Latest news with #USmarket
Fast Company
14 hours ago
- Business
- Fast Company
Kraft Heinz beats expectations for the 2nd quarter as home-cooking rises
Kraft Heinz beat estimates for quarterly results on Wednesday, helped by resilient demand for its pantry staples and condiments in the United States as consumers tried to stretch their household budgets. A mix of sticky inflation and heightened economic uncertainty has forced consumers to cook more affordable meals at home instead of eating out. People prioritizing protein in their diets has also boosted demand for Kraft Heinz's steak sauce and Worcestershire sauce. The company's board is 'working with urgency' to evaluate strategic options for some brands, executives said on a post-earnings call, following media reports earlier this month that it was exploring a spin-off of the grocery business. Kraft Heinz recorded a $9.3 billion impairment charge in the second quarter due to a steady decline in its market capitalization to $33.8 billion, with the stock value dropping about 30% since 2022. The company reiterated its annual targets and now expects a cost impact of about 100 basis points this year from President Donald Trump's tariffs. Its shares were up 1% in early trade. The Philadelphia Cream Cheese maker has worked on introducing healthier options in some categories such as desserts to capture consumer demand, and has said it would remove food dyes from its portfolio. It also announced plans to change the packaging for Kraft Mayonnaise to highlight the absence of dyes and artificial flavors, weeks after snacks giant PepsiCo said it will rebrand its Lay's and Tostitos chips without those substances. While Kraft Heinz's quarterly volumes fell about 2.7 percentage points due to some weakness in categories such as coffee, cold meat cuts and ready-to-eat meals, the decline was lower than the prior quarter's drop of 5.6 percentage points. In North America, its biggest market by revenue, volumes fell 3.4 percentage points. 'Looking ahead, we continue to expect growth in our international business, but we are not contemplating an improvement in the U.S. industry for the rest of 2025,' CEO Carlos Abrams-Rivera said in a statement. With consumers seeking value, the company has been investing in promotions, and that, along with inflation, could pressure margins in the current quarter, said Arun Sundaram, analyst at CFRA Research. Net sales for the three months ended June 28 came in at $6.35 billion, beating analysts' average estimate of $6.26 billion, according to data compiled by LSEG.
Top Gear
14 hours ago
- Automotive
- Top Gear
Uh oh, Cupra has put the brakes on its US launch
USA Spanish firm originally planned a US launch in 2030, but that has now been postponed Skip 1 photos in the image carousel and continue reading Are you an American who was looking forward to driving a medium-to-hot Spanish car? Well, we have some bad news for you, because Cupra has announced it is postponing its planned US launch. 'Given the ongoing challenges within the automotive industry and in light of evolving market dynamics, Cupra has strategically decided to postpone its planned entry into the US market, originally scheduled for 2030,' it said. Advertisement - Page continues below We know Cupra had been speaking to Penske about its US market launch, and that it originally planned on building a larger SUV in one of VW's North American factories. That of course might have made the tariff situation slightly easier for one of its cars, but even though a US-EU trade deal was announced this week that brings the tariffs on EU-built cars entering the US down from 27.5 to 15 per cent, Cupra has still put the brakes on all of its American plans. And yet, it doesn't sound as though this is a complete cancellation of the expansion. You might like 'We're not stopping, just postponing our US launch and will continue to monitor market developments in the coming years to determine the best timing and approach, aligned with the brand's long-term vision,' said Sven Schuwirth, executive VP for sales, marketing and aftersales. 'In the meantime, Cupra will build on the strong momentum it has achieved in existing key territories and will soon expand into new high-potential markets to broaden its global footprint.' Advertisement - Page continues below As part of the business update, Cupra was also keen to point out it has just had its 'best first half ever' with 167,600 vehicles delivered between January and June 2025. That's apparently a 33.4 per cent increase over the same period last year. The Formentor crossover (pictured above) remains its best-seller, accounting for just under a third of those sales. Looking for more from the USA? Thank you for subscribing to our newsletter. Look out for your regular round-up of news, reviews and offers in your inbox. Get all the latest news, reviews and exclusives, direct to your inbox.
Entrepreneur
2 days ago
- Business
- Entrepreneur
IT Sector's Muted Q1 Trend Likely to Continue through FY26
The Indian IT sector is expected to witness a flat revenue growth of 0-2 per cent in FY26 as compared to the previous year in terms of constant currency revenue growth, according to CareEdge Ratings You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The Indian IT services industry has experienced muted growth during the first quarter earnings as clients across sectors continued to delay or defer discretionary projects due to macroeconomic uncertainty and cost pressures. Despite some commentary on a better second half of the fiscal, CareEdge Ratings believes the Indian IT sector is expected to witness a flat revenue growth of 0-2 per cent in FY26 as compared to the previous year in terms of constant currency revenue growth. This is underpinned by a healthy deal pipeline poised to convert into wins over the near term, ensuring revenue visibility for the next few quarters. "Increasing digitisation and rise in demand for emerging technologies like 5G, advanced data analytics, artificial intelligence, cloud computing, cyber-security, robotics and blockchain provide growth opportunities for Indian IT/ITeS firms," CareEdge said in a report. It further stated that, "The uncertainty arising from tariffs and movements in the US market is a significant concern for the IT industry, as a large proportion of its revenues are derived from the US market. The IT-software industry has been re-aligning its offerings to cater to the evolving requirements of its clients with respect to emerging technologies to become more effective in the dynamic business environment. Growth remains muted in key markets, as clients are cautious in spending prioritizing cost optimisation and vendor consolidation." Tata Consultancy Services (TCS) reported muted growth in core markets (except India) due to deferrals and decision-making delays in Q1. Deal TCV has been strong for last three quarters, up 7.4 per cent YoY, but revenue growth in core markets has been flat at -0.7 per cent YoY USD due to re-scoping, delay in ramp-up and elongation in deal tenure. Pace of client decision making did not improve in Q1. Management believes that uncertainty would persist until trade deals between US and all major countries are finalised. Management reiterated its target to grow better in international markets in FY26 versus +0.5 per cent YoY USD in FY25. "We continue to value the company at 24x on Q3FY27-Q2FY28 EPS of INR 152.9 to arrive at our target price of INR 3,670. We continue to like TCS for better execution, profitability and return metrics in the industry," ICICI Securities said in a note. Wipro grew marginally better than expected at -2 per cent in constant currency, within its guided range for Q1, led by the healthcare and technology verticals. Guidance for Q2FY26 is flat at the midpoint. With a strong TCV and two mega deals, focus shall be on execution of these mega deals. "Though Wipro has indicated that H2FY26 will likely be better than H1 on the back of these deals, negative seasonality of H2 will also be at play. The company has indicated that margin might be impacted on upfront investment for large deals for a few of the quarters. WPRO has been losing clients and has trouble gaining broad-based growth traction across verticals. We factor in a -0.5 per cent IT services revenue USD growth print for FY26. We cut FY26–28E EPS by about 1–2 per cent and maintain 'Reduce' with a one-year forward target price of INR 240 on a target PE of 18x," ICICI Securities said. LTIMindtree reported in-line revenue growth led by a recovery in consumer and healthcare segments, and healthy momentum in BFSI. EBIT margin improved about 50 basis points QoQ on expected lines, enabled largely by its focused margin improvement program. TCV wins have been healthy with TCV up 13.6 per cent YoY over the last three quarters. "But this is yet to translate into revenue growth (5.3 per cent YoY USD over same period). Management is focussing on execution i.e. improving its large deal pipeline and win rates amidst a challenging macro environment and expects revenue growth momentum to improve from here on. We continue to value LTIMindtree at 22x on Q3FY27E to Q2FY28E EPS of INR 215 to arrive at a revised target price of INR 4,740. We maintain 'Reduce'. LTIM has higher exposure to its discretionary portfolio, constraining its growth in the current weak macro," ICICI Securities said.
Bloomberg
2 days ago
- Business
- Bloomberg
Most Phones Sold in US Are Now Made in India as Apple Shifts
India has overtaken China to become the top source of smartphones sold in the US, after Apple Inc. shifted to assemble more of its iPhones in the South Asian country. In the quarter through June, India was the largest manufacturer of smartphones shipped to the US for the first time, accounting for 44% of the market, according to Canalys data. Vietnam, home to much of Samsung Electronics Co. 's production, came in second. China fell from having more than 60% of all estimated shipments a year ago to just 25%.
Irish Times
3 days ago
- Business
- Irish Times
Small Irish businesses say tariffs will hurt US consumers most
Many smaller Irish exporters have mixed feelings about the trade agreement between the European Union and the United States. Last week, they understood there was still an outside chance that discussions could go off the rails with the possibility of a trade war. At the same time, they are less than impressed with the outline deal being presented in the media. Sarah Furno, of Cashel Blue, greeted the news from Scotland yesterday with a 'degree of relief' and the sense that the Tipperary cheese company can now make more definite plans for the US market. Sarah and Sergio Furno of Cashel Blue cheesemakers 'Uncertainty is impossible and disabling especially in a prolonged manner,' she says. 'Overall we feel it could have been worse. It's a relatively even playing field for imports and there is enough light to keep doors open. READ MORE 'Of course it will hurt the average American most'. Ms Furno said the 30 per cent rate threatened by US President Donald Trump would have pushed Cashel products off US shelves. Leo Cummins, of Hazelbrook Confectionery in Co Kildare, decided earlier this year to shun the US market due to the uncertainty. On hearing the news of the agreement, he said he was even more convinced that ignoring the US market in the short term was 'the right thing to do'. 'Obviously one has a concern that the deal as it stands looks quite lopsided in favour of the US,' he says. Leo Cummins of Hazelbrook Confectionary in Newbridge, Co. Kildare. Photograph Nick Bradshaw 'I personally think that American candy sales will decline in Ireland, the UK and Europe over the next three years as consumer sentiment towards America becomes more negative. 'Whilst it appears that there will be no tariffs on US candy imports into Europe, American candy manufacturers will have to pay extra for their cocoa and other ingredients that are not produced in America and that will push their costs higher and hence their prices to European customers.' Mr Cummins says more expensive US confectionery will open doors for Hazelbrook in the UK and Europe as importers there will look to find cheaper alternatives. Whiskey manufacturers were particularly concerned at the possibility of trade talks failing. Brendan Carty, of Killowen Distillery in Co Down, will now have to contend with two different trade deals – the EU deal at 15 per cent and the UK one at 10 per cent. As Irish whiskey is bottled and bonded on both sides of the Border, it presents new headaches for the likes of Killowen. 'If a distillery sells 50 per cent distilled in Killowen and 50 per cent distilled in the Republic, I suppose our tariffs will be complicated and will fall between the two,' says Mr Carty. 'That's the nature of navigating a global market. It's always changing and very complex. It's the consumers who will take the hurt in the end. 'It's always a navigation exercise working things out with overseas partners, part and parcel of the business, so we won't get too upset about it'. The Irish Whiskey Association still hasn't ruled out the chance that the agreement could yet see the return of 'zero-for-zero' trade in spirits. Director Eoin Ó Catháin says the 10 per cent rate currently being applied, along with a weakened US dollar, has forced some operators to shut their doors. 'We are hopeful that, as we learn more about this deal and discussions on its implementation continue, a mutually beneficial arrangement and the removal of tariffs can be secured,' he says. The overriding sentiment from many exporters is that the deal represents an unwanted regression. With no upsides for Irish businesses – other than avoiding even worse terms – it is the new price of doing business with the US.
