Company news in brief

Qantas to cut 6 000 jobs

Qantas Airways Ltd said it is axing at least 20% of its workforce and plans to raise up to US$1.30 billion of equity as part of drastic measures in response to the coronavirus crisis.

The Australian airline also said it will ground 100 aircraft for up to 12 months and some for longer, as well as retire its six-strong remaining Boeing Co 747 fleet immediately, six months ahead of schedule.

"We have to position ourselves for several years when revenue will be much lower," Qantas chief executive Alan Joyce said in a statement.

Australian officials have said the country is unlikely to open to international travellers until next year, although they will consider relaxing entry rules for students and other long-term visitors.

Qantas said it will cut at least 6 000 positions among its 29 000 employees, while another 15 000 staff would remain stood down temporarily, particularly those associated with international operations, until more flying returns. – Nampa/Reuters

BlackBerry quarterly revenue falls

BlackBerry Ltd reported quarterly revenue below Wall Street estimates on Wednesday, as demand for its QNX software used in cars was hit by the Covid-19 pandemic that severely bruised the auto industry.

US listed shares of the Canadian company, which sells security software to companies and governments as well as infotainment software to carmakers, were down about 3% after the bell.

Coronavirus related job losses and shuttered dealerships during lockdowns led to a sharp decline in demand for cars. Light vehicle sales in the United States, among BlackBerry's biggest markets, fell nearly 27% in March from a month earlier.

"We're starting to see signs of recovery in the auto sector, evidenced by the reopening of the production facilities," chief executive John Chen said in a call with analysts, adding the company expects a "slow and gradual recovery for QNX" this year.

The company posted a surprise profit as it put a tight lid on costs by slashing marketing and related costs by US$31 million in the quarter. Adjusted operating expense fell 22.7% to US$150 million. – Nampa/Reuters

Retailers welcome back NYC shoppers

Upscale retailers including Nordstrom Inc, privately-owned Saks Fifth Avenue and Jeweler Tiffany & Co, reopened their large New York City flagship locations with reassuring signage and sanitizer stands to calm shoppers worried about the coronavirus pandemic.

Cheery store associates, all donning masks, were at the ready, eager to answer questions as upbeat music played in the background.

But curbing the spread of coronavirus is not the only challenge the retailers will face in coming weeks as the most populous and hardest-hit city in the United States reopens, experts said.

Top luxury brands including Chanel, Louis Vuitton and Gucci have substantially increased prices on some products to protect margins.

Many non-essential retailers have pulled annual forecasts amid the virus outbreak, unsure of how much people will want to spend on things like toys, apparel and accessories, as well as home improvement. – Nampa/Reuters

BP cuts its oil prices

When BP slashed its long-term oil price outlook last week, prospects in Canada and Angola were rendered worthless, company sources and analysts said, exposing broader risks the industry faces as the world pivots to low-carbon energy.

The US$17.5 billion write-down, part of chief executive Bernard Looney's drive to wean BP off fossil fuel, was the biggest the London-based company booked since the aftermath of the 2010 Deepwater Horizon disaster.

BP lowered its long-term oil price outlook from about US$70 a barrel to US$55, slashing the value of its US$14.2 billion early-stage exploration portfolio by two thirds. It also wrote down US$8 billion to US$11 billion in the value of producing assets.

BP did not detail which assets were rendered uneconomical by the price adjustment, but company sources said they included three areas, including resources in Canadian oil sands and ultra-deep-water wells off Angola, which involve high costs.

BP holds interests in three oil sands lease areas through the Sunrise Oil Sands project with Husky Energy, the Terre de Grace partnership with Value Creation and the Pike Oil Sands project with Canadian National Resources. – Nampa/Reuters

Evolution Gaming offers to buy NetEnt

Sweden's Evolution Gaming Group AB said it has offered to buy NetEnt AB for 19.6 billion Swedish crowns (US$2.12 billion) in stock to broaden its slate of casino games and increase earnings through cost savings.

The offer of 79.93 crowns per share represents a premium of 43% over NetEnt's closing price on Tuesday. NetEnt's board of directors have recommended the offer to its shareholders.

NetEnt shareholders will get 0.1306 Evolution shares for each share they own. Several large NetEnt shareholders, holding about 45% of the company, have undertaken to accept the offer.

"Evolution's position within Live Casino combined with NetEnt's position within online slots will create a company well positioned to take significant market shares," NetEnt Chairman Mathias Hedlund said in a statement.

Evolution expects the deal result in annual cost savings of about 30 million euros (US$34 million) and to have a positive effect on earnings per share in 2021.

Both Evolution and NetEnt develop and license casino games such as online slot machines and roulette games. – Nampa/Reuters