Merck puts $1bn into US production of cancer drug
Bengaluru — US drug maker Merck is investing $1bn in a new Delaware plant to expand its domestic production as it prepares to deal with President Donald Trump’s tariffs, the Wall Street Journal reported on Tuesday.
The new facility will produce biologic drugs and an easier-to-use version of Keytruda, becoming the company’s first in-house US site to make the blockbuster cancer treatment, the report said.
Merck said last week its biggest tariff exposure is through Keytruda and it has enough US inventory for this year. It estimated $200m in additional costs for the levies implemented to date.
The company expects the new facility to be able to roll out drugs by 2030, the WSJ report said, adding that it would create at least 500 on-site jobs and about 4,000 construction vacancies. Reuters
Porsche to up US prices if April tariffs remain
Frankfurt — Porsche will raise prices in the US later this year if tariffs implemented in April remain in place, the group’s finance chief said on Tuesday after presenting a major drop in first-quarter profit margins.
“If negotiations do not turn out to be successful and the tariff regime would stay as we see it today, we will definitely increase prices in the US to have some mitigating factors on our margin,” said CFO Jochen Breckner. Reuters
Hilton cuts 2025 room revenue growth forecast
Bengaluru — Hotel operator Hilton Worldwide Holdings cut forecast for 2025 room revenue growth at a time when US President Donald Trump’s sweeping tariffs sparked fears of a trade war and an economic recession.
American consumers are growing cautious about discretionary spending, especially big-ticket items such as travel.
The McLean, Virginia-based company now expects full-year revenue per available room (RevPAR), a key metric in the hospitality industry, to be flat up to 2%, compared to 2% to 3% previously. Reuters
Aerospace giant profits from strong demand for jets
Bengaluru — Honeywell’s first-quarter revenue and profit beat Wall Street estimates on Tuesday, as a shortage of new jets fuelled demand for its aerospace parts and aircraft maintenance services.
Shares of the industrial and aerospace giant rose 5.5% in premarket trading as the company also raised the lower end of its annual profit expectation.
Honeywell’s forecast, which accounts for the impact of tariffs and global uncertainty on demand, indicates confidence in its ability to cushion the hit, thanks to rising sales for firms that supply parts and provide jet maintenance services. Reuters
United Parcel Service wraps up solid first-quarter
Bengaluru — United Parcel Service reported a better-than-expected profit for its first quarter on Tuesday and said it will cut 20,000 jobs to control costs against a tough macroeconomic environment, sending its shares up 4% before the bell.
Trade tensions have prompted many companies to hold back on spending, which in turn has lowered the need for services between firms and hurt UPS’ performance in its domestic market.
The parcel giant said it was not providing any updates to its full-year outlook due to the economic uncertainty. Its first-quarter revenue fell to $21.5bn from $21.7bn a year ago. Reuters
Spotify’s Q2 profit forecast falls short, shares dip 8%
Bengaluru — Spotify forecast current-quarter operating profit below Wall Street estimates on Tuesday as it grapples with higher payroll taxes, taking the shine off its strong subscriber growth and sending the company’s shares down 8% before the bell.
The company’s efforts to boost profitability are being closely watched by investors after it benefited in recent years from price increases and cost-cutting initiatives.
Spotify’s March-quarter operating profit of €509m also missed estimates due to the higher payroll taxes tied to employee salaries and benefits in some countries.
The company forecast current-quarter monthly active users of 689-million, compared with the average analyst estimate of 684.9-million, according to data compiled by LSEG. Reuters
Atlas Copco expecting customer activity to weaken
Bengaluru — Swedish industrial group Atlas Copco on Tuesday reported a first-quarter operating profit below market expectations and said it expects customer activity to weaken somewhat in the short term.
Operating profit before items affecting comparability fell to 8.87bn Swedish crowns ($924.06m) for the January-March period, while analysts were expecting 9.36 billion on average, LSEG data showed.
Shares in the company were up 3.1% at 0911 GMT, after being roughly flat ahead of the report. Reuters
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