COMPANY NEWS IN BRIEF

Tesla's profit sets up Tesla Inc on Wednesday posted a second-quarter profit as cost cuts and strong deliveries helped offset coronavirus-related factory shutdowns, sending its stock up 4.4% in after-hours trading and clearing a hurdle that could lead to the electric carmaker's inclusion in the S&P 500 index.Tesla said it earned net income of US$104 million from April to June, or US$0.50 per share, marking the first time the company has posted a profit for four straight quarters, a condition for it to be considered for the stock index of the largest US companies.The performance is a major accomplishment for chief executive Elon Musk, whose mission of leading the global auto industry into an electric future has frequently been questioned by investors who doubted Tesla's viability.Its shares have gained more than 500% over the past year. Many analysts believe the rally has been fuelled in part by expectations of Tesla's imminent inclusion in the stock index, which would unleash a flood of demand for shares.Musk on a conference call on Wednesday said Tesla would prioritize growth over profit going forward and focus on making its vehicles more affordable. – Nampa/ReutersMicrosoft posts first growth Microsoft Corp's flagship cloud computing business Azure reported quarterly sales growth of under 50% for the first time ever on Wednesday, sending the tech giant's shares down 2%.Revenue in Microsoft's Intelligent Cloud segment rose 17% to US$13.4 billion, with 47% growth in the Azure component, which includes essential computing and storage services. Analysts on average had expected cloud revenue of US$13.09 billion in the fourth quarter ended June 30, according to IBES data from Refinitiv.Azure's growth is the most direct measure of performance against top cloud rival Amazon.com Inc's Amazon Web Services, as Microsoft does not break out Azure's revenue by dollar amount. AWS posted revenue growth of 33% to US$10.2 billion, which analysts believe exceeds Azure's total, for the quarter ended March 31.Beyond Azure, Microsoft's results showed how the novel coronavirus is both helping and hurting Microsoft.Businesses are investing in cloud technology for remote work, and the video game Minecraft scored a record 132 million monthly active users as families worked and played from home. But Microsoft's forecast for some versions of its Office software slightly missed expectations because of weak sales to struggling small and mid-sized businesses. – Nampa/ReutersOCBC seeks supervision Singapore bank OCBC is seeking a court-appointed supervisor to manage shipping firm Xihe Holdings Pte Ltd and four of its subsidiaries, four sources with knowledge of the court filing said.Xihe Holdings is part of the troubled Lim family business empire, which also includes oil trader Hin Leong Trading and fleet manager Ocean Tankers (Pte) Ltd, both of which were placed under court-appointed supervisors earlier this year.Hin Leong is seeking to restructure billions of dollars of debt after the oil price crash revealed a massive, years long fraud at the once fabled trading house. OCBC is owed US$250 million, making it Hin Leong's fourth biggest secured creditor, according to a presentation by Hin Leong to lenders in April.Xihe Holdings, owned by Hin Leong founder Lim Oon Kuin, his son Evan Lim Chee Meng and daughter Lim Huey Ching, controls a shipping fleet that ranges from coastal barges to very large crude carriers (VLCCs).OCBC wants a court-appointed manager to run Xihe to maximise its chances of recouping some of the money it is owed. The bank wants to avoid the risk of other creditors trying to sell assets belonging to Xihe and its subsidiaries in a fire-sale, one of the sources said. – Nampa/ReutersChipotle beats quarterly estimates Chipotle Mexican Grill Inc beat Wall Street expectations for second-quarter earnings on Wednesday, as soaring digital sales helped it recover amid the coronavirus crisis and continue the performance that boosted its share price 40% so far this year.Digital sales for the quarter - including customers who order ahead through Chipotle's mobile app to pick up in special drive-thru "Chipotlanes" - grew 216% to nearly 61% of total sales.Overall comparable sales were 9.8% lower for the quarter ended June 30 but have turned positive, up 6.4% so far in July. In the third quarter, margins and earnings per share will likely remain bumpy, executives said during a conference call.With more Americans staying home due to the coronavirus health crisis, Chipotle has relied heavily on online orders in recent weeks.Shares of the Mexican fast-casual chain, which features bowls and burritos, fell slightly in after-market trading but are still 40% higher year-to-date, closing at US$1,185.27 on Wednesday. – Nampa/ReutersCarnival's to extend suspensionsCarnival Corp's Princess Cruises said it would extend the suspension of select voyages through Dec. 15 as it looks to contain the spread of the novel coronavirus.Princess Cruises also said all cruises sailing in and out of Australia on select vessels have been suspended through Oct. 31.The pandemic has forced cruise companies to raise billions in debt to stay afloat, after several ships, including some owned by Carnival's Princess Cruises, became coronavirus hotspots.Last week, the US Centers for Disease Control and Prevention (CDC) on Thursday extended its no-sail order for all cruise ships through September end, taking the number of days cruise operators will have paused operations to 200.However, another Carnival unit, Germany-based AIDA Cruises, said earlier this month it would resume sailing operations in August, introducing a variety of coronavirus preventive measures to complement existing health and hygiene standards. – Nampa/Reuters

COMPANY NEWS IN BRIEF

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