, we now expect to meet or exceed our full-year organic revenue growth target of 4%," CEO Ramon Laguarta said in a statement.

The company reaffirmed its earnings outlook for fiscal 2019. It expects adjusted earnings per share, assuming constant foreign currency exchange rates, to decline by 1%.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $1.56, adjusted, vs. $1.50 expected
• Revenue: $17.19 billion vs. $16.93 billion expected

Pepsi reported fiscal third quarter net income of $2.1 billion, or $1.49 per share, down from $2.5 billion, or $1.75 per share, a year earlier. The company's strategy for sales growth includes investing more on marketing and advertising its products.

Excluding the impact of foreign exchange, restructuring charges and other items, Pepsi earned $1.56 per share, topping the $1.50 per share expected by analysts surveyed by Refinitiv.

Net sales rose 4.3% to $17.19 billion, topping expectations of $16.93 billion.

Frito Lay North America, which includes brands like Cheetos and Doritos, saw revenue growth of 5.5%. Pepsi has been expanding its snack lineup with healthier options, through brands like Bare and Off the Eaten Path. Revenue growth from those healthier snacks and well-known chip brands helped offset the double-digit sales declines of Sabra hummus and guacamole dips. Pepsi owns a 50% stake of the hummus maker through a joint venture with Strauss Group.

Its North American beverage business also performed well, with 3.5% revenue growth. Gatorade improved its market share and saw positive net revenue growth during the quarter. The brand's no-sugar line, Gatorade Zero, which launched in May 2018, surpassed a half-billion dollars in retail sales.

Bubly, which the company expects will be one of its next billion dollar brands, is continuing to gain market share in the flavored sparkling water category against competitors like La Croix.

Pepsi's organic revenue also grew by 4.3% during the quarter.

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2019-10-03 10:45:47Z
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PepsiCo, Constellation Brands, Costco earnings — What to know in markets Thursday - Yahoo Finance

Markets have been off to a rocky start to kick off October and the fourth quarter. Three key earning reports — beverage giant PepsiCo (PEP), beer brand Constellation Brands (STZ) and big-box retailer Costco (COST) — could help boost stocks Thursday.

Ahead of the opening bell, PepsiCo and Constellation Brands take the spotlight.

Analysts are predicting that PepsiCo’s Frito-Lay North America business strength continued in the third quarter. Snacks have been the bright spot for the beverage giant over recent quarters. Though the beverage business has been underperforming snacks, analysts expect the North American beverages segment to show a bit of improvement. Investors will be paying close attention to full-year earnings and revenue guidance.

PepsiCo is expected to report adjusted earnings of $1.50 per share on $16.93 billion in sales, according to analysts polled by Bloomberg. Organic sales are projected to have grown 3.4% during the quarter. Frito-Lay North America is expected to have risen 5%, while 1.75% growth is anticipated for Beverages North America.

Corona beer bottles seen on the store shelf (Photo by Igor Golovniov/SOPA Images/LightRocket via Getty Images)

Constellation Brands will release fiscal second-quarter results and is expected to report adjusted earnings of $2.63 per share on $2.34 billion of revenue. Last month, the company said its Q2 results would include a $38.5 million net loss from its investment in Canopy Growth (CGC). Nevertheless, Constellations beer sales will be the focal point for investors and analysts.

Second quarter beer net sales are estimated to have totaled $1.64 billion and shipment volume is expected to have reached 92.97 million cases, up from 82.1 million cases in the first quarter. The options market is implying a nearly 6% move in either direction following Constellations earnings report.

Meanwhile, after the closing bell, retail giant Costco will release its fiscal fourth quarter financial results. Costco’s strong same-store sales momentum is expected to have continued in Q4. Excluding fuel and the impact of foreign exchange, same-store sales in the U.S. are expected to have risen 5.4% and 5.7% in Canada and international markets, respectively, according to Bloomberg-compiled estimates. Furthermore, strong loyalty among customers likely boosted membership revenue by 5.3% during the quarter. The retailer is expected to report adjusted earnings of $2.54 per share on $47.70 billion in revenue.

The ongoing trade war and U.S. tariffs on Chinese goods continues to be a concern for retailers. Investors will be paying attention to any additional commentary regarding the tariffs. Costco has been crushing its competitors. Shares have skyrocketed a whopping 40% this year, while Walmart (WMT) jumped 26%, and BJ’s Wholesale Club (BJ) rose 12% in the same time period.

Yahoo Finance All Markets Summit

—

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

More from Heidi:

• Nestlé-owned Sweet Earth launches plant-based Awesome Burger

• Beyond Meat vs. Impossible Foods: Burger nutrition showdown

• McDonald's enters the chicken sandwich wars — and it's no Popeyes

Read the latest stocks and stock market news from Yahoo Finance

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2019-10-03 09:49:00Z
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Asian stocks slide as U.S. tariffs on EU fan growth worries - Investing.com

© Reuters. FILE PHOTO: The German share price index DAX graph at the stock exchange in Frankfurt

By Karin Strohecker

LONDON (Reuters) - World stocks hovered near four-week lows on Thursday and yields on major benchmark bonds slipped after Washington moved to impose new tariffs on European goods, fuelling fears about global growth and dousing risk appetite.

MSCI's index of world stocks () slipped 0.1%, with Asian shares plunging. Japan's Nikkei stock index () closing down 2%, its biggest one-day decline since Aug. 26.

However, European stocks eked out small gains after suffering their worst day since last December on Wednesday, when the U.S. got the go-ahead to impose tariffs on $7.5 billion of European goods.

Washington will enact 10% tariffs on Airbus (PA:) planes and 25% duties on French wine, Scotch and Irish whiskies and cheese from across the continent as punishment for illegal EU subsidies to Airbus.

But a reduction in the initial list propped up some sectors with the pan-regional STOXX 600 index () up 0.2%, torn between falls in financials and gains in luxury goods stocks. France's CAC index () rose 0.7% while Britain's FTSE 100 () fell 0.5%. German bourses - a weather vane for exports - were closed for a national holiday.

The latest U.S.-European trade tensions added to fears over the standoff between Washington and Beijing, which has cast a shadow over global growth prospects. Earlier in the week, disappointing data on U.S. manufacturing and the jobs market suggested the trade war with China had damaged the world's largest economy.

"The big question for a lot of folks is whether this is the third slowdown since the financial crisis or are we now heading for a global recession," said Anujeet Sareen, a fixed income portfolio manager and global macro strategist for Brandywine Global. "The wild card in the pack is always Donald Trump and whatever he tweets next."

U.S. stock futures () () indicated 0.4% higher, after shares fell the most in nearly six weeks on Wednesday. All three major New York share indexes lost more than 1.5%.

"Risk aversion is broadly on the rise and that has been triggered by the weakness in U.S. manufacturing ISM data earlier this week," said Manuel Oliveri, an FX strategist at Credit Agricole (PA:) in London.

"The outperformance of the U.S. economy compared to other major economies has held the dollar and other risky assets up but that has changed this week."

The flight to safety saw yields on two-year U.S. Treasury yields () slip to 1.4680%, nearing a two-year low of 1.4280%. Adding to pressure on yields was a weak U.S. jobs report, boosting expectations the Federal Reserve will cut interest rates this month.

Traders see a 72.8% chance the Fed will cut rates by 25 basis points to 1.75%-2.00% in October, up from 39.6% on Monday, according to CME Group's FedWatch tool.

Bets on a rate cut could rise further if a U.S. non-farm payrolls report on Friday shows weakness in the labor market.

Government bond yields in safe-haven Germany () fell for the first time in over a week.

In currency markets, the dollar dipped to one-week lows against the euro and yen. The greenback crossed 107 Japanese yen and touched a week low of 106.95 yen before recovering some ground. It fell to $1.0973 per euro (). The () slipped 0.1%.

Meanwhile, sterling was flat at $1.2306 as investors waited for a European Union response to Britain's latest Brexit offer, which Prime Minister Boris Johnson offered on Wednesday.

So far, the last-ditch Brexit proposal has received a cool reception. One senior EU official said it "can't fly" because it was an unworkable move backwards that left Britain and the EU far apart.

Brent crude () was flat at $57.84 per barrel. Energy traders are worried about a slowing global economy, an over-supplied market and geopolitical friction in the Middle East.

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2019-10-03 06:57:00Z
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Tesla's Model Y: This Could Be The Company's Most Profitable Vehicle - Seeking Alpha

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Tesla's Model Y: This Could Be The Company's Most Profitable Vehicle  Seeking AlphaView full coverage on Google News
https://seekingalpha.com/article/4294721-teslas-model-y-companys-profitable-vehicle

2019-10-03 05:07:00Z
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