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	May 2, 2000	atimes.com

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Business in Asia Today

Japanese airlines to go head-to-head with trains
TOKYO - Japan's three major airlines, All Nippon Airways Co (TSE:9202), Japan Airlines Co (TSE:9201) and Japan Air System Co (TSE:9203), said Friday they plan to increase their domestic flight schedules in July and August to compete with trains for passengers in the busy summer vacation period. The move coincides with an increase in the number of landing slots at Tokyo's Haneda airport.

Hitachi, Toshiba, Fujitsu's profits all rise in FY99
TOKYO - Hitachi Ltd (TSE:6501), Toshiba Corp (TSE:6502) and Fujitsu Ltd (TSE:6702) all posted strong consolidated operating profits in fiscal 1999 thanks to higher semiconductor revenues and the success of restructuring efforts. Hitachi and Fujitsu both posted group net profits after losses in fiscal 1998. But Toshiba was hit by the second straight year of group net loss, due to the 100 billion yen-plus ($926.6 million) settlement of a suit in the US regarding the company's defective computer products.

Net profits slump 32% for Sony
TOKYO - Sony Corp (TSE:6758) said Friday group net profit for the fiscal year ended March dropped 32 percent to 121.8 billion yen ($1.128 billion), the second straight year of decline, after the strong yen pushed down sales. The yen's exchange rate appreciated by 15 percent against the dollar and by 25 percent against the euro in fiscal 1999, pushing down Sony's group sales by 764 billion yen ($7.18 bn) and group operating profits down 244 billion yen.

Fuji takes charge of struggling Chiba Koygyo Bank
TOKYO - Chiba Kogyo Bank (TSE:8337) said Friday it would become an affiliate of Fuji Bank (TSE:8317) after receiving a 25 billion yen capital injection from the city bank via a third-party share allocation. The regional bank will also apply to the Financial Reconstruction Commission for 60 billion yen ($563.9 million) in public funds in June. The move follows a "prompt corrective action" order issued by the Financial Supervisory Agency the same day after the bank's capital ratio had fallen to 0.45 percent at the end of March. Fuji is already the largest shareholder in Chiba Kogyo.

Korea's sovereign rating likely to remain
SEOUL - Moody's Investors Service is likely to maintain the country's sovereign rating at the present level of Baa2 for the time being, Moody's managing director Vincent Truglia said. He said Korea's present sovereign rating is appropriate and will likely not rise soon. Moody's raised Korea's sovereign credit rating by one notch to Baa2 in December last year, the second-lowest investment grade.

China Southern Airlines post profits of $1.6bn
GUANGZHOU - China Southern Airlines (NYSE: ZNH) (HKSE: 1055), the largest airline in the People's Republic of China, has posted an operating profit of about RMB13 billion ($1.57 billion) for the year ended December 31, 1999, up 12.2 percent over the previous year. Profit attributable to shareholders was over RMB 82 million and profits per share was RMB 2 cents.

iAyala signs Wap deal with Yahoo! Asia
MANILA - iAyala, a wholly-owned subsidiary of Ayala Corp Monday signed an agreement with Yahoo! Asia to provide a range of Wireless Application Protocol (Wap) services to Globe Telecom customers. Wap is a computer language that allows individuals to access the Internet through their mobile phone.

Bao Viet in medical insurance partnership
HANOI - The Vietnam Insurance Corporation (Bao Viet), the Asian Commercial Bank (ACB) and French medical and emergency aid firm, AXA Assistance, have forged a partnership to provide ACB credit card-bearers with overseas medical and emergency assistance. General manager of Bao Viet's Personnal Accident Department, Doan Van Tu said the scheme targets people with ACB-issued Mastercard or Visa cards residing or settled in Vietnam.

Saigon Port launches new container pier
HANOI - The future of Saigon Port is looking good following the beginning of operations of the affiliated container pier K21B in Tan Thuan wharf early last month, according to the port's general director, Tran Van On. This is the last pier belonging to the Saigon Port to have undergone comprehensive modernization. The pier boosts the port's handling capacity to 16 million tonnes a year. Saigon Port handled 8.3 million tonnes of goods in 1999, up 9.2 percent over 1998.

Indebted BCA back in business
JAKARTA - The Indonesian Bank Restructuring Agency (Ibra) ended its two years of control over Bank Central Asia (BCA) on Thursday. After being rocked by a run on deposits, BCA was taken over by the government in May 1998 and was put under control of Ibra for its large debts.

Delays up Bank Niaga's recapitalization costs
JAKARTA - The recapitalization cost of Bank Niaga (JSX:BNGA) is expected to soar to around Rp9.3 trillion ($1.23 billion) from an earlier estimate of Rp8.6 trillion. The Indonesian Bank Restructuring Agency said that a delay in the recapitalization of the bank had created an additional monthly loss of around Rp100 billion due to a negative interest spread problem.

ANZ banking earnings up 14% y-on-y
SYDNEY - ANZ Banking Group Ltd says it expects continued momentum in earnings growth in the second half of the year after Monday's reporting of a 14 percent rise in half year net earnings. "Our first half was good performance in a very difficult competitive interest rate environment," Chief Executive Officer John McFarlane said.

Iocom revenues to double to US$19m after buy out
PERTH - IT outsourcing and service provider Iocom Ltd says it has completed the acquisition of IT distributor MUA and its subsidiary MUA Services and Training. The acquisition is expected to increase Iocom's 2001 revenue by about A$25 million to A$32.56 million (US$19.02 million) and add A$1 million to EBIT for the period to take it to A$2.94 million.

Rasgas-Mobil, Gaz de France to get 10% of Petronet
NEW DELHI - Multinationals Rasgas-Mobil and Gaz De France are likely to get a 10 percent stake each in Petronet LNG as part of government efforts to finalize the equity structure of the company created to import LNG. A decision to include these two firms in the holding company will be taken next month at Petronet LNG's scheduled board meeting, company sources said. Under the proposal, Petronet LNG will be a consortium of Indian Oil Corporation, Gas Authority of India Ltd, Oil and Natural Gas Corporation, National Thermal Power Corporation, Rasgas-Mobil and Gaz De France with a 10 percent stake each in the company. The remaining 30 percent of the equity would be held by financial institutions and the public, the sources said.

Indian telecom giant records 30% rise in profits
NEW DELHI - India's state-owned telecom major Mahanagar Telephone Nigam Ltd (MTNL) has recorded a 30.5 percent increase in its net profit at Rs16.936 billion ($388 million) for the year ending March 31, 2000 as compared to Rs12.972 billion in the previous year. The company has also announced plans to commence its GSM cellular operations and set up a venture capital fund for IT and telecom in the current fiscal year. MTNL said it was planning to set up a research and development center and expand its activities beyond Delhi and Mumbai.

Lafarge's expansion continues in India
MUMBAI - French cement major Lafarge has acquired Raymond Cement, the Rs20 billion flagship company of India's Vijaypat Singahania Group, for Rs7.85 billion ($180m), subject to regulatory and other necessary approvals. This is the second major acquisition by Lafarge - a subsidiary of the French global construction materials major - in the cement sector, the earlier one being Tisco's 2 million tonne unit in eastern India last November.

Fiat to invest $120m to boost output in India
BANGALORE - Fiat India Automobiles Ltd planned to invests $120 million to increase the production capacity in its Kurla plant in Mumbai, a top company official said. The present capacity of 25,000 units of car would be increased to 50,000 or 60,000 units depending upon "development of the market", Enrico Ferrero, Director, Sales and Marketing, Fiat India Automobiles Ltd said.

Buy out makes Standard Chartered No 1 in Pakistan
KARACHI - Standard Chartered Bank (SCB) announced that it had acquired the ANZ Grindlays business in the Middle East and South Asia. The total consideration is approximately worth $1.34bn. The combination of two businesses will position Standard Chartered as the largest foreign bank in Pakistan. The deal is subject to the completion of the audit report and regulatory approvals from the authorities.

(Asia Pulse)

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