Business

Thailand Manufacturing Activity Falls for 15th Straight Month

Employees at an automobile assembly line in Thailand, where the Manufacturing Production Index fell for the 15th straight month

BANGKOK – Thailand’s economy continued to struggle in the second quarter of 2014, with the country’s growth and manufacturing activity dropping—a scenario that highlights concerns over the junta’s ability to revive consumption and investment hit hard by months of political instability.

Thailand’s Finance Ministry reported Wednesday that the local economy shrank 0.3% year-over-year in the second quarter of 2014, although it grew 0.2% on a quarterly basis during the same period.

The Bank of Thailand earlier said the local economy likely contracted 0.4% on an annual basis during the months of April and June of this year.

“In June and the second quarter of this year, there continued to be signs of slowdown in the tourism sector and private spending,” said Kritsada Jinavijarana, director-general of the Finance Ministry’s Fiscal Policy Office.

The annual contraction led the ministry to lower its 2014 growth forecast to 2% from an earlier projection of 2.6%.

In the first quarter of 2014, Thailand’s economy diminished by 0.6% from a year ago and 2.1% from the quarter before. The country’s economy expanded 2.9% in 2013.

The government’s economic planning agency, the National Economic and Social Development Board, which is in charge of all economic data reports, is scheduled to release Thailand’s official GDP report on August 18.

The Finance Ministry’s latest projection, however, was still rosier than the Bank of Thailand’s forecast of 1.5% gross-domestic-product growth for 2014 and much more optimistic than many economists, including the bearish view of Moody’s Analytics which projects an economic contraction for Thailand in 2014.

“We’re expecting the Thai economy will contract 0.4% through 2014 and when you see prints, like the latest production numbers, they kind of indicate our forecast,” said Fred Gibson, an economist at Moody’s Analytics in Australia.

Earlier in the day, official data showed that Thailand’s Manufacturing Production Index fell for the 15th consecutive month in June.

The MPI, which measures the volume of production and indicates the direction of the country’s manufacturing sector, fell 6.6% from a year earlier in June, steeper than a revised 4% decline in May, the Office of Industrial Economics at the Industry Ministry said Wednesday.

Somchai Harnhirun, director general of the OIE, attributed the latest slide in the country’s MPI to weak domestic demand and a slowdown in spending, particularly for automobiles and the electrical appliances.

Thailand’s vehicle production was 26.1% lower than a year earlier in June while electrical-appliance output fell 8.73% over the same period, as consumers refrained from spending due to sluggish economic conditions in the country.

Capacity use at factories fell to 60.61% in June from a revised 61.56% in May, even as the junta approved $6.3 billion worth of investment incentives for more than 100 projects.

“I think the weakness in production has stemmed from the overall slowdown in the economy that the political crisis has brought about,” said Mr. Gibson of Moody’s Analytics which projected a 3.2% contraction for June’s MPI.

Thailand’s army chief Gen. Prayuth Chan-ocha successfully seized power from an elected government on May 22, ousting the government of former Prime Minister Yingluck Shinawatra —after months of political rallies, social unrest and street violence which have put the economy on the brink of a recession.

Right after the coup, the junta, which earlier this week adopted a provisional charter to pave the way for the establishment of an interim government, has been implementing various measures to shore up the economy—including the disbursement of overdue payment worth about $2.7 billion to farmers who participated in the state rice-subsidy program and the approval of investment incentives to over 100 projects worth $6.3 billion as well as a $75-billion infrastructure-development plan.

While all these attempts to revive the economy have provided an upside to the economic outlook, a sense of uncertainty lingers as consumption and investment remain shaky.

“The only consolations are the improving investor sentiments (seen from recent net equity inflows into the Stock Exchange of Thailand), mild recovery in consumer confidence, and a relatively stable government body,” said Barnabas Gan, an economist at OCBC Bank in Singapore. “The lackluster first-half-year data, to us, will merely be water under the bridge as we focus on the recovery expected in the second half of 2014.”

Mr. Kritsada of the Finance Ministry’s Fiscal Policy Office hopes local spending and manufacturing activity will start to improve during the remainder of the year, when exports and government spending are expected to grow further due to stronger consumer and business confidence.

By Nopparat Chaichalearmmongkol

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP