Tag: Quarterly loss

  • Inventory shortage forces Pak Suzuki to extend motorcycle plant shutdown

    Pak Suzuki Motor Company (PSMC) has officially announced the extension of the shutdown of its motorcycle plant until June 16, 2023. The decision was conveyed to the Pakistan Stock Exchange (PSX) through a notice on Tuesday. The company attributed this action to ongoing government restrictions on imports, which have negatively impacted the automotive industry and resulted in a shortage of inventory.

    The notice stated, “Due to shortage of inventory level, the management of the company has decided to shut down motorcycle plant from June 12, 2023 to June 16, 2023.” However, the automobile plant will continue its operations as usual.

    Previously, PSMC had temporarily closed its motorcycle plant until June 10, 2023, due to a shortage of raw materials. Furthermore, both the automobile and motorcycle plants had experienced a shutdown from May 2 to May 9. Similarly, the automobile plant underwent closure from April 7 to April 28.

    As an assembler, manufacturer, and marketer of Suzuki cars, pickups, vans, 4x4s, motorcycles, and related spare parts, PSMC plays a crucial role in the automotive sector. The Suzuki brand, originating from Japan, holds prominence in the company’s product lineup.

    Earlier in April, PSMC reported its highest-ever quarterly loss of Rs12.9 billion for the first quarter of 2023. The decline in sales and substantial finance costs were cited as contributing factors. In comparison, the company had incurred a loss of Rs460.227 million during the same period last year.

    The auto industry in Pakistan is currently grappling with numerous challenges. Indus Motor Company Limited and Honda Atlas Cars, two other prominent listed companies, have also halted production in recent months due to economic hardships.

    The country’s auto sector heavily relies on imports, making it particularly vulnerable to the government’s import restrictions and the tightening of Letters of Credit iissuance. Furthermore, soaring finance costs and significant increases in car prices have dampened consumer demand.

  • Twitter blames Musk for $270 million Q2 loss

    Twitter blames Musk for $270 million Q2 loss

    The social media company’s latest quarterly earnings figures offered a glimpse into how the social media business performed during months-long negotiation with billionaire and Tesla CEO Elon Musk over whether he will take over the company.

    The company lost $270 million in the April-June period after revenue slipped 1 per cent to $1.18 billion, reflecting advertising industry headwinds, as well as uncertainty over Musk’s acquisition bid.

    The number of daily active users rose 16.6 per cent to 237.8 million compared with the same period a year before.

    Twitter chalked up the gains to “ongoing product improvements and global conversation around current events.”

    Twitter’s legal battle with Musk to fulfil his April promise to purchase the company for $44 billion has overshadowed its most recent sales figures. To close the deal, Twitter last week sued Musk, and now the two parties are preparing for a trial in October.

    Twitter announced that it wouldn’t hold its customary quarterly earnings conference call or publish a shareholder letter due to the impending acquisition.

    Beginning with the April 4 disclosure that Musk had purchased a sizable stake in the company, opening the door for his takeover bid later that month, Twitter experienced a turbulent three months during the April-June fiscal quarter. Shortly after Musk publicly tweeted his concerns about Twitter and its employees and gave the impression that he was reconsidering his position, the relationship quickly grew strained.

    Musk’s actions and his “repeated disparagement of Twitter and its personnel,” according to Twitter, created uncertainty that was bad for the company’s operations, staff, and stock price.

    Musk wanted to wait until next year due to the complexity of the case and his demands for more of Twitter’s internal data about how it counts fake and automated “spam bot” accounts, which he’s cited as a key reason for trying to terminate the deal. It called for an expedited trial so the company could continue with important business decisions.

    Before the opening bell on Friday, shares were reduced by 2 per cent.

    The trial was postponed this week by the judge, who agreed with Twitter that too much delay could harm the company irreparably. Unless Musk and Twitter resolve the case prior to that time, it will be heard in Delaware’s Court of Chancery, which hears numerous high-profile business disputes.

    On Friday, Elon Musk retaliated against Twitter for partially attributing its second-quarter revenue shortfall to the uncertainty surrounding the pending $44 billion acquisition of the Tesla CEO by the social media behemoth.

    “I’m rubber, they’re glue,” Musk tweeted. 

    According to Musk, Twitter is “in material breach of multiple provisions” of the agreement and “appears to have made false and misleading representations” when it accepted Musk’s acquisition offer on April 25.

    Musk announced last month that he would be terminating the agreement. Musk disputes Twitter’s internal estimates that less than 5 per cent of its users are made up of spam and fake accounts.