profits

Published on
25/06/2026 – 10:43 GMT+2

Micron, one of only a handful of companies able to make advanced memory chips at scale, said on Wednesday that revenue in the third quarter reached $41.4 billion (€36.5bn), more than four times the $9.3 billion (€8.2bn) it recorded in the same period last year.

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The figure also comfortably beat the roughly $35.7 billion (€31.4bn) analysts had forecast, while profit climbed even more dramatically.

The Idaho-based group posted net income of $28.24 billion (€24.9bn), or $24.67 per share, against less than $2 billion (€1.7bn) a year ago. Adjusted earnings of $25.11 a share sailed past the $20.49 expected.

The market reaction to the impressive results was immediate.

Micron shares rose more than 15% in after-hours trading to around $1,213, leaving the company valued at roughly $1.16 trillion (€1tn).

The stock has now climbed about 700% over the past year, one of the most dramatic re-ratings of any large company through the AI boom, reflecting a fundamental shift in the economics of the AI build-out.

The vast data centres being constructed by hyperscalers such as Amazon, Microsoft, Google and Meta, which have collectively earmarked hundreds of billions of dollars in capital spending this year, depend on enormous quantities of high-bandwidth memory, a specialised chip that sits alongside the processors made by Nvidia and others.

Micron has said its entire 2026 output of these chips is already sold out under fixed-price contracts.

According to CEO Sanjay Mehrotra, the results reflect what he called the strategic value of memory in the AI era.

The company pointed to a series of multi-year customer agreements that it expects to make earnings more durable and predictable, a notable claim in an industry long defined by brutal boom-and-bust cycles.

Margins to rival the biggest names

What has startled analysts most is Micron’s profitability.

The company reported a gross margin of around 85% for the quarter, a level that now rivals or exceeds those of far larger technology names such as Nvidia and Meta, an extraordinary position for a memory maker historically squeezed by volatile chip prices.

The tightness of supply, with new factories not expected to add meaningful output until 2028, has handed producers exceptional pricing power.

Micron’s guidance was more striking still.

The company expects revenue of around $50 billion (€44bn) in the current quarter and adjusted earnings of roughly $31 a share, implying the boom is accelerating rather than fading. It is ramping up investment to match, lifting planned capital spending to about $27 billion (€23.7bn) this fiscal year and signalling a further jump in 2027, management told analysts during the earnings call.

The results offer reassurance to investors betting that AI infrastructure spending remains robust, with Micron’s order book serving as a real-time gauge of that demand.

The open question, as ever in the memory industry, is how long the upswing can last before supply catches up. Even the most bullish observers acknowledge that risk has not completely disappeared.

June 15 (Asia Today) — Salt-damaged farmland once unsuitable for either agriculture or aquaculture has become a source of pension income for residents of islands in southwestern South Korea.

Shinan County in South Jeolla Province operates what it calls a “Sunlight Pension,” sharing part of the profits from solar power projects with local residents. The program is regarded as a social economy model that connects large-scale renewable energy infrastructure with household income and local spending.

The county began distributing the pension on Anjwa and Jara islands in 2021 under a renewable energy profit-sharing program. It has since expanded the program to Jido, Saokdo, Imjado and Bigeumdo.

Under the program, part of the profits generated by solar power projects is distributed to residents through local cooperatives.

South Korea’s Ministry of the Interior and Safety regards the Shinan program as a social economy model that converts local resources into resident income while keeping spending within the community. The program brings residents, local government and private businesses together to ensure that some profits from power generation remain in the region.

The model is also consistent with the national government’s initiative to create “Sunlight Income Villages,” where communities receive income from renewable energy projects.

Shinan County enacted an ordinance in 2018 establishing a system to share profits from renewable energy development with residents. Residents do not directly pay the cost of building the power plants. Instead, resident cooperatives participate in the projects and receive dividends from the resulting revenue.

The dividends are paid through local gift certificates, encouraging recipients to spend the money within Shinan County.

“Existing residents are guaranteed dividend benefits, while benefits for new residents vary according to age to encourage younger people to move here,” a county official said. “New residents age 40 or younger are eligible immediately, without a waiting period.”

The program has produced measurable results.

Renewable energy development dividends generated cumulative revenue of 24.71 billion won, or about $16.1 million, between April 2021 and April 2025. Of that amount, 22.32 billion won, or about $14.6 million, was distributed through the Sunlight Pension.

An additional 2.39 billion won, or about $1.6 million, was distributed as a Sunlight Child Allowance for residents younger than 18.

Of Shinan County’s 16,483 residents, 13,284 are members of participating cooperatives, representing a participation rate of 81%.

The Anjwa Solar City power plant serves as the foundation of Shinan’s Sunlight Pension model.

The facility has a combined generating capacity of 288 megawatts, consisting of a 96-megawatt first phase and a 192-megawatt second phase. The first phase began commercial operations in November 2020, followed by the second phase in January 2023.

Plant officials said the project cost about 560 billion won, or approximately $366 million. It generates annual revenue of between 80 billion won and 85 billion won, or roughly $52.3 million to $55.6 million.

The history of the site is also significant.

The land was originally used for farming but became unsuitable for both agriculture and aquaculture because of salt damage and years of use as fish farms. A 2019 revision to South Korea’s Farmland Act allowed salt-damaged farmland to be used temporarily for other purposes, clearing the way for the solar project.

The land is scheduled to be restored to farmland after the solar facilities cease operations.

Anjwa Solar City is considered a leading example of South Korea’s resident-participation renewable energy profit-sharing system. Large solar projects can generate local opposition when residents receive few tangible benefits, making the profit-sharing structure a central element in securing community acceptance.

The Shinan model, however, may be difficult to reproduce in every region. Large renewable energy projects require several conditions, including government approval, resident consent and access to transmission infrastructure.

Project profitability and local acceptance must also be considered to maintain a stable dividend system.

“The Sunlight Pension was designed to ensure that development profits remain with residents and circulate within the community,” the county official said. “We plan to expand the profit-sharing program beyond solar power to offshore wind and other renewable energy projects.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260615010005065

Published on 03/06/2026 – 11:31 GMT+2•Updated
11:36

The Spanish fashion giant behind Zara, Inditex, posted net income of €1.4 billion in the first quarter, up 5.4% year-on-year and ahead of market expectations.

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Sales rose 5.8% to €8.7bn, or 8.8% at constant exchange rates, ahead of the roughly 8% analysts had anticipated.

Gross profit rose 6.9% to €5.4bn, helped by an improvement in profit margins, meaning the company kept a larger share of revenue as profit. EBITDA, a measure of underlying earnings, increased 7.3% to €2.6bn.

Inditex shares rose more than 5% on Wednesday after the company reported a strong start to the second quarter, with sales increasing 11.5% between 1 May and 1 June, reassuring investors that the Zara owner remains resilient despite signs of weakening consumer spending.

“Inditex continued its strong momentum with its latest results beating first quarter expectations, and also seen a strong start to the second quarter too, as sales grew more or less in line with the rate the company exited with in the previous quarter,” said Mamta Valechha, consumer discretionary analyst at Quilter Cheviot.

The revenue jump from one of the world’s largest listed clothing retailers points to solid consumer appetite heading into the summer, despite concerns that a more uncertain economic and geopolitical backdrop could weigh on spending in the months ahead.

Navigating geopolitical risks

The results come as businesses around the world face growing uncertainty over the global economy and concerns that consumers may cut back on spending.

Inditex said its wide-ranging supply chain and flexible transport network had helped it keep products flowing to stores around the world despite recent disruptions.

“Ultimately, Inditex continues to have a resilient business model that can withstand significant economic pressures and currency headwinds,” said Mamta Valechha, consumer discretionary analyst at Quilter Cheviot.

Valechha said strong customer demand and the company’s ability to source products close to its key markets had helped it keep collections up to date while limiting the need for discounts. Productivity improvements had also helped protect profitability.

Inditex also said that the current “geopolitical challenges” had an impact on the sales in the Middle East, a region that Barclays estimates accounts for about 5% of its revenue.

The company also warned that ongoing instability in the region could affect its performance in the months ahead.

Inditex faces a number of other challenges, including higher shipping costs and rising prices for raw materials such as cotton and polyester. Currency movements are also expected to weigh on results this year.

Inditex ended the quarter with 5,456 stores and a net cash position of €10.8bn.

The board has proposed a dividend of €1.75 per share for the last fiscal year, comprising an ordinary component of €1.20 and a bonus of €0.55, payable in two instalments in May and November 2026.

Despite the strong start to the year, Inditex left its outlook unchanged. It said it expects sales growth to continue into the second quarter, supported by strong demand for its spring and summer collections and ongoing improvements to its stores and operations.

However, the company said currency fluctuations are likely to reduce sales growth by around 1% over the full year. It also expects to invest about €2.3bn in the business during the current financial year.

Published on
06/05/2026 – 15:39 GMT+2

The surge in jet fuel prices has become a primary concern for the European travel industry, with Lufthansa finding itself at the centre of this crisis.

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According to Lufthansa’s latest earnings report, the airline expects an additional €1.7 billion ($2bn) fuel cost burden in 2026 as soaring jet fuel prices continue to weigh on the industry.

The need to avoid certain airspaces has led to longer flight times, which naturally increases consumption. These adjusted routes also require more staff hours and higher maintenance cycles, adding layers of complexity to an already strained global supply chain.

As reported by Euronews, global airlines have already cancelled approximately 13,000 flights this May, while Lufthansa alone has axed 20,000 short-haul flights through to October in a bid to cut fuel consumption.

This reduction in capacity is a direct response to the unsustainable cost of operating older, less fuel-efficient aircraft during price peaks.

While Lufthansa has managed to stay profitable, the jet fuel price spikes have forced the firm to advise passengers to book their holidays as early as possible to avoid further surcharges.

The company is currently investing heavily in its “fleet modernisation” programme to mitigate these risks in the long term, though the immediate impact of fuel volatility continues to weigh on the balance sheet.

Lufthansa remains committed to its financial targets, but the volatility of the global oil market remains the largest variable in its 2026 outlook.

“We are satisfied with the first quarter […] at the same time, the current situation compels us to rigorously examine every lever available to reduce costs, improve efficiency and mitigate risks in order to maintain our ability to act decisively. Our annual profit will likely be lower than originally anticipated,” CFO Till Streichert stated.

The Lufthansa Group has announced a landmark financial performance, revealing that it generated the highest revenue in its history in 2025. Revenue rose by 5% compared with the previous year to €39.6 billion.

According to the latest figures, the airline group also saw its operating profit grow by 20% compared with 2024, highlighting a robust recovery in passenger demand.

In the first quarter of 2026, year-on-year revenue climbed 8% despite challenges linked to the conflict involving Iran, including €1.7 billion in additional costs caused by volatile jet fuel prices and the suspension of dozens of routes.

The firm kept its capacity broadly stable with slight growth in long-haul traffic compensating for capacity reductions in short and medium-haul segments.

Lufthansa Technik and Lufthansa Cargo also significantly contributed to earnings with demand for maintenance, repair and overhaul services increasing, as well as through the marketing of ITA Airways’ cargo space.

Global demand for air travel remains high and continues to prove resilient even in times of crisis, as Lufthansa Group again expects a strong summer travel season.

“In the first quarter, we significantly improved on the previous year’s financial results […] but the ongoing crisis in the Middle East, combined with rising fuel costs and operational constraints, poses enormous challenges for the world as a whole, for global air travel and for our company as well,” CEO Carsten Spohr stated.

“However, we are resilient in our ability to absorb these impacts. This applies both to our above-average hedging against fuel price fluctuations and to our multi-hub, multi-airline strategy, which provides us with greater flexibility in our route network and fleet development,” Spohr added.