Unfortunately, last quarter the postal service had more to post than just mail. While its $1.9 billion loss is down 40 percent from the same quarter last year, it shows that even with cost saving changes such as lessening benefit plans and a shrinking workforce, the posal service is still losing money.
In order to cut losses, the postal service is considering raising the price of postal service.
This post was based off of the article “Postal Service has $1.9 Billion Loss,” which was published in the Wall Street Journal on May 10.
Frank Amoroso, the chairman of Yahoo (YHOO) has resigned. He will continue to serve as chairman until June. Amoroso says that upon taking the position, he intended on only serving for one year. Over the past year, Yahoo’s profits have risen about 63 percent. The stock is currently valued at $25.10.
Amoroso’s replacement has not yet been announced. Yahoo has been making news in regards to the new CEO, Marissa Meyer’s contreversial plans to turn around the struggling Internet giant. Meyers has been with Yahoo since July 2012.
This post is based off of a Wall Street Journal article which can be found here: http://online.wsj.com/article/SB10001424127887323789704578445300650172158.html?mod=WSJ_hps_sections_management
JAB, an investment firm, has purchased D.E. Master Blenders for $9.8 billion. The firm already owns Caribu Coffee and Peet’s Coffee. JAB says that it has no plans to combine the coffee distributers and allows them to continue operating as seperate entities. JAB paid a 36 percent premium on D.E. Master Blenders’ stock price. The deal is being funded by roughly $4 billion in debt and $6 billion in equity. Last year, D.E. was the third largest coffee roasting sector in the world.
This post is a summary of an article read on Friday, April 12’s edition of the Wall Street Journal titled “JAB to Buy Coffee Maker for $10 billion.” This week, the author also read: “Microsoft Can’t Keep Up in a Mobile World” and “Five of the Most Profitable Tweets Ever.”
They say that you can’t get too much vitamin C. You can, however, pay too much for vitamin C. Two Chinese manufacturers were recently convicted of working together to price fix the vitamin C that they produce in China and sell in the United States. The companies, Hebei Welcome Pharmaceutical and North China Pharmaceutical Group Corp., admitted to the violation and were forced to pay $162 million in damages.
This case marked the first time Chinese companies have been on trial within the U.S. for alleged antitrust violations. Attorney William Issacson, who represented U.S. vitamin C buyers said, believes that this case will set an example.
“This verdict shows that companies in China are going to have to play by the same rules as everybody else,” he said.
The involved companies claimed the Chinese government forced them to fix the prices.
This article was based on an article published in the Wall Street Journal on March 14, 2013. It can be found online here. The author also read “Facebook Works to Incorporate Hashtag” and “Consumers Open Wallets, Save Less.”
In New York City, “I’d like a large Coke with that,” is about to become a thing of the past. On March 12, 2013, the Bloomberg Administration’s ban on sugary drinks larger than 16 oz will go into effect. Local business’s will be granted a three month grace period to adjust to the new legislation before a $200 fine is implemented for violators.
Local businesses are working to prepare for the ban. Brother Jimmy’s BBQ has ordered 2000 small glasses and movie theatres are organizing “buy one get one free” sales and other promotions. The general manager of Movieworld, Russell Levinson says that he is currently working with distributer Coca-Cola (KO) to figure out a complience plans. Convenience and grocery stores are not subject to the ban, but delis are. Deli owners are expecting to take some degree of a financial hit.
This is the summary of the article, “Soda Sellers Prep for Large-Drinks Ban” published in March 4, 2013’s Wall Street Journal. Other articles that the author found interesting included “HBSC Lifts Dividend” and “Cheap Oil Could Help Out Exxon.”
DreamWorks Animated SKG (DWA) ended its fourth quarter on a nightmarish note after taking a $165 million charge, resulting in an $82.7 million loss on the quarter’s $264.7 million in revenue. This translated to a 98 cent loss on each share, compared to the 29 cents per share gains that occured at the same time last year.
The misfortune of the Glendale, Calif.-based company can be attributed to the lackluster performance of its holiday movie, “Rise of the Guardians.” “Rise of the Guardians” was the company’s third lowest grossing computer animated film since 2004.
DreamWorks also disclosed that it will be laying off 17 percent of its workforce, or about 350 people in order to lower costs and bolster profit margins. The studio announced other cost cutting efforts, including a delay in the release of “Me and My Shadow,” which was expected to be out in March 2014.
DreamWorks is currently trading at $16.61 a share.
This post is a summary of “DreamWorks Animation Posts Loss on Big Charge” which was published by Wall Street Journal on February 26, 2013.
Other articles read in WSJ this week include:
“Macy’s Issues Upbeat Outlook”
“Is Twitter Really Worth $10 billion?”