CTV National News: The crushing cost of tariffs against an auto giant
Auto giant Stellantis says its estimates show a US$2.68 billion net loss in the first half of the year due to U.S. tariffs and some hefty charges.
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CTV News
16 minutes ago
- CTV News
UnitedHealth says it is under a U.S. federal investigation and co-operating
The logo for UnitedHealth Group appears above a trading post on the floor of the New York Stock Exchange, April 17, 2025. (AP Photo/Richard Drew) Shares of UnitedHealth Group slipped Thursday after the health care giant said it was under a U.S. Department of Justice investigation. The company said it has started complying with both criminal and civil requests from federal investigators and it was cooperating with them. '(UnitedHealth) has a long record of responsible conduct and effective compliance,' the company said in a Securities and Exchange Commission filing. Earlier this year, The Wall Street Journal said federal officials had launched a civil fraud investigation into how the company records diagnoses that lead to extra payments for its Medicare Advantage, or MA, plans. Those are privately run versions of the government's Medicare coverage program mostly for people ages 65 and over. The company's UnitedHealthcare business covers more than 8 million people as the nation's largest provider of Medicare Advantage plans. The business has been under pressure in recent quarters due to rising care use and rate cuts. The Journal said in February, citing anonymous sources, that the probe focused on billing practices in recent months. The paper then said earlier this month that a federal criminal health care-fraud unit was investigating how the company used doctors and nurses to gather diagnoses that bolster payments. UnitedHealth Group Inc. said that it reached out to the Justice Department 'after reviewing media reports about investigations into certain aspects of the company's participation in the Medicare program.' UnitedHealth runs one of the nation's largest health insurance and pharmacy benefits management businesses. It also operates a growing Optum business that provides care and technology support. UnitedHealth raked in more than US$400 billion in revenue last year as the third-largest company in the Fortune 500. Last year, its share price topped $630 to reach a new all-time high. But company shares have mostly shed value since December, when UnitedHealthcare CEO Brian Thompson was fatally shot in midtown Manhattan on his way to the company's annual investor meeting. A 26-year-old suspect, Luigi Mangione, has been charged in connection with the shooting. In April, shares plunged after the company cut its forecast due to a spike in health care use. A month later, former CEO Andrew Witty resigned and the company withdrew its forecast. The stock price slipped another 2%, or $5.12, to $287.39 Thursday morning. That represents a 54% drop from its all-time high. UnitedHealth will report its second-quarter results next Tuesday. Tom Murphy, The Associated Press
CTV News
16 minutes ago
- CTV News
Keurig Dr Pepper quarterly revenue beats expectations fueled by U.S. demand
The logo for Keurig Dr. Pepper appears above a trading post on the floor of the New York Stock Exchange, Thursday, July 12, 2018. (AP Photo/Richard Drew, File) Keurig Dr Pepper reported second-quarter slightly revenue above Wall Street expectations on Thursday, driven by strong demand for its energy drinks and soft beverages, especially in the U.S. Why it is important The Snapple maker enjoyed resilient demand for its higher-priced ready-to-drink beverages, including Yoo-Hoo and Crush, and through the popularity of its majority-owned energy-drink maker, Ghost. The company's results mirror those of bigger rivals PepsiCo's and Coca-Cola's, both of which recently beat quarterly estimates on strong demand. Key quote 'Though the back half will present new challenges, we are on track to deliver our 2025 outlook,' said CEO Tim Cofer. Market reaction Shares of Keurig Dr Pepper, which rose about four per cent so far this year, were flat in premarket trading. Context Instability arising from U.S. President Donald Trump's fluctuating tariff policies and the resulting trade tensions has led to a decline in consumer spending. Keurig also faces a direct risk from tariffs on its business in Canada and Mexico, especially due to the Canadian boycott of U.S. products, and the impact of tariff-driven coffee prices. By the numbers Net sales for the quarter rose 6.1 per cent to US$4.16 billion, compared with estimates of US$4.14 billion, according to data compiled by LSEG. Keurig Dr Pepper posted an adjusted profit of 49 cents per share, in line with analysts' estimates. The Sun Drop maker's volumes grew five per cent compared to a 1.8 per cent rise a year ago, with Ghost contributing 4 percentage points to the volume growth. Net sales in the U.S. beverages segment rose 10.5 per cent compared to a 3.3 per cent rise in the year-ago quarter. The company continues to expect annual net sales to grow in the mid-single-digit range and adjusted profit to grow in the high-single digits. --- Reporting by Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber
CTV News
16 minutes ago
- CTV News
Union Pacific beats quarterly profit estimates on strong coal shipments
Union Pacific, the largest U.S. freight railroad operator, beat second-quarter profit estimates on Thursday, powered by higher revenue from coal shipments and improved pricing. Coal shipment volumes, a weak spot for U.S. railroad operators, have picked up after U.S. President Donald Trump signed executive orders aimed at boosting coal production. Union Pacific, seen as a barometer for U.S. economic activity, also benefited from strong volumes in its grain products segments and industrial chemicals shipments. While the policy shift has provided a recent boost to rail carriers, the North American railroad industry has struggled with volatile freight volumes, rising labor and fuel costs and growing pressure from shippers over service reliability. The West Coast rail giant has reportedly been in early-stage talks with its East Coast peer, Norfolk Southern, to explore a cross-continental railroad merger, possibly creating a single-line network stretching from coast to coast. However, a merger with Norfolk would be subject to severe antitrust scrutiny from regulatory bodies such as Surface Transportation Board, which oversees railroads. Union Pacific's quarterly profit rose to US$3.03 per share, beating analysts' average estimate of US$2.91 per share, according to data compiled by LSEG. Adjusted operating ratio, a key metric for measuring the operational efficiency of a railroad, rose by 230 basis points to 58.1 per cent from a year earlier. Total operating revenue for the quarter ended June 30 came in at US$6.15 billion, compared with the average estimate of US$6.16 billion. The company said operating revenue was driven by higher volume and 'solid' core pricing gains. --- Reporting by Anshuman Tripathy in Bengaluru; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty
