Japan’s House Foods Corp. (TSE:2810) is taking steps to expand its overseas business operations. The plans include bolstering its tofu business in the U.S. and franchising curry shops in China.

House Foods’ business in the U.S. generated sales of 4.7 billion yen (US$51.26 million) in the year ended March 2009. Some 70 per cent of that came from tofu sales, and the rest from the operation of curry restaurants and exports of curry mixes.

The company already has a large share of the U.S. market for tofu, but up until now has focused most of its energies on the West Coast.

Japanese automotive company Suzuki plans to relocate its motorcycle plant from Thailand to Indonesia in 2010, citing the huge market as one of its reasons.

“Suzuki originally wanted to develop (motorcycle industry) in Thailand but it later decided to switch to Indonesia,” PT Suzuki Indomobil Motor (SIM) President Director Yoshiji Terada said here on Wednesday. (antara.co.id)

The other reasons behind the company`s plan to relocate the plant were that Indonesia had large oil/gas, non-oil/non-gas potentials and high demand for transportation means, he said.
In addition to meeting domestic needs, PT SIM also exports its products to the Philippines.

“So far, we have exported 10,000 completely knocked down (CDK) motorcycles to the Philippines per month,” he said.

Suzuki would resume motorcycle exports to Thailand, Vietnam and Cambodia, he said adding nearly 90 percent of the exported motorcycles` components came from Indonesia.
“ASEAN is the target of our products,” he said.

Previously, Terada said the company would raise its investment in Indonesia by US$50 million to increase its production capacity by 40 percent next year.

The additional investment would enable the company to raise its production to 720,000 units from the current 500,000-600,000 units per year, he said.

Lenovo Group today reported results for its second fiscal quarter ended September 30, 2009, reaching its highest worldwide market share ever, lowest expense to revenue since the acquisition, while achieving a return to profitability. During the second quarter, Lenovo’s worldwide PC shipments grew 17 percent year-over-year. Comparatively, industry PC shipments increased 2.3 percent worldwide for the same period.

Consolidated sales for the second fiscal quarter decreased five percent year-over-year to US$4.1 billion, but grew 19 percent over the previous quarter. The Company’s gross profit for the second quarter declined 24 percent year-over-year, but grew 14 percent compared to the previous quarter, with gross margin at 10.6 percent.

With the strong volume growth and expense control efforts, the Company returned to profit in the second fiscal quarter. Operating profit was US$43 million (excluding restructuring costs/one-off items), a more than two-and-a-half times improvement over the first fiscal quarter operating profit of US$16 million. Pre-tax income was US$30 million (excluding restructuring costs/one-off items) compared to the Company’s breakeven first fiscal quarter (excluding restructuring costs/one-off items).

During the second fiscal quarter, Lenovo continued its previously announced worldwide restructuring program, designed to make the Company more cost competitive and operationally efficient. As a result of the restructuring, Lenovo expects to save approximately US$300 million on an annual run-rate basis. The Company incurred a restructuring cost of US$3 million in the second quarter.

The Company recorded one-off items representing the disposal gain of US$38 million of some investments as other income. 

The pre-tax income after taking into account of restructuring costs/one-off items was US$65 million for the second fiscal quarter. Profit attributable to equity holders for the quarter was US$53 million, an increase of more than double year-over-year, and compared to the Company’s first fiscal quarter’s loss attributable to equity holders of US$16 million.

Basic earnings per share for the second fiscal quarter was 0.59 US cent, or 4.57 HK cents. Net cash reserves as of September 30, 2009, totaled US$1.8 billion. The Board of Directors declared an interim dividend of 0.13 US cent, or 1.00 HK cent per share.

“Lenovo’s second quarter results showed that the Company has the right strategy
in place and is executing on that strategy. Our results are moving in the right direction and we are particularly pleased with our performance in China and in the transactional business model,” said Lenovo Chairman Liu Chuanzhi. “We are starting to see positive signs that the worldwide economy is improving, and we will continue to focus on our long-term goal of growing our business profitably worldwide. The strategy we have set in motion will continue to help us produce the appropriate results, as long as we keep executing as we are capable, and carefully managing
our costs.”

“In the last quarter, our share in the global market climbed to a historic high and we returned to profit. At the same time, our expenses-to-revenue ratio improved notably, reaching the best level since the acquisition of IBM’s PC division. These achievements bear witness to the clear strategies we set at the beginning of the year and our effective execution of those strategies,” said Yang Yuanqing, Lenovo CEO. “In the coming quarters, we will continue to reinforce our leadership in China, improve the sustainability and profitability of mature markets, seize growth opportunities in emerging markets and our transactional business, continue to strengthen cost structure and innovate with raising efficiency and customers’ needs in mind.  We will remain steadfast in executing our proven strategies so as to drive long-term growth of Lenovo.”

Lenovo Group today reported results for its second fiscal quarter ended September 30, 2009, reaching its highest worldwide market share ever, lowest expense to revenue since the acquisition, while achieving a return to profitability. During the second quarter, Lenovo’s worldwide PC shipments grew 17 percent year-over-year. Comparatively, industry PC shipments increased 2.3 percent worldwide for the same period.

Consolidated sales for the second fiscal quarter decreased five percent year-over-year to US$4.1 billion, but grew 19 percent over the previous quarter. The Company’s gross profit for the second quarter declined 24 percent year-over-year, but grew 14 percent compared to the previous quarter, with gross margin at 10.6 percent.

With the strong volume growth and expense control efforts, the Company returned to profit in the second fiscal quarter. Operating profit was US$43 million (excluding restructuring costs/one-off items), a more than two-and-a-half times improvement over the first fiscal quarter operating profit of US$16 million. Pre-tax income was US$30 million (excluding restructuring costs/one-off items) compared to the Company’s breakeven first fiscal quarter (excluding restructuring costs/one-off items).

During the second fiscal quarter, Lenovo continued its previously announced worldwide restructuring program, designed to make the Company more cost competitive and operationally efficient. As a result of the restructuring, Lenovo expects to save approximately US$300 million on an annual run-rate basis. The Company incurred a restructuring cost of US$3 million in the second quarter.

The Company recorded one-off items representing the disposal gain of US$38 million of some investments as other income. 

The pre-tax income after taking into account of restructuring costs/one-off items was US$65 million for the second fiscal quarter. Profit attributable to equity holders for the quarter was US$53 million, an increase of more than double year-over-year, and compared to the Company’s first fiscal quarter’s loss attributable to equity holders of US$16 million.

Basic earnings per share for the second fiscal quarter was 0.59 US cent, or 4.57 HK cents. Net cash reserves as of September 30, 2009, totaled US$1.8 billion. The Board of Directors declared an interim dividend of 0.13 US cent, or 1.00 HK cent per share.

“Lenovo’s second quarter results showed that the Company has the right strategy
in place and is executing on that strategy. Our results are moving in the right direction and we are particularly pleased with our performance in China and in the transactional business model,” said Lenovo Chairman Liu Chuanzhi. “We are starting to see positive signs that the worldwide economy is improving, and we will continue to focus on our long-term goal of growing our business profitably worldwide. The strategy we have set in motion will continue to help us produce the appropriate results, as long as we keep executing as we are capable, and carefully managing
our costs.”

“In the last quarter, our share in the global market climbed to a historic high and we returned to profit. At the same time, our expenses-to-revenue ratio improved notably, reaching the best level since the acquisition of IBM’s PC division. These achievements bear witness to the clear strategies we set at the beginning of the year and our effective execution of those strategies,” said Yang Yuanqing, Lenovo CEO. “In the coming quarters, we will continue to reinforce our leadership in China, improve the sustainability and profitability of mature markets, seize growth opportunities in emerging markets and our transactional business, continue to strengthen cost structure and innovate with raising efficiency and customers’ needs in mind.  We will remain steadfast in executing our proven strategies so as to drive long-term growth of Lenovo.”

A leading British renewable energy development company is planning to enter a partnership with a Taiwanese firm to further develop wind power in Taiwan, according to a recent newsletter published by the British Trade and Cultural Office (BTCO) in Taipei.

SeaEnergy PLC and Taiwan Generations Corporation (TGC) will sign a memorandum of understanding Oct. 27 to jointly develop offshore windfarm projects in Taiwan, the newsletter said.

“This joint project by SeaEnergy and TGC will be the first offshore windfarm collaboration between the U.K. and Taiwan, which also demonstrates the international and local business support for the government’s policy,” the BTCO said.

An offer by Sri Lanka’s Hayleys group to buy up all shares of a subsidiary, Hayleys MGT Knitting Mills, is priced too low, the latter said in a stock exchange filing. Hayleys spent 210 million rupees (US$1.8 million) to increase control of Hayleys MGT Knitting Mills by buying 6.9 million shares (a 14.1 per cent stake) held by National Development Bank in Hayleys MGT Knitting Mills on July 30, 2009.

The acquisition, for which Hayleys paid 30.25 rupees a share, increased its stake in the fabric maker to 55 per cent from 41 per cent. Hayleys also said that under share trading rules it had to make a mandatory offer to the shareholders of Hayleys MGT, to buy their equity shares in Hayleys MGT.

Hayleys subsequently offered to buy all remaining shares of Hayleys MGT held by remaining shareholders at a price of 30.27 rupees a share. But independent advice provided by Merchant Bank of Sri Lanka on the mandatory offer has found the price too low, Hayleys MGT said in a statement to the stock exchange.

There is widespread support across the world for changes in the way the global economy is run, although high food prices remain a more serious concern than the downturn, a new poll revealed Tuesday.

Ahead of a summit of G20 leaders in London on Thursday, the BBC World Service poll reveals 70 percent of the 29,913 people in 24 countries questioned think “major changes” are required to the international economic system.

Across the 15 countries polled which are part of the G20, 65 percent think major changes are required to the global economy and a further 62 percent believe similar change is required in their own country.

In all the nations polled, 62 percent said the downturn was negatively affecting them and their families at least “a fair amount”, while 31 percent said it had affected them a “great deal” — similar figures to a BBC World Service poll in mid-2008.

Yet the survey suggests high food costs were a more serious concern, even despite recent price falls, with 76 percent of families saying this was affecting them at least a fair amount. A total 47 percent said it affected them a great deal, down from 59 percent six months ago.

The respondents were roughly split between those who believed the downturn would last for more than two years (45 percent) and those who thought the global economy would recover faster (46 percent).

International polling firm GlobeScan conducted the survey face-to-face or by telephone between November 24 and February 27 in Australia, Brazil, Canada, Chile, China, Egypt, France, Germany, Ghana, India, Indonesia, Italy, Japan, Kenya, Mexico, Nigeria, the Philippines, Portugal, Russia, Spain, Turkey, Britain and the US.

The survey was also conducted in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama under one Central American grouping. (source : antara)

The rupiah weakened against the US dollar in the Jakarta interbank spot market early Wednesday as investors were more confidence in the greenback.

The Indonesian currency traded at Rp12,148/12,168 per US dollar, down 28 points from Rp12,120/12,130 in the market`s close a day earlier.

However, Edwin Sinaga, a money market observer, believed that the rupiah slump was still within the normal limit as almost all regional currencies plunged against the US dollar.

The rupiah fell because market players preferred to keep the greenback which tended to strengthen in the world money markets, despite the financial crisis in the US, he said.

The rupiah tumbled also because of unfavorable performance of Indonesia`s exports, he said.

He predicted that the rupiah would continue to fall in the afternoon and reach the level of Rp12,200 per US dollar.

However, the market`s negative pressure was still controllable and the rupiah fall was still rational, he said.

Sinaga said that market players also tended to ignore the bonds issued by the government and wanted to see the government`s measures to improve the economic performance.