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CHICAGO, March 14 (Reuters) - U.S. airlines on Tuesday tried to reassure investors about the strength of travel demand, a day after United Airlines (UAL.O) stoked worries about the industry's pricing power. Even as executives in other sectors of the economy have warned of recession risks, airline chief executives until now have remained upbeat as consumer travel demand stayed strong. Delta reaffirmed its first-quarter outlook, saying travel demand is strong and getting stronger. American Airlines (AAL.O) CEO Robert Isom said the Texas-based carrier was enjoying "tremendous" demand. Airline ticket prices have gone up due to persistent capacity constraints and an unending thirst for travel after pandemic-related restrictions ended.

☆ Canada's Ritchie to pay special dividend to investors who back $7-bln IAA deal
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +1 min

March 7 (Reuters) - Canada's Ritchie Bros Auctioneers (RBA.TO) said on Tuesday it would pay a special dividend of $1.08 per share to its investors if they back its $7-billion deal for U.S. auto retailer IAA Inc (IAA.N). However, Ritchie's shareholders including Luxor Capital Group, Eminence Capital, Deep Field Asset Management and Janus Henderson Investors have opposed the deal. The latest move by Ritchie comes after proxy advisory firms Institutional Shareholder Services and Glass Lewis recommended that shareholders reject the deal, citing potential risks. read moreThe dividend will be paid subject to receipt of required shareholder approvals of the merger, Ritchie said adding that IAA shareholders will not be entitled to receive it. Reporting by Aishwarya Nair in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Caterpillar reaches tentative deal with union, averting possible strike
▼ + stars: | 2023-03-01 | by ( ) www.reuters.com time to read: +2 min

March 1 (Reuters) - Construction equipment maker Caterpillar Inc (CAT.N) said on Wednesday it reached a tentative six-year labor agreement with a union that represents workers at its four facilities, possibly fending off a strike. Union workers had threatened to strike for wage increases, improved safety measures and better healthcare benefits once the existing six-year labor contract expires. The United Auto Workers (UAW) said its negotiating team had reached the tentative agreement before the contract ends on March 1. "Members at four locals in Illinois and Pennsylvania will review the tentative agreement and vote at upcoming ratification meetings," the UAW said in a statement, without giving any other details. In January, union workers at the four Caterpillar facilities voted almost unanimously to authorize a strike, according to one local union's Facebook page.

☆ Airlines cancel over 1,300 U.S. flights as winter storm grips states
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +1 min

Feb 22 (Reuters) - Airlines canceled more than 1,300 flights in the United States on Wednesday as a strong winter storm makes its way through the western and central states. A total of 1,327 flights within, into and out of the United States were canceled by 12:30 p.m. ET, according to flight-tracking website FlightAware, which also showed 2,030 flights were delayed. Regional carrier SkyWest Inc (SKYW.O) led the cancellations with 312 flights, followed by low-cost carrier Southwest Airlines Co's (LUV.N) 248 and Delta Air Lines' (DAL.N) 246 flight cancellations. Southwest and Delta said they are monitoring the storm, while SkyWest did not immediately respond to a request for a comment.

☆ Airlines cancel over 1,000 U.S. flights as winter storm grips states
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +1 min

Feb 22 (Reuters) - Airlines canceled more than 1,000 flights in the United States on Wednesday as a strong winter storm makes its way through the western and central states. A total of 1,035 flights within, into or out of the United States were canceled by 0915 am ET, according to flight-tracking website FlightAware, which showed 932 flights were delayed. Low-cost carrier Southwest Airlines Co (LUV.N) led the cancellations with 235 flights, followed by Delta Air Lines (DAL.N) that canceled 197 flights. Southwest and Delta did not immediately respond to Reuters' requests for comment. Reporting by Aishwarya Nair in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

☆ China to scrutinize Ford's EV battery deal with CATL - Bloomberg News
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +1 min

Feb 16 (Reuters) - China will scrutinize Ford Motor Co's (F.N) latest deal with battery giant CATL (300750.SZ) to ensure the Chinese company's core technology is not shared with the U.S. automaker, Bloomberg News reported on Thursday. Ford did not immediately respond to a Reuters request for a comment, while CATL could not be reached outside market hours. Senior Chinese leaders asked for the extra scrutiny given the sensitivity of the deal and the current state of tensions between Washington and Beijing, the report said. Ford on Monday announced plans to invest $3.5 billion to build an electric vehicle battery plant in Michigan, with help from CATL's technology. Under the deal, CATL - short for Contemporary Amperex Technology Co Ltd - will license the technology and technical assistance needed for Ford to produce lithium iron phosphate batteries in Michigan.

Ford can save up to $2.5 billion this year through better management of production schedules and a drop in commodity prices, the company's chief financial officer, John Lawler, said at an auto conference. The automaker posted dismal quarterly results earlier this month and blamed chip shortages, supply chain disruptions and production "instabilities" for adding to its costs. Lawler has said Ford faces $5 billion in higher costs this year and that the company will be "very aggressive" in reducing expenses in its manufacturing, supply chain and distribution operations. Longer term, the company aims to reduce dealer inventories and drive more transactions online, among other measures, according to Chief Executive Jim Farley. Making an EV more aerodynamic can save "thousands of dollars in battery costs," Farley said.

☆ Airbnb confident on revenue as travel demand defies recession fears
▼ + stars: | 2023-02-14 | by ( ) www.reuters.com time to read: +1 min

A stronger U.S. dollar and reopening of closed borders have empowered consumers to spend more on travel even as recession fears have sparked concerns over discretionary spending. Airbnb said travel demand continues to be strong in the first quarter despite recessionary fears sparking concerns around consumer spending. The company forecast first-quarter revenue between $1.75 billion and $1.82 billion, higher than analysts' expectations of $1.69 billion, as per Refinitiv data. Revenue rose 24% to $1.90 billion during the holiday quarter ended December, lower than the preceding two quarters, but beat analysts' average estimate of $1.86 billion. Meanwhile, fourth-quarter average daily rates fell 1% to $153 and bookings rose 20% to $13.5 billion, below analysts' average expectation of $13.69 billion.

☆ Bombardier jet deliveries to rise in 2023 on private flying boost
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +2 min

[1/2] An attendee exits the Bombardier Global 6500 business jet at the National Business Aviation Association (NBAA) exhibition in Las Vegas, Nevada, U.S. October 21, 2019. REUTERS/David Becker/File PhotoFeb 9 (Reuters) - Canada's Bombardier Inc (BBDb.TO) on Thursday forecast higher business jet deliveries for 2023, after strong demand for private flying drove its quarterly results above expectations despite persistent supply-chain snags. Cessna jet maker Textron Inc (TXT.N) had also offered a strong 2023 forecast last month. It forecast 2023 revenue of more than $7.6 billion, compared with estimates of $7.69 billion, according to Refinitiv data. Free cash flow is expected to be over $250 million, compared with last year's $735 million.

[1/3] A biker rides his Harley-Davidson during a parade at the "Hamburg Harley Days" in Hamburg, Germany, June 24, 2018. Shares in the U.S. company rose 8.3%. Harley-Davidson said it expects revenue from its motorcycle business to grow in 2023. Global motorcycle shipments rose to 34,000 from 28,900 a year ago. The company's net profit rose to $39.7 million, or $0.28 cents per share, in the quarter ended Dec. 31, outpacing forecasts of 6 cents per share.

Jan 31 (Reuters) - Caterpillar Inc's (CAT.N) fourth-quarter earnings slid by 29%, the company reported on Tuesday, citing higher manufacturing costs and foreign currency effects that weighed on the industrial bellwether's margins. The Texas-based company noted that profit was also hit by a $925 million "goodwill impairment" charge and margin-eroding restructuring costs. Strong pricing that the company implemented over the past two years in an effort mitigate rising manufacturing costs have sustained top-line growth. Caterpillar's sales and revenue for the quarter rose 20% to $16.6 billion despite weaker sales in the Asia Pacific region. Operating profit rose 4% to 1.7 billion while free cash flow from the ME&T division came in at $5.8 billion.

☆ Caterpillar profit falls as costs weigh
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: 1 min

Jan 31 (Reuters) - Caterpillar Inc (CAT.N) on Tuesday reported a drop in quarterly profit as increasing manufacturing costs related to materials and freight pressured the heavy machinery maker's margins. Fourth-quarter earnings per share slid by 29%. Adjusted profit for the quarter ended December rose to $3.86 per share from $2.69 a year earlier. (This story has been corrected to remove reference/comparison to analysts' estimates throughout and to add that fourth-quarter earnings per share slid by 29% in second paragraph)Reporting by Aishwarya Nair in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

[1/4] Ford Mustang Mach-E GT is seen during the Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. The move comes as electric vehicle manufacturers are feeling pressure from Tesla's price cut to respond. "Ford just cut Mustang EV prices in response to Tesla’s price cut. "Tesla’s price cut was a major blow to the prospects of competing EV models and the Mustang Mach-E directly competes with Tesla’s Model Y," said Garrett Nelson, an analyst at CFRA Research. Ford said existing Mustang Mach-E customers awaiting delivery of vehicles will automatically receive the price cut.

Jan 26 (Reuters) - U.S. airlines expect strong travel demand that drove record fourth-quarter revenues to continue into 2023, but economic uncertainty and burgeoning labor and operations costs could cloud their rosy outlooks. On Thursday, American Airlines (AAL.O), JetBlue Airways Corp (JBLU.O) and Alaska Air Group (ALK.N) forecast better-than-expected full-year earnings. JetBlue forecast expenses excluding fuel to rise 1.5% to 4.5% in 2023. China's recent reopening may also boost international travel, but demand remains uncertain and U.S. airlines face challenges toward cashing in. American Airlines forecast an adjusted profit of $2.50 to $3.50 per share for 2023, handily beating analyst expectations of $1.77, according to Refinitiv data.

☆ American Airlines forecasts higher profit on buoyant travel demand
▼ + stars: | 2023-01-26 | by ( ) www.reuters.com time to read: +1 min

Jan 26 (Reuters) - American Airlines (AAL.O) on Thursday forecast sharply higher profit for the full year and beat estimates for quarterly earnings on buoyant demand for air travel. The carrier expects an adjusted profit of $2.50 and $3.50 per share for 2023, up from 50 cents per share a year earlier. Industry executives have said that they don't see any signs of slowing demand in the face of a potential slowdown. The Fort Worth, Texas-based carrier reported an adjusted profit of $827 million, or $1.17 per share, for the quarter ended Dec. 31, compared with a loss of $921 million, or $1.42 per share, a year earlier. Analysts on average had expected the airline to post a profit of $1.14 per share, according to Refinitiv IBES data.

Jan 26 (Reuters) - U.S. carriers on Thursday gave strong earnings forecasts for the year despite economic worries after buoyant demand for air travel during the crucial holiday season helped lift quarterly results. On Thursday, American Airlines (AAL.O), JetBlue Airways Corp (JBLU.O) and Alaska Air Group (ALK.N) all forecast better-than-expected earnings for the full year. The company's Northeast Alliance partner American Airlines forecast an adjusted profit of $2.50 to $3.50 per share for 2023, handily beating analyst expectations of $1.77, according to Refinitiv data. "As we turn our attention to 2023, we will continue to prioritize reliability, profitability and debt reduction," American Airlines Chief Executive Robert Isom said. read moreBoth American Airlines and JetBlue posted fourth-quarter earnings that beat estimates on Thursday.

Companies Goodyear Tire & Rubber Co FollowJan 25 (Reuters) - The U.S. Justice Department is investigating Goodyear Tire & Rubber Co (GT.O) for its handling of a recalled tire that has been linked to eight deaths and dozens of injuries, the Wall Street Journal reported, citing people with knowledge of the matter and documents reviewed by the newspaper. "We cooperated fully with the National Highway Traffic Safety Administration's (NHTSA) review of the G159 275/70R22.5 tire, which concluded in June, 2022," the company said in an emailed statement to Reuters. In June last year, Goodyear said it would recall 173,000 G159 tires used on recreational vehicles because of the potential of catastrophic tread separations. However, the company said in October that it did not believe its tires were defective. Reporting by Aishwarya Nair in Bengaluru, additional reporting by Priyamvada C; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ 3M to cut 2,500 jobs as demand weakens, profit drops
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +1 min

Jan 24 (Reuters) - 3M Co (MMM.N) said on Tuesday it would cut 2,500 manufacturing jobs after reporting a lower profit, as the U.S. industrial conglomerate faces a demand slowdown in its unit that sells products including notebooks, air purifiers and respirators. Additionally, a cut back from U.S. retailers dealing with elevated inventory levels also dampened demand. "As demand weakened, we adjusted manufacturing output and controlled costs, which enabled us to improve inventory levels," he added. Excluding items, the company reported a profit of $2.28 per share compared to $2.45 per share a year earlier. Reporting by Aishwarya Nair in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Canada's Ritchie Bros raises cash payout under revised offer for IAA
▼ + stars: | 2023-01-23 | by ( ) www.reuters.com time to read: +2 min

Jan 23 (Reuters) - Canada's Ritchie Bros Auctioneers (RBA.TO) on Monday sweetened the cash component of its buyout offer for IAA Inc (IAA.N) by 28%, valuing the U.S. auto retailer at $5.94 billion, and also secured the backing of a key IAA shareholder which had questioned the initial offer. IAA shares rose 4.9% in morning trade, while Ritchie Bros's Toronto-listed shares were up 3%. The improved offer comes at a time when many companies are reducing costs and initiating layoffs in face of a potential economic downturn. Under the revised offer, IAA stockholders would receive $12.80 in cash, up from $10 earlier, and 0.5252 Ritchie Bros. share for each IAA share, down from 0.5804. Ritchie made the initial offer in November, valuing the company at about $7.3 billion, including debt.

☆ Investor Ryan Cohen builds Alibaba stake, pushes for more share buybacks
▼ + stars: | 2023-01-16 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +4 min

Jan 16 (Reuters) - Billionaire investor Ryan Cohen has built a stake in China's Alibaba Group (9988.HK) worth hundreds of millions of dollars and is pushing the e-commerce giant to increase and speed up share buybacks, people familiar with the matter said on Monday. In his communications, Cohen told Alibaba he thought the company could reach double-digit sales growth and nearly 20% free cashflow growth over the coming five years, according to the sources. Cohen felt the company's shares were undervalued at the time, according to the people, who declined to be identified because the investment is private. The people said that Cohen is eager to have a collaborative, long-term relationship with Alibaba and that he has praised management's capabilities. Over roughly the same period, Alibaba has steadily escalated its share buyback program.

☆ Activist investor Ryan Cohen builds stake in Alibaba -WSJ
▼ + stars: | 2023-01-16 | by ( ) www.reuters.com time to read: 1 min

Jan 16 (Reuters) - Activist investor Ryan Cohen has built a stake in China's Alibaba Group Holding Ltd (9988.HK) worth hundreds of millions of dollars, the Wall Street Journal reported on Monday, citing people familiar with the matter. Cohen is privately pushing the Chinese e-commerce giant to accelerate and further boost its share repurchase program, the newspaper reported. Reporting by Aishwarya Nair in Bengaluru; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

Major carriers such as United Airlines Holdings Inc (UAL.O), American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N) and Southwest Airlines Co (LUV.N) have rushed to add staff after a faster-than-expected rebound in the U.S. travel market. "Margins are set to take a hit in 2023 as airlines ratify new contracts with labor groups," Cowen analyst Helane Becker said last month. "Delta's recent tentative pilot agreement, assuming it is ratified, could drive incremental unit costs higher by ~2%, and 2%-3% higher for American, Southwest and United," Barclays analyst Brandon Oglenski said on Wednesday. American Airlines on Thursday forecast a higher fourth-quarter profit as the Texas-based carrier benefited from strong demand for travel during the key holiday season. Shares of American Airlines, Delta Air Lines, United Airlines and Southwest Airlines fell between 14% and 30% in 2022 on mass cancellations and economic worries.

☆ Lightning eMotors flags sales loss due to supply issues from Nikola unit
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: 1 min

Jan 10 (Reuters) - Zero emission vehicle manufacturer Lightning eMotors Inc (ZEV.N) said on Tuesday it "lost significant" sales volume in the fourth quarter, citing battery supply issues from a Nikola Corp (NKLA.O) subsidiary. "Romeo Power Systems Inc unexpectedly notified Lightning that it would not honor its commitments to supply battery packs, or to provide further service or support, under its long-term supply agreement with Lightning," the company said. Romeo Power Systems did not immediately respond to a Reuters request for a comment. Reporting by Aishwarya Nair in BengaluruOur Standards: The Thomson Reuters Trust Principles.

☆ Southwest launches one-way fares starting $49 for some routes
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: +1 min

Jan 10 (Reuters) - Southwest Airlines Co (LUV.N) on Tuesday launched a limited fare sale for select one-way routes, days after the carrier's massive flight disruptions in December. The airline said it will offer the fares starting at $49 for certain one-way routes, with travelers required to make the purchase 21 days in advance. Southwest faced operational chaos during the peak holiday season due to a tech meltdown, forcing the carrier to cancel more than 16,000 flights that stranded passengers and invited scrutiny from the U.S. government. BofA Global Research on Tuesday cut the price target on the company's shares by $3 to $42 after the wave of cancellations. Reporting by Aishwarya Nair in BengaluruOur Standards: The Thomson Reuters Trust Principles.

☆ S&P downgrades Southwest Airlines outlook, expects weaker FFO
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +2 min

Jan 9 (Reuters) - Global ratings agency S&P Global lowered Southwest Airlines Co's (LUV.N) outlook to stable from positive, saying it expects the airline to generate weaker funds from operations (FFO) through 2023 amid the recent operational meltdown. Lingering effects from the operational issues and a possible decline in travel demand due to inflation could limit Southwest's ability to raise its fares to cover higher costs, S&P said. Moody's believes the impact on Southwest's passenger volumes and finances will barely be noticeable by this spring and beyond. Last week, Southwest forecast a pre-tax hit of $725 million to $825 million to quarterly earnings due to the cancellations. Reporting by Shivansh Tiwary and Aishwarya Nair in Bengaluru; Editing by Krishna Chandra Eluri and Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

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