A round-up of today's other business news in brief ...
Bank officials want talks on Nationwide
The Irish Bank Officials’ Association (IBOA) has requested urgent talks over the future of Irish Nationwide Building Society.
In a statement, the union’s general secretary Larry Broderick said “in light of the disturbing revelations in the society’s recent annual results, the union is anxious to meet the Minister for Finance Brian Lenihan to discuss the Government’s intentions for INBS”.
He said Irish Nationwide staff were “extremely concerned about the possible impacts on customers and on their own job security, terms and conditions, of potential write-offs revealed in the recent annual results”.
Heineken reports 1% fall in profits
Heineken, the world’s third-largest brewer, has reported a 1 per cent decline in first-quarter profit, as last year’s acquisition of Scottish Newcastle’s British operations coincided with a slump in beer sales.
Earnings before interest and tax were down in the high teens, the brewing giant revealed.
Consumption of the company’s more expensive brews, such as Heineken Premium Light, is falling in the US, UK and Spain as drinkers switch to cheaper brands and wholesalers reduce inventories. Heineken, which bought Cork’s Beamish Crawford brewery in October 2008, said it would concentrate on reducing its debt in 2009.
Property investors engage solicitor
Almost 100 investors in a delayed Indian property scheme have engaged solicitor Anthony Joyce to represent them as a group.
The group, which met on Tuesday evening in Citywest Hotel, is also investigating the possibility of appointing an Indian solicitor.
A total of 246 investors, the majority of whom are Irish, paid for apartments in the delayed Orchard View and Mountain View developments in Rudrapur, India, through Dublin-based property investment company Kuvera Ireland.
According to Kuvera Ireland, €3.5 million of the €8.9 million raised from investors was used for working capital and marketing, and only €5.4 million reached Indian developers of the scheme VG Buildtech.
Profits down at GlaxoSmithKline
GlaxoSmithKline said first-quarter profit fell even after currency gains helped offset losses from generic threats to five products.
Net income declined to £1.13 billion, from £1.31 billion, London-based Glaxo said. Earnings excluding some items gained to 26.3 pence per share, from 25.6 pence.
Five products that generated £586 million in first-quarter 2008 sales in the US all have faced cheaper competition there in the last year: antidepressants Wellbutrin XL and Paxil CR, the Imitrex migraine pill, epilepsy drug Lamictal and Requip for restless legs. – (Reuters)
Volvo AB to cut 1,543 jobs
Volvo AB, the world’s second-largest maker of heavy trucks, will cut an additional 1,543 jobs in response to falling demand.
The Gothenburg-based company will eliminate 655 jobs at its truck division, 125 in construction, 108 at its Penta boat-engine unit and 655 at its Powertrain engine parts subsidiary, Volvo said in a statement yesterday.
The truck firm is a separate company to Volvo cars.
The car firm is owned by Ford but has suffered its own problems and has been put up for sale by its US parent. – (Bloomberg)
