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Emirates airline announces ‘significantly’ lower $1.1 bn annual loss

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Emirates airline announced a "significantly reduced" annual loss of $1.1 billion dollars
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Emirates airline announced a “significantly reduced” annual loss of $1.1 billion dollars on Friday, down from $5.5 billion a year earlier, as pandemic travel restrictions ease.

Losses came in at 3.9 billion dirhams ($1.1 billion) in the 2021-2022 financial year to March, with revenues up 91 percent, as the airline expanded its global capacity and reinstated flights, Emirates said in a statement.

The carrier said it received a capital injection of $954 million from its owner, the government of Dubai, to help it survive the crisis.

“This year, we focussed on restoring our operations quickly and safely wherever pandemic-related restrictions eased across our markets,” said its chairman and chief executive, Sheikh Ahmed bin Saeed Al-Maktoum.

“Business recovery picked up pace particularly in the second half of the year. Robust customer demand drove a huge improvement in our financial performance compared to our unprecedented losses of last year and we built up our strong cash balance.”

Over the fiscal year, Emirates carried 19.6 million passengers, up by 197 percent from the same period the previous year.

“2021-22 was also a significant year as the UAE marked its 50th anniversary and hosted the world at Expo 2020 Dubai which generated increased global engagement and visitation to the UAE,” Sheikh Ahmed said.

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Honda yearly earnings solid despite chip crunch

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Honda expects net profit to remain steady in the current financial year
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Japanese auto giant Honda said Friday net profit rose 7.6 percent in the financial year to March, benefiting from strong motorbike sales and a weaker yen.

The company also expects net profit to remain steady in the current financial year, even as the global microchip shortage and virus-related supply chain disruption cause headaches for the car industry.

Honda said annual net profit rose 7.6 percent to 707 billion yen ($5.5 billion) in 2021-22 and issued a forecast of 710 billion yen net profit for the year to March 2023.

Sales last year were up 10.5 percent, it said, “due mainly to increased sales revenue in motorcycle business and financial services business operations as well as positive foreign currency translation effects.”

But “despite shifting to a recovery trend, the economic environment surrounding the company, its consolidated subsidiaries and its affiliates… continued to be difficult due to the impact of (the) semiconductor supply shortage, and increases in raw material costs, among other factors.”

Honda said its factories in Japan and overseas had been forced to suspend or reduce output due to supply chain and staffing issues related to Covid-19.

Toyota, the world’s top-selling carmaker, this week also posted a record full-year net profit, helped by strong sales and a cheaper yen.

The currency has touched 20-year lows against the dollar in recent weeks, inflating the value of Japanese automakers’ overseas profits.  Some analysts believe this will help them offset their current challenges.

In April, Honda said it will invest nearly $40 billion into electric vehicle technology over the next decade as it works towards switching all sales away from traditional fuel cars.

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Toshiba in early talks with 10 potential buyout ‘partners’

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Toshiba's moves are being closely watched in business circles
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Troubled conglomerate Toshiba said Friday it has been approached by 10 potential investors as it weighs going private, a move that would be highly unusual in corporate Japan.

The engineering giant was once a symbol of the country’s industrial prowess, producing everything from rice cookers to laptops and nuclear plants.

But more recently it has faced scandals, financial woes and resignations, while management and shareholders have clashed over buyout and spin-off proposals.

Despite the challenges, its earnings are growing, and on Friday Toshiba said annual net profit leapt 70 percent on-year, continuing a recovery from the painful lows of the 2010s.

Shareholders in March shunned a plan to split the company into two, stirring internal turmoil after a shock takeover offer from private equity fund CVC Capital Partners was dropped.

Toshiba said Friday it has been holding confidential, non-binding discussions with 10 “potential partners” who want to suggest “strategic alternatives” for its future.

That could include privatisation “to enhance the company’s corporate value”, the company said in a statement.

Potential investors must express interest this month, and Toshiba said it will announce the total number of interested parties before its next annual general meeting, which will be held by the end of June.

The situation is being closely watched in business circles for clues on what the future may hold for other huge, diversified conglomerates in Japan and elsewhere.

Any move by a foreign equity fund to take Toshiba private would likely face regulatory hurdles, because the company handles sensitive sectors such as nuclear power generation and defence equipment.

Annual net profit in the year to March jumped 70.8 percent to 194.7 billion yen ($1.5 billion) on “increased sales in all business segments, and increased operating income mainly from semiconductors and energy”, Toshiba said.

For the current financial year, the company expects operating profit to rise seven percent to 170 billion yen on projected sales of 3.3 trillion yen, down one percent. 

It did not issue an official net profit forecast.

Hideki Yasuda, senior analyst at Toyo Securities, told AFP that activist shareholders want to maximise short-term profits, so are pushing for Toshiba to take “steps to expand its earnings”.

However, a key problem is that “different activists are saying different things”, with some backing a buyout and others not, he told AFP ahead of the earnings announcement.

“Because they hold different visions, it’s difficult to devise a strategy with a common denominator.”

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Contemporary art to the metaverse: Takashi Murakami’s poppy trip

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Takashi Murakami's new show at the Gagosian in New York features a flowers NFT project that reinterprets the Japanese artist's iconic flower motif
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Takashi Murakami is known for blending pop art and Asian fine arts, but for his latest exhibition in New York, he is moving into the metaverse.

At the show “An Arrow Through History” that opened this week at Manhattan’s Gagosian Gallery, Murakami builds bridges from traditional fine arts to Japanese pop art to buzzy NFTs — the digital tokens that represent original artwork.

Murakami told AFP he is concerned that younger generations are screen-obsessed and “don’t understand the contemporary art history.”

“They can enjoy very few things, but with the plus of augmented reality, maybe the young people open their eyes more and then step into the contemporary art scene,” the 60-year-old Japanese artist said.

Of late, athletes, artists, celebrities and tech stars have been hawking NFTs, which use the same blockchain technology as cryptocurrencies.

“When I work on a creative production, I make no distinction between digital and analog,” Murakami said in a statement from Gagosian. 

“I’m always working in the context of contemporary art, and that context is all about whether I can be involved in events that manage to trigger a cognitive revolution.”

– ‘Into the metaverse’ –

In one piece, Murakami painted thick canvases and wooden structures the blue and white patterns of fish, inspired by Chinese porcelain vases dating back to the Yuan Dynasty (1279-1368).

Using Snapchat and an augmented reality filter, visitors can be immersed in the exhibition room via their phones, standing among digital images of fish that swim among the physically real works of art.

“Japanese culture originally came from the Eurasian continent, and my concept has been to go beyond from there into the metaverse, shooting through the history of art with a single arrow,” Murakami said in the statement.

The metaverse is an immersive virtual reality which is accessible with augmented or virtual reality glasses, and is a concept that has experienced a boost in recent years.

Stuck at home during the coronavirus pandemic, Murakami told AFP that “I was watching the reality in my house, so that was a very monumental moment.”

“For us it was getting super stressful every day, we could not go outside,” he said — but his kids could enjoy VR.

“That meant I had to change the mind, to fit in with the next generation of my kids,” he said. “This is my first answer — the show.”

Murakami is also set to open a special exhibition at The Broad contemporary art museum in Los Angeles, titled “Takashi Murakami: Stepping on the Tail of a Rainbow,” which will include immersive environments and run from May 21 until September 25.

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