Apple doubles quarterly profits to $11.6bn (£7.2bn)

Apple has reported its profits almost doubled in the first three months of the year.

Apple said its net profit came in at $11.6bn (£7.2bn), up from $6bn in the same period last year and much better than had been expected.

The technology giant sold 35 million iPhones in the quarter, which was also almost double the level from a year ago.

Apple shares rose more than 7% to $601 in after-hours trading.

To put its results in perspective, Apple’s profits are now more than Google’s quarterly revenues of $10.65bn.

Microsoft, the world’s largest software firm, has quarterly revenues of about $17bn.

Google and Microsoft make Android and Windows Phone respectively, which are rivals to Apple’s iOS platform.
‘Blowout quarter’

"Apple had a blowout quarter," said JJ Kinahan, a strategist at TD Ameritrade. "There were already high expectations and they blew the expectations away."
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Apple sold 11.8 million iPads, 150% more than the same period last year.

Chief executive Tim Cook, speaking on the conference call, said that almost 67 million iPads had now been sold – it took the company 24 years to sell as many Mac computers and three years to sell that many iPhones.

"The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver," he said.

The strong results followed a 13% fall in its share price in the past few weeks.

Some analysts had predicted that iPhone sales would be weak, suggesting that phone companies had reined in their sales.

"We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter," said Mr Cook.

Apple now has $110bn in cash. In March, the tech giant said it would use its cash to start paying a dividend to shareholders and to buy back some of its shares.

It expects to use $45bn over the next three years.

Apple’s shares recently touched a high of $644, surpassing $600bn in market value and affirming its position as the world’s most valuable firm.

The iPhone maker’s shares were worth as little as $3.19 in 1997, when it faced the possibility of bankruptcy.

source: bbc.co.uk

HSBC ‘to cut 2,000 staff in UK’

Banking giant HSBC is set to announce 2,000 job losses in the UK on Thursday as part of its global cost-cutting plans, reports say.

The bank, the biggest in Europe, employs more than 50,000 people in its British operations.

Its chief executive, Stuart Gulliver, has already said it will shed 30,000 jobs worldwide by 2013 as it looks to save $3.5bn worth of annual costs.

HSBC has declined to comment on the reports.

Together, the job cuts worldwide amount to about 10% of HSBC’s total global workforce, although the company has stressed it will also be recruiting staff by 2013.

In contrast, the UK job cuts, if correct, would amount to only about 4% of its British workforce.

Last year, the bank cut 7,000 jobs worldwide, leaving it with about 288,000 employees.

source: bbc.co.uk

Motor insurance costs fell in the first three months of the year after a period of rising premiums, the AA has said.

The cost of comprehensive car insurance dropped by 1.1% to £1,132 at the end of March, based on the cheapest premiums from a range of employers.

Although this was 7.7% higher than a year ago, this annual increase has slowed.

Drivers aged between 17 and 22 saw premiums fall by nearly 1% over the first quarter of the year.

This group has seen the cost of insuring their vehicles increase sharply in recent years.

However, the AA said that falling costs for drivers might not last, especially when gender discrimination rule changes came into force at the end of the year.

"I cannot see this drop in premiums being sustainable for long," said Simon Douglas, director of AA Insurance.

"My fear is that if prices do continue to drop, we will see a repeat of 2009, when industry losses led to premiums suddenly rocketing up following a long period of little movement."

The average of all motor insurance quotes changed relatively little in the first three months of the year, the AA said.

Scott Kelly, head of car insurance at price comparison site Gocompare.com, said: "There is currently a huge difference in premiums with insurers taking different positions on different types of drivers."

source: bbc.co.uk

South Korea LG Electronics turns to profit in 2012

South Korea’s LG Electronics has returned to profit in the first three months of 2012 after two straight loss-making quarters.

Higher television and handset sales pushed LG’s first-quarter net profit to 242.5bn won ($213m; £132m) compared with a loss of 15.8bn won a year ago.

Profits at the world’s second-largest television maker beat analysts’ expectations.

LG has been facing competition from Chinese television manufacturers.

The company said the turnaround was because of innovations in key business units.

Analysts said LG had done well to focus on high-end products.

"It’s clearly benefiting from new product releases in the high-end sector with 3D sets and gaining market share from struggling Japanese rivals," said Kim Ji-san, an analyst at Kiwoom Securities.

LG Electronics reported net losses of 112bn won and 414bn won in the fourth and third quarters of 2011, respectively.

LG’s turnaround comes even as its affiliate panel maker, LG Display, continues to report losses.

LG Display recently reported its sixth consecutive quarterly loss of 178bn won.

LG owns a 38% stake in LG Display.

source: bbc.co.uk

EU Commission proposes 6.8% budget increase for 2013

The European Commission has called for a 6.8% rise in the EU’s budget for 2013, saying investment is "desperately needed" to revive growth.

The proposals will be a starting point for negotiations with the EU’s 27 national governments and the Euro MPs.

Some EU members, including the UK, have consistently urged the Commission to scale down its spending plans.

But the Commission says it has to fund previously agreed commitments. It says EU staff posts will not be increased.

Under the Commission plan the budget total is set at 138bn euros (£113bn; $182bn).

EU Budget Commissioner Janusz Lewandowski said "there is a desperate call for investment" in Europe’s poorer regions.

He said investment expenditure was the only budget area that would be expanded.

For the first time since European integration began in 1957 the trend of growing the EU administration would be halted, he said.

The Commission drafts EU laws, which then have to be agreed with the member states’ governments and European Parliament in Strasbourg.
UK criticism

The leader of the British Conservatives in Strasbourg, Martin Callanan MEP, called the Commission plan "out of touch with the real world".

The BBC’s Nigel Cassidy says the Commission has to pay for a string of long-term projects, such as infrastructure and research programmes, that it is legally obliged to cover.

The Commission will risk accusations of double standards, as it has been leading calls for budget discipline throughout Europe, our correspondent adds.

The draft budget earmarks 62.5bn euros to "job friendly growth" in Europe, of which 49bn euros is for structural and cohesion funds – investment in the EU’s least developed regions.

The budget for research programmes is set at 9bn euros.

In 2012 the EU budget was 129.1bn euros, a 1.9% increase on 2011.

The largest allocation – 45.9% – was for the cohesion funds. Agriculture and fisheries took 40.8% of the budget, while EU administration costs amounted to 5.6%.
Hard bargaining

Richard Corbett, an adviser to European Council President Herman Van Rompuy, said payments for 2013 already agreed by ministers were now becoming due, as the EU works on a seven-year budget cycle.

Speaking on BBC Radio 4′s Today programme, he said negotiations were already under way for the next cycle, 2014-2020.

The goal is to avoid duplication by pooling Europe’s resources, so saving money nationally, Mr Corbett said.

"The usual pattern is that the Commission’s initial bid is pared down," he added, and noted that just 2% of public spending is at European level.

The UK government is thought to be among those who would oppose any increase.

"The UK has been consistent that at a time when member states are tightening their belts, the EU must show budgetary restraint," a British government spokesman in Brussels told Reuters news agency.

Poorer member states are meanwhile expected to lobby to keep the regional spending they say is essential for growth and creating jobs.

source: bbc.co.uk

Sports Direct sees ‘strong growth’

Sales increase at Sports Direct

Sports Direct has reported "strong growth" in quarterly sales and profit and said it is looking forward to a boost in trade from this summer’s landmark events.

Group sales for the nine weeks to 25 March were up 13.2% on the same period a year ago to £267.6m.

Gross profit was up 13.5% on the year to £99.8m.

The results were ahead of expectations, and shares in the retailer rose 3.2% in morning trading.

Founder – and Newcastle football club owner – Mike Ashley has been granted a "super stretch" shareholder bonus scheme, which gives him eight million shares in 2018 if certain performance criteria are met.

The firm had previously proposed a bonus of six million shares.

Sports Direct said it would seek shareholder approval for the bonus.

"The group has continued to deliver strong growth during February and March, outperforming management’s expectations," said chief executive Dave Forsey.

"We remain positive about the group’s outlook and are excited about the summer ahead with the Diamond Jubilee, Euro 2012 and the London Olympics."

source: bbc.co.uk

Employers can force retirement, court ruling suggests

A landmark ruling by the UK Supreme Court has outlined the powers that employers have to force workers to retire.

The court unanimously dismissed an appeal by a solicitor who was told to retire by a law firm just after his 65th birthday.

Leslie Seldon, a partner at the firm, wanted to continue working, but his request was turned down.

Part of his partnership deed was aimed at ensuring succession at the firm.

Mr Seldon argued that the decision to make him retire at Kent law firm Clarkson Wright and Jakes, which came before the default retirement age was abolished in October, was age discrimination.

However, his appeal was turned down, signalling that fairness between generations was a legitimate aim for employers.

‘Succession policy’ In this case, the employer argued that there were legitimate aims for its retirement policy. They included:

• Ensuring younger workers had the opportunity of becoming a partner after a reasonable period
• Facilitating planning by having a realistic long-term expectation as to when vacancies will arise
• Limiting the need to expel partners for poor performance

The court said that employers needed to give particular consideration to whether a "public interest" was served when telling anyone to retire.

"All businesses will now have to give careful consideration to what, if any, mandatory retirement rules can be justified in their particular business," the judgement said.

Yet this could include reasons of succession and letting workers go at a certain age because of poor performance, so not having to dismiss them.

However, it referred the case back to the employment tribunal to rule on whether 65 was an appropriate age for Mr Seldon to be told to go.

Me Seldon told the BBC that he "felt up to working". He said his motivation in taking the case was financial, with life expectancy increasing but the generosity of pensions falling.

Some clarity Niki Walker, partner at law firm Taylor Wessing, said that the ruling provided some clarity for employers.

"Employers can gain comfort from the fact that they can rely on employment being shared out among generations, and it is also legitimate to preserve the dignity of older workers by retiring them," she said.

"However, it is still not clear what is the correct age to retire somebody."

Legislation which came into force fully in October stops UK employers from compulsorily retiring workers once they reach the age of 65.

However, business groups have argued that employers have been left in limbo, fearful of asking workers aged 65 or over to leave the business for fear of being accused of ageism.

Age UK, which took on the case on behalf of Mr Seldon at the Supreme Court, welcomed the fact that the ruling made the law clearer and that people could not be retired just because of "stereotypes" of age.

Meanwhile, barrister Caspar Glyn QC said: "The case now provides a menu for the astute employer to follow, that means that whilst the gate has not been shut, it has been narrowed."

George Osborne may be able to afford a tax giveaway of more than £7bn in next month’s Budget and still meet his deficit reduction targets, after January’s public finances came in even better than expected.

Airport operator BAA posted a 17pc rise in full-year profit, helped by continued growth at London’s Heathrow airport, where passenger traffic is holding up despite global economic uncertainty.

Royal Dutch Shell has made a £992.4m takeover bid for Mozambique-focused Cove Energy, to expand its business in East Africa where it sees “significant potential” for gas production.