Connect with us

Business

Ford records $8.2 billion fourth-quarter gain from Rivian investment

Published

 on

Ford Motor Co said on Tuesday its fourth-quarter results would include an $8.2 billion gain on its investment in Rivian Automotive Inc, following the electric-vehicle maker’s blockbuster market debut in November.

Rivian had soared as much as 53% to cross $100 billion in the biggest initial public offering of 2021, but the company’s shares have dropped over 27% since then.

The stock closed 8.5% lower on Tuesday after hitting its weakest since the IPO amid a broader tech selloff on Wall Street.

Ford, an early investor in Rivian, currently owns about 12% of the California-based company and has itself been racing toward electrification in a shift away from traditional gasoline-powered cars as demand for green transport surges.

It has pledged to invest more than $30 billion on EVs by 2030.

In 2019, the 118-year-old Detroit automaker invested $500 million in Rivian, with plans to use the EV maker’s platform to build a new Ford-branded electric vehicle, but the companies dropped those plans in 2021.

Ford, which is reporting its fourth-quarter results on Feb. 3, also said on Tuesday that it would reclassify its $900 million first-quarter 2021 non-cash gain on the Rivian investment as a special item.

The reclassification will change the automaker’s full-year adjusted earnings before interest and taxes (EBIT) guidance that was previously forecast between $10.5 billion and $11.5 billion including the gain.

Ford also said it would record about $1.7 billion in costs associated with buying back and redeeming more than $7.6 billion in high-cost debt in the fourth quarter.

It will also mark a non-cash gain of about $3.5 billion in the fourth quarter and $3.9 billion for the full year related to the remeasurement of its global pension and other post-retirement employee benefits.

Ford also said it would report a $3.6 billion non-cash benefit, mostly due to changes in its global tax structure.

(Reporting by Aishwarya Nair in Bengaluru; Editing by Devika Syamnath)

Business

World's fastest passenger jet goes supersonic in tests – CNN

Published

 on


Adblock test (Why?)



Source link

Continue Reading

Business

YYJ delays: RCMP called to Victoria International Airport | CTV News – CTV News VI

Published

 on


Travellers who have a flight planned at Victoria International Airport (YYJ) on Tuesday are being warned of travel disruptions due to police activity.

Sidney/North Saanich RCMP say the airport was closed after a suspicious package was discovered around 1:30 p.m.

Cpl. Andres Sanchez of the Sidney/North Saanich RCMP says that the airport was closed to all incoming and outgoing flights “out of an abundance of caution.”

He said the airport will remain closed until police “can be sure it is safe for the public to travel.”

‘INCENDIARY DEVICE’

“The package was located at the departures/check-in [area], so it was brought in by a passenger,” said Sanchez Tuesday afternoon.

The package was flagged by Canadian Air Transport Security Authority (CATSA) staff who spotted what appeared to be an “incendiary device” within a bag, he said.

“CATSA employees performed the checks that you normally do at a departure situation at the airport,” he said.

“They scanned the bag and found there were items inside that could be of a dangerous nature and at that point police were called to the scene to investigate further,” he said.

Mounties say a specialized RCMP team has been called in from the mainland to remove the bag from the premises and to “ensure the package is dealt with in a safe manner.”

PASSENGER UNDER INVESTIGATION

Sanchez says the individual who brought the bag is under investigation, but it’s unclear if any criminal charges will be recommended yet.

“Again, because we don’t know what’s in that bag we can’t speak further on that,” he said.

In the meantime, people are asked to avoid the airport for the next few hours, according to RCMP spokesperson Sgt. Chris Manseau.

Around 4:20 p.m., the airport said all scheduled commercial flights for the next two hours were cancelled.

The airport is working with airlines to keep them updated on the status of flights.

Police say they hope the airport will be able to reopen Tuesday night, but it’s uncertain how long the investigation at the property will take.

Travellers should check the YYJ website for the latest updates on their flights, according to the airport. 

Adblock test (Why?)



Source link

Continue Reading

Business

​Scotia hikes dividend, smashes Q2 profit estimates – BNN

Published

 on


Columnist image

Bank of Nova Scotia opened earnings season for Canada’s Big Six on Wednesday with a beat and a dividend hike as profit climbed in all its major divisions other than capital markets.

Scotia said its net income in the fiscal second quarter, which ended April 30, rose to $2.75 billion from $2.46 billion a year earlier. On an adjusted basis, Scotia earned $2.18 per share; the average estimate among analysts tracked by Bloomberg was for $1.97 in adjusted per-share earnings.

The bank also announced its quarterly dividend will rise to $1.03 per share from $1.00, effective July 27.

“Continued loan growth of 13 per cent, an improving net interest margin, strong customer balance sheets, combined with prudent expense management, positions the Bank well to grow its earnings,” said Brian Porter, Scotia’s president and chief executive officer, in a release.

Profit in Scotia’s core Canadian banking division soared 27 per cent year-over-year to $1.18 billion in the latest quarter. Credit quality was a swing factor compared to a year earlier, as Scotia released $12 million from the unit’s provisions for loan losses in the most recent quarter; a year earlier, it booked $145 million in new provisions for loans that could go bad.

Scotia said it had an average of $271.8 billion in residential mortgages on its Canadian loan book during the fiscal second quarter, up almost three per cent from the prior quarter.

Growth in Scotia’s international division was even more pronounced, as net income surged 44 per cent year-over-year to $605 million as provisions for loan losses fell and revenue climbed.

Scotia’s Global Banking and Markets division was a profit drag, as net income slumped six per cent year-over-year to $488 million, which the bank attributed to higher non-interest expenses and lower non-interest income.

In a report to clients after the results were released, Barclays Analyst John Aiken said he doesn’t think Scotia will be an outlier with the profit slump in its capital markets business.

However, Aiken did flag that the drop in Scotia’s Common Equity Tier 1 capital ratio to 11.6 per cent from 12.0 per cent in the previous quarter might not sit well with investors.

“The only real knock on the results will likely be Scotia’s lower-than-peer regulatory ratio, which was drawn down again from share repurchases. While we believe that [Scotia] is heading towards a much more efficient capital level, the market does not like outliers, particularly where capital and an uncertain outlook is concerned.”

Adblock test (Why?)



Source link

Continue Reading

Trending