Business Watch -- WSJ
July 12 2016 - 3:05AM
Dow Jones News
STAPLES
Retailer Names New North American Chief
Office-supply seller Staples Inc. on Monday named a new head of
its North American retail operations, the latest executive shift at
the company as it tries to evolve to meet consumer needs.
Staples named Steve Matyas, a 25-year veteran of its Canadian
business, as president of North American retail operations. Mr.
Matyas previously had served as president of Staples Canada since
July 2000. He was the first employee at Business Depot Ltd. in
Canada in March 1991. Staples acquired Business Depot in August of
1994.
Interim Chief Executive Shira Goodman said: "Realigning our
retail leadership will strengthen our position as we continue to
right-size our store network and evolve to meet the changing needs
of business customers."
--Brittney Laryea
THYSSENKRUPP
Company Confirms Talks With Tata Steel
German conglomerate Thyssenkrupp AG confirmed Monday that it is
in talks with Tata Steel Ltd. of India and other steel groups over
a potential tie-up, giving the strongest indication yet that the
German company would help drive a new wave of expected
consolidation in the beleaguered European steel sector.
Thyssenkrupp's announcement comes as European steelmakers are
kicking off a flurry of merger-and-acquisition activity to cope
with a protracted steel-capacity glut and a wave of inexpensive
steel imports from countries such as China.
"We have repeatedly emphasized that in this situation we believe
a consolidation of the European steel industry is necessary," a
spokeswoman for Thyssenkrupp said Monday. She cautioned that it was
still unclear "when and with whom" such a merger could
transpire.
In April, The Wall Street Journal reported that the two
companies had been holding high-level talks for more than a year
about combining their European steel operations.
--Christopher Alessi and Alex MacDonald
SEAGATE
About 6,500 More Jobs Will be Cut
Seagate Technology PLC said it is cutting about 6,500 jobs
globally, or about 14% of its workforce, less than two weeks after
it announced a reduction of 1,600 positions.
The company also increased revenue guidance for the fourth
quarter ended July 1 to about $2.65 billion from about $2.3
billion, citing strong demand for its hard-disk drives. Seagate
shares jumped 12.7% in after-hours trading to $27.15.
The latest restructuring moves are part of Seagate's "continued
consolidation of its global footprint across Asia, EMEA and the
Americas, " the company said.
The Cupertino, Calif., company is a top producer of drives that
store data in personal computers, a market that has declined as PC
sales dwindle.
--Josh Beckerman
DAIMLER
Car Maker's Results Exceed Estimates
Daimler AG reported higher earnings before interest and taxes in
the three months to the end of June, and confirmed its outlook that
earnings would "slightly increase" in the full year.
The Stuttgart-based company that owns Mercedes-Benz cars said
EBIT after adjustments for special items rose to EUR3.97 billion
from EUR3.76 billion a year ago.
--William Boston
AVNET
CEO Steps Down; Outlook is Lowered
Avnet Inc. said Chief Executive Rick Hamada has stepped down as
the electronics distributor further reduced its earnings outlook
for the recently completed quarter.
The Phoenix company named board member William J. Amelio interim
chief executive.
Mr. Amelio, 58 years old, was chief executive at
oil-field-services company CHC Group Ltd. from 2010 to 2015 and
chief executive of Lenovo from 2005 to 2009.
Christine Dotts, vice president of corporate communications,
said the company's board "believed that change in leadership was
needed to accelerate progress on Avnet's growth, drive a greater
sense of urgency and an enhanced focus on execution," adding that
Mr. Hamada "agreed to step down" as a result.
Mr. Hamada, also 58, had been CEO since 2011 and is leaving the
company's board of directors.
--Joshua Jamerson
(END) Dow Jones Newswires
July 12, 2016 02:50 ET (06:50 GMT)
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