United Air earnings hit by Max groundings
NEW YORK — United Airlines lost $124 million in the first quarter, which it blamed April 16 on a three-week grounding of all Boeing 737 Max 9s after a panel blew off an Alaska Airlines jet in January.
United indicated it would receive far fewer new planes from Boeing this year than it expected, and it has begun leasing Airbus jets to fill out its fleet.
Financial results released by the airline pointed to continued strength in demand for air travel, especially within the United States and across the Atlantic. United forecast better-than-expected profit in the second quarter.
United was hobbled during most of January by the temporary loss of its 79 Max 9 aircraft. The airline was forced to cancel hundreds of flights and switch planes on many others. United said the grounding cost it $200 million — enough to turn a small profit into a loss for the quarter.
BofA profits fall 18%, tops forecasts
NEW YORK — Bank of America said its first-quarter profit fell 18 percent to $6.67 billion, as it dealt with rising expenses tied to higher interest rates. But the results beat estimates.
The Charlotte-based bank gain came to 76 cents per share, including a $700 million payment to the Federal Deposit Insurance Corp. to help the agency replenish its coffers. Excluding that one-time charge, the bank earned 83 cents per share.
Bank of America has been dealing with the effects of higher interest rates on its loan and investment portfolio for the past year. The bank bought a sizable number of bonds during the pandemic when rates were low, and those bonds have lost value as interest rates have risen.
The bank, one of the largest operating in South Carolina, is also paying more on deposits, which has caused its profits to be squeezed slightly.
Georgia Power to add new generating capacity
ATLANTA — Georgia Power Co. got the go-ahead April 16 to build and buy more electrical generation from the state Public Service Commission, despite questions from environmentalists about the demand forecast driving the move and who say it's unwise to let the company burn more fossil fuels.
Four of the Republican commissioners voted to approve the plan put forward by the largest unit of Atlanta-based Southern Co., while Republican Bubba McDonald abstained.
Georgia Power pledges the deal will put downward pressure on rates for existing customers.
Under an agreement negotiated between the utility and commission staff, the company pledges it will credit $615 million a year in revenue toward future rate calculations in 2029 and later, even if all the new customers the company forecasts do not sign up.
Georgia Power says that if nothing else changes, that amount of money could cut rates by 1.6 percent, or $2.89 a month, for a typical residential customer. However, the company is not guaranteeing rates will fall, because other spending could be approved in the meantime.
No rates would change as a result of the deal until 2026.
China economy grew 5.3% in Q1
HONG KONG — China's economy grew faster than expected in the first quarter of the year with help from policies and stronger demand, though signs of weakness persisted.
The world's second-largest economy expanded at a 5.3 percent annual pace in January-March, surpassing forecasts of about 4.8 percent. Compared to the previous quarter, the economy expanded 1.6 percent.
China's economy has struggled to bounce back from the COVID-19 pandemic, with a slowdown in demand and a property crisis weighing on its growth. Policymakers have unveiled a raft of fiscal and monetary policy measures meant to boost the economy and financial markets.
China has set an ambitious gross domestic product growth target of about 5 percent for 2024.
IMF's outlook brightens, still modest
WASHINGTON — The International Monetary Fund has upgraded its outlook for the global economy this year, saying the world appears headed for a "soft landing" — reining in inflation without much economic pain and producing steady if modest growth.
The IMF now envisions 3.2 percent worldwide expansion this year, up a tick from the 3.1 percent it had predicted in January and matching 2023's pace. And it foresees a third straight year of 3.2 percent growth in 2025.
In its latest outlook, the IMF, a 190-country lending organization, notes that the global expansion is being powered by unexpectedly strong growth in the United States, the world's largest economy.
Though sharp price increases remain an obstacle across the world, the IMF foresees global inflation tumbling from 6.8 percent last year to 5.9 percent in 2024 and 4.5 percent next year. In the world's advanced economies alone, the organization envisions inflation falling from 4.6 percent in 2023 to 2.6 percent this year and 2 percent in 2025, brought down by the effects of higher interest rates.
Apple CEO eyes Vietnam for investment
HANOI, Vietnam — Apple CEO Tim Cook said April 16 that he wants to further increase investment in Vietnam a day after the company announced it would spending on suppliers in the Southeast Asian manufacturing hub.
Vietnam has become more important to Apple as the company seeks to diversify its supply chains away from China, where most of its smartphones and tablets are assembled.
The company began looking at moving its production to countries like Vietnam, and more recently India, after shutdowns to fight COVID-19 in China repeatedly disrupted the company's shipments.
Cook made his comments while meeting with Vietnamese Prime Minister Pham Minh Chinh, according to state media outlet Voice of Vietnam.
It was a record year for wind energy
NEW YORK — The world installed 117 gigawatts of new wind power capacity in 2023, a 50 percent increase from 2022, making it the best year for new wind projects on record, according to the industry's trade association.
In its latest Global Wind Report, published April 16, the Global Wind Energy Council explores the state of the industry and the challenges it's facing in its expansion.
The increase in wind installations "shows that the world is moving in the right direction in combating climate change," the report said.
Dr. Martens shares fall to record low
NEW YORK — Chunky bootmaker Dr. Martens is warning of a tough year ahead.
Shares in Dr. Martens PLC, known as Doc Martens, plunged Tuesday after the iconic brand forecast wholesale revenue in the U.S., its largest market, would decline by double-digits compared with last year.
Dr. Martens also announced a leadership shakeup. After six years at the helm of the company, CEO Kenny Wilson will step down. Ije Nwokorie, Dr. Martens' chief brand officer, will take his place.
Trading in Dr. Martens stock was temporarily halted on the London Stock Exchange on April 16 as it sank 29 percent.
The company's footwear became a symbol of youthful rebellion in the 1960s and has remained popular with a string of subcultures. But the business got tripped up with overexpansion and brand mismanagement in recent years.
