Meta profits swelled to gigantic proportions
The result of the social media giant Meta tripled in October-December compared to the corresponding period in 2022, the company said late Thursday evening Finnish time. The company's result exceeded market expectations.
Meta's operating profit in the last quarter of the year was around 14 billion dollars. The company's turnover increased by 25 percent compared to the previous year and was now about 40.1 billion dollars.
In December, an average of 3.19 billion people used the company's services every day.
For the whole of last year, the company made a profit of about 39.1 billion dollars. The increase compared to 2022 was 69 percent.
The value of Meta's shares started to rise by more than 12 percent in the aftermarket.
The results of Stora Enso and UPM collapsed
The shares of forest companies that announced their results for the end of the year on Thursday fell ugly on Thursday on the Helsinki Stock Exchange.
Stora Enso is starting a major new savings program to turn around its weak results. The goal is to obtain savings of approximately 80 million euros and reduce approximately 1,000 jobs. According to the company, there are no plans to close factories. The company's turnover fell by 24 percent in October–December last year to 2,174 million euros. The reported operating result fell to a loss of no less than 326 million euros. When excluding non-recurring items, the operative operating result was at least EUR 51 million plus.
UPM even showed an amazing earnings condition in the midst of a dark recession in the forest industry. The company's turnover did decrease by 22 percent in October–December to 2,531 million euros. Comparable operating profit halved to EUR 323 million, but its share of turnover was still at a good level of 12.8 percent.
The US central bank keeps the key interest rate unchanged
The US central bank decided on Wednesday to keep its key interest rate unchanged, as expected, because the increase in consumer prices, i.e. inflation, has not yet slowed down sufficiently.
The Open Market Committee, which decides on monetary policy, did not give a hint about when the key interest rate will be lowered. Instead, it states in its statement that it is waiting for more evidence that inflation will reliably slow down towards two percent.
In December, inflation accelerated to 3.4 percent in the United States, while it was 3.1 percent in November.
Microsoft is worth more than Apple
The turnover of the US technology giant Microsoft exceeded analysts' expectations in the last quarter of last year. The company said on Tuesday that one of the drivers of turnover was the increase in demand for operations based on artificial intelligence.
The company's turnover rose to approximately 62 billion dollars, or a good 57 billion euros. It is about 18 percent more than a year earlier in the same comparison period. According to analysts' estimates, Microsoft's turnover was expected to be in the range of 61 billion dollars.
Microsoft's development work has made it the world's largest technology company, overtaking Apple. Microsoft is estimated to be worth more than $3 trillion. The company's price per share has increased by 70 percent compared to a year ago.
Cargotec intends to list the container handling company
Cargo handling company Cargotec plans to list Kalmar, which specializes in container handling, as a separate company. The plan of the company's board is for Kalmar to be listed on the stock exchange in June.
Hiab, which specializes in vehicle load handling, would continue as part of Cargotec. For MacGregor, which specializes in sea cargo handling, Cargotec is looking for a new owner this year.
Last year was strong for Cargotec. Comparable operating profit for the whole year increased by 62 percent to 513 million euros, more than 11 percent of turnover.
The CEO of H&M is resigning
CEO of the Swedish clothing giant H&M Helena Helmersson resigns from his position. A new CEO has been named in his place Daniel Ervérthe company said on Wednesday.
Helmersson worked at H&M for 26 years, including the last four years as CEO. The company did not state the reason for Helmersson's resignation in its press release.
H&M's result in the fourth quarter of last year was slightly below analysts' expectations. In October–December, the company made an operating profit of approximately 4.33 billion kroner, or more than 380 million euros, the news agency Reuters reports. In addition, the company's sales in December and January decreased by four percent from the same time last year.
SRV's profitability improved at the end of the year
Construction company SRV's profitability improved at the end of last year. Overall, however, last year was dark for the company, especially due to the slowdown in housing construction. The company's turnover remained at the same level as last year in October–December. Turnover increased slightly to 181.8 million euros from 181.2 million euros the previous year.
The operative operating profit turned positive after the loss-making beginning of the year and improved to 2.4 million euros, while a year earlier it was 0.2 million euros. The operating profit also improved to 3.1 million euros, while it was a loss of 6.3 million euros a year earlier.
Inflation slowed down in the euro area less than expected
The increase in consumer prices, i.e. inflation, slowed down a bit in the euro area in January.
According to preliminary data from Eurostat, the European Union's Statistical Centre, inflation was 2.8 percent in January. In a survey by the news agency Bloomberg, economists estimate that inflation has slowed to 2.7 percent.
On the other hand, compared to December, prices fell by 0.4 percent in January.
Energy became cheaper in January by 6.3 percent compared to the same time last year. Unprocessed foodstuffs became more expensive by 7.0 percent, industrial products by 2.0 percent and services by 4.0 percent.
According to the price stability objective of the European Central Bank (ECB), inflation in the euro area should be two percent in the medium term. The slowdown in inflation in January is positive news for it, but an easing of monetary policy can hardly be expected in the next few months.
The EU Commission conducted a surprise inspection at Nokian Tires
The European Commission has started an investigation into possible violations of EU competition law by tire manufacturer Nokian Tires. The inspection is aimed at Nokian Tires' headquarters in Nokia, and it is unannounced, Nokian Tires said in its press release.
According to the Commission, on Tuesday it has started inspections in tire manufacturing companies in several EU countries. The purpose of the competition rules is to prevent cartels and actions related to the restriction of competition.
According to the news agency Reuters, the Commission has imposed fines on almost a dozen cartels in the automotive industry in recent years.
Elon Musk losing his Tesla bonus
CEO of the electric car company Tesla Elon Musk is about to lose his gigantic bonus package, threatening his position as the richest person in the world.
In the United States, a judge in the state of Delaware invalidated on Tuesday a compensation agreement worth about 56 billion dollars, or about 52 billion euros, that the electric car manufacturer Tesla granted to its CEO Musk in 2018.
If the verdict is upheld and the compensation plan is scrapped, Musk will lose the options for 303 million Tesla shares, which corresponds to almost 10 percent of the company, Financial Times tells.
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