Electrical Equipment

Sony brush-off won’t end Dan Loeb campaign

6 Aug 2013

The Japanese group’s board has politely rejected the activist’s plan to spin off its entertainment arm. But Loeb isn’t backing down: he’s promising other value-creating ideas. Though his courteous tone is a departure from previous campaigns, Sony can’t afford to relax just yet.

Alcatel recovery still has a long way to go

30 Jul 2013

The French-U.S. telecom equipment maker reported strong results and a smart R&D deal with Qualcomm. Shares soared. A U.S. spending boom is allowing new boss Michel Combes to bask in a honeymoon of sorts. But it’s very early days for the group’s third turnaround CEO.

Patents hoarders aim for bigger slice of Apple pie

24 Jul 2013

Hon Hai earns a crust making iPhones and the like for brands that reap hefty rewards further up the supply chain. While sales are growing, manufacturers must fight workers, brand owners and consumers for a bigger share of value. Patents may be a way to wrestle something back.

Schneider has powerful chance of winning Invensys

12 Jul 2013

The French group has tentatively offered 3.3 bln stg for Invensys, the UK engineer chaired by veteran dealmaker Nigel Rudd. A counter-bid is possible: ABB, Emerson and GE could have a look. But the “for sale” sign has hung over Invensys for months and this is a pretty full price.

Olympus $1.2 bln share sale fails zoom-lens test

12 Jul 2013

Tapping investors to cut debt and expand its medical unit makes sense for the scandal-hit Japanese company. But only selling shares overseas is a slight on local shareholders who endured the dark days. Besides, a close-up view suggests Olympus’s finances were already on the mend.

Edward Hadas: Apple, hypocrisy and stakeholder tax

22 May 2013

Politicians are hypocrites when they complain about the cross-border tax strategies of Apple and other multinationals. But “hypocrisy is the tribute vice pays to virtue”. It’s high time that companies admit taxes on profit are fair payments for the help that governments give them.

Dan Loeb’s breakup plan deserves Sony’s ear

14 May 2013

The U.S. hedge fund manager wants the Japanese electronics giant to spin off its entertainment arm. Activists rarely prevail in Japan. But Loeb’s idea may have merit. In the spirit of the country’s economic renaissance, Sony should take him, and other shareholders, seriously.

Samsung cash injection still leaves Sharp short

6 Mar 2013

The Korean giant is investing $111 mln in its cash-strapped Japanese rival. In return it gets a 3 pct stake and locks in a supplier of liquid crystal displays. The vote of confidence is important for Sharp. But with $11 bln of net debt, it needs more fresh equity to pull through.

Weak yen makes Japanese electronics firms giddy

4 Feb 2013

Panasonic shares jumped 17 percent after losses were less bad than expected. Manufacturers have been so badly beaten up that even small changes in profitability have a big impact on expectations. Revenue is still shrinking, though. The recent rally is largely based on hope.

Philips: a credible recovery story at a full price

29 Jan 2013

The Dutch electronics giant reported solid results and is selling its home entertainment unit. This represents the latest evidence of a successful overhaul. But after a sustained rally, the stock looks richly priced - despite the promise of a brighter future in lighting and healthcare.

Brazil’s power troubles dim economic prospects

9 Jan 2013

A bad drought could require electricity rationing. Brazil is already battling weak investment and higher labor costs as it prepares to be a global sports host. The 2001 energy crisis sapped 2.6 points of GDP growth. Dilma Rousseff’s troubleshooting list is getting awfully long.

Review: How a maverick CEO exposed a scandal at Olympus

30 Nov 2012

Society needs whistle-blowers, but it’s hard, lonely work. Michael Woodford fought a $1.7 billion cover-up at the company he led - using grit, friends, the media, and a few foreign investors. Woodford’s prose may clunk. But his integrity is welcome in an age of corporate scandal.

Silicon Valley cash alone won’t salvage Sharp

14 Nov 2012

Even coming from Qualcomm and Intel, a $378 mln investment won’t help the ailing electronics group. It has net debt of $12 bln and is bleeding cash. The best hope is that the U.S. groups see potential in Sharp’s long-overdue restructuring.

Japan risks consumer electronics death spiral

2 Nov 2012

Panasonic, Sony and Sharp all suffered slumping demand for consumer gadgets. Though the economy is partly to blame, so are successful rivals like Apple and Samsung. The temptation may be to cut product development spending, but that could leave the trio ever further behind.

Time for Samsung to pay Galactic return to owners

26 Oct 2012

The smartphone giant’s stock has recovered some since losing to Apple in court. But for a company that seems to mint record earnings with every new Galaxy gizmo it launches, it still looks undervalued. Doling out some of its $27.7 bln in cash might help ease investor scepticism.

ASML pays up for tighter control of new technology

17 Oct 2012

The Dutch semiconductor-equipment maker will pay $2.5 bln, mostly in stock, to buy out U.S. partner Cymer. A 61 pct premium looks steep, and valuation details are scant. But synergies should follow. And ASML smoothes the shift to a new generation of chip technology.

Foxconn brawl reflects China’s economic challenges

24 Sep 2012

Reports of violence from one of the Apple supplier’s factories conjure up Western prison riots. That’s unfair, but 79,000 migrant workers, excess hours and dependence on a tough employer make a recipe for tension. It’s the dark side of supplying shiny gadgets to the world.

How many reais needed to screw in a light bulb?

12 Sep 2012

That’s what investors should ask about Brazilian President Rousseff’s plan to slash sky-high electric rates that are restraining economic growth. Power companies are being forced to shoulder most of the burden. Government can afford to pick up the tab on the next round of cuts.

Hon Hai cash not enough to restore Sharp’s edge

3 Sep 2012

The Taiwan company’s boss left Japan without a new deal for the 9.9 percent stake in Sharp he proposed buying in March. Sharp only has cash to last about six months. Without an overhaul or sale of its LCD and solar businesses, the electronics maker may struggle to stay afloat.

Alcatel kept on hold despite mobile data explosion

17 Jul 2012

Telecoms kit makers like Alcatel-Lucent and ZTE should benefit from a smartphone-driven explosion in mobile data. Yet crimped telcos are delaying network spending, and price competition remains fierce. Lousy finances, and ugly profit warnings, set an annoying ringtone.