Company news in brief

Pick n Pay warns of losses

Pieter Boone has stepped down as CEO of Pick n Pay, less than two and half-years into the role, after the board decided that a change in leadership was needed to get the retailer back "on the right trajectory".

Sean Summers, who was Pick n Pay CEO from 1999 to 2007, has returned to the role with immediate effect, with the goal of turning around the core business.

Pick n Pay, valued at about R17 billion on the JSE, flagged that it had swung into a loss in its half-year to 27 August, hit by increased competition, load shedding and a weak consumer economy.

In morning trade on Monday Pick n Pay's shares crashed almost 11% and have now lost more than 44% on a one-year basis.

Pick n Pay said in July, in a trading update covering the 16 weeks to 24 July and the first half of the 2024 financial year, that it faced abnormal costs totalling R610 million, compared to the almost R672 million in profit in its prior half-year.

All these costs meant it was likely to report a first-half loss "at the earnings, headline earnings and pro forma headline earnings level". – Fin24



Evergrande resumes Hong Kong trade

Shares of China Evergrande jumped as much as 42% in volatile trade yesterday, days after the embattled developer said its billionaire founder was being investigated over unspecified crimes.

Evergrande's stock was suspended last Thursday after a report that its chairman and founder had been placed under police surveillance.

The world's most indebted developer later said in a statement that Hui Ka Yan was being investigated.

The stock was last trading up 33% at HK$0.42, having lost around three-quarters of its value since August. – ReutersConnect



Boeing sets record production goal

Boeing plans to push production of its bestselling 737 narrowbody jet to a record of at least 57 per month by July 2025, reflecting rising orders and the company's recovery after the 737 MAX crisis, according to two sources with knowledge of the matter.

The goal would hit the planemaker's unmet target from several years ago, which was scuttled in 2019 when the MAX was grounded globally following two deadly plane crashes.

Both Boeing and its European rival Airbus have laid out ambitious ramp-up goals as air travel and aircraft sales rebound, with Airbus producing in-demand single aisle planes even faster than the US planemaker.

Boeing declined to comment.

The schedule targets 737 production to reach 42 jets a month by December 2023, affirming statements made by Boeing Commercial Airplanes head Stan Deal to Bloomberg TV in June.

From there, monthly 737 production - which includes the 737 MAX as well as earlier models used for military planes - is set to grow to 47.2 jets in June 2024 and 52.5 jets in December 2024 before hitting a steady rate of 57.7 aircraft per month in July 2025. – Reuters



Tesla misses delivery estimates

Tesla missed market estimates for third-quarter deliveries on Monday as planned upgrades at its factories to roll out a newer version of the Model 3 mass-market sedan forced production halts.

Some analysts believe the upgrades could spark a rebound in deliveries in the fourth quarter by allowing Tesla to refresh its line-up with models that could compete better with offerings from US rivals such as Ford and BYD in China.

Deliveries of the updated and higher-priced Model 3 compact sedan are expected to start in the fourth quarter, while a Cybertruck launch event is also planned later this year.

The electric-vehicle maker, which will report quarterly results on 18 October, handed over 435 059 vehicles in the three months to 30 September, down nearly 7% from the preceding quarter, but retained its target to deliver 1.8 million vehicles this year.

Tesla has also been cutting prices aggressively to counter the effect of a slowing EV market, while fending off competition from upstarts and legacy players. – Reuters