Tag: Haier

Amazon closer to replacing humans with robots; Pizza Hut owners sue Korea HQ for $658K in fees; and that was a kidney — not a brain! — at an Aussie KFC

A news summary, focused on 10 big employers; updated 10:54 a.m.

Winning Amazon robot
Winning robot in an Amazon competition picked items off a shelf at a speed of about 100 per hour, much worse than the average 400 by humans.

AMAZON awarded a robotics prize to a team from the TU Delft Robotics Institute in the Netherlands and the company Delft Robotics in the retailer’s second-annual competition to find robots that will someday work alongside humans — or in place of them — in Amazon’s massive distribution centers. At the contest in Germany’s Leipzig, Delft’s robot picked items from a mock warehouse shelf at a speed of around 100 an hour with a failure rate of 16.7%. That’s slow compared to what a human can manage (around 400 items an hour), but a big improvement over last year’s winner, which managed just 30 items an hour. This was the second year for the competition (The Verge). Amazon employs 6,000 workers in the Louisville area at mammoth distribution centers in Jeffersonville, and in Bullitt County’s Shepherdsville.

PIZZA HUT: In South Korea today, another 25 franchisees filed a lawsuit seeking repayment of $657,553 the restaurant chain’s Korean national headquarters charged them for marketing and other services — fees the franchise owners said were unjustified. Their suit came a week after the Seoul Central District Court ruled in favor of 88 other owners who had asserted the came claim. The dispute dates to March 2007, when the headquarters demanded franchises remit 0.55% of their profits on grounds they’d benefited from marketing, operational, and customer-service counseling provided by the head office. In April 2012, headquarters boosted the fee again, to 0.8%, and required owners sign another contract agreeing to pay the charges. It also unilaterally nullified contracts with owners that either failed to pay the fee or delayed payment (Korea JoongAng Daily).

HAIER‘s appliances, electronics and ductless air conditioners were incorporated into one of Cocoon9’s container homes at last week’s Dwell on Design residential trade show in Los Angeles. The prefab “plug-and-play houses” contain smart technology, energy efficiencies and versatile spaces, delivered fully assembled with quality construction and high-end finishes within four months (Twice). Haier bought GE Appliances last month for $5.6 billion and its 6,000-employee Appliance Park in Louisville’s southend.

PAPA JOHN’S: In the U.K.’s Hull, Papa John’s is opening as many as four restaurants over the next year in the Kingdom’s next “City of Culture,” according to a shy franchise owner (the local newspaper says he “asked not to be named at this time”) who says the eateries could create as many as 25 jobs per location. They would be the city’s first Papa John’s (Daily Mail). All about the U.K.’s cities-of-culture program.

HUMANA is moving more than 120 employees in downtown Jacksonville, Fla., to two new separate locations as part of a broader effort to put sales and service workers in retail settings closer to members (Daily Record).

Rachel Rae
Rae

In New Zealand, a reformed “KFC queen” has gone public about her efforts to lose weight in a newspaper series the paper very awkwardly describes as being about a group “taking responsibility for their own health within a family-based, non-judgmental environment that supports all levels, sizes and ages.” Rachel Rae told the Taranaki Daily News: “I loved junk food, I loved fish and chips, and I was known as the KFC queen. I would go there about three times a week. Whatever was quick, filling and fattening — sounds gross eh?” (Daily Star).

In Japan, KFC is offering all-can-eat-in-45-minutes meals every Wednesday night between July 13 and Aug. 31, further expanding a special promotion once only offered on founder Colonel Harland Sanders‘s Sept. 9 birthday (Rocket News 24).

And in Australia’s Brisbane, KFC told diner Eden Hoffschildt that what she thought was a chicken’s brain cooked into in a recent meal was actually a kidney. “There is no health risk associated,” the fast-food chain said, in a reply to Hoffschildt’s Facebook posting about the incident. “The kidney is actually present in the thigh piece of chicken supplied by most leading Aussie chicken suppliers and can actually be found in cooked chicken bought from most leading supermarket” (Courier Mail). It was the second case in the past week of the wrong chicken part found in a Brisbane restaurant meal, and one of a series in recent years at other KFCs in Australia, the U.K., and the United States.

Australia’s nickname is Oz, which is another reason why this scene from the 1939 classic is so apropos:

In other and less gross news, tonight’s Mega Millions lottery jackpot is now an estimated $449 million. That would be the seventh biggest jackpot of all time, including the even better-known Powerball (WDRB). Blaming the Obama Administration’s energy policies, Murray Energy of Clairsville, Ohio, says it could lay off up to 4,400 coal miners by September in Kentucky, Ohio, West Virginia, Illinois, Utah and Pennsylvania (WDRB, too). In the year’s first three months, statewide coal employment plunged 18%, to 6,900 — lowest in 118 years (Herald-Leader). A 26-year-history of coal losses, county-by-county (WFPL).

Aetna to sell Medicare Advantage assets to appease trustbusters in Humana takeover; and UPS adding 300 customer pickup lockers

A news summary, focused on 10 big employers; updated 4:12 a.m.

HUMANA: Aetna has launched an auction to sell about $1 billion worth of Medicare Advantage assets as it seeks antitrust approval for its planned $37 billion acquisition of Humana. The Hartford insurer will accept bids as soon as next week, according to Reuters, which cited sources it didn’t identify. Wall Street has been less concerned about Aetna making it past antitrust regulators; on Thursday, Leerink Partners analyst Ana Gupte said she believed there was an 80%  chance of Aetna closing on its acquisition (Reuters).

UPS is installing another 300 lockers nationwide to make it easier for people to pick up packages. “UPS Access Point” lockers are usually outside of convenience stores and accessible 24 hours a day. The lockers, which began a staggered rollout last month, will initially be in Washington, Illinois, New York, Pennsylvania and Virginia (Seattle Times). AMAZON has had a similar locker program since 2011, where customers can select any location as their delivery address, and retrieve orders by entering a unique pick-up code on the Locker touch screen (Wikipedia).

KFC: In Corpus Christi, Texas, two KFC employees were hospitalized with second-degree burns after a fryer malfunctioned and hot oil spilled out and burned them from the waist up (KRIS). French news media company STP Productions is working on a story about KFC to be aired in September. Reporter Clementine Mazoyer and a cameraman recently visited founder Harland Sanders’ first restaurant at Corbin, Ky., then traveled to Kingston, N.Y., to interview franchise owner Darlene Pfeiffer, who says she personally new Sanders (Kingston Times).

HAIER: China’s largest home appliances maker will continue to be the company where different cultures thrive and innovate, an approach it will use at its newly bought GE Appliances business. Instead of sending employees to manage acquired foreign firms, Chairman Zhang Ruimin said Haier relies on local staff and focuses on how to effectively motivate them. Over the past decade, Haier has downsized by eliminating more than 10,000 middle-level manager jobs, aiming to transform itself into an incubator of innovators. “So far, we have 3,000 small teams that are working on innovative projects, and about 200 of them have raised funds from venture capital firms,” Zhang told the 2016 Tianjin Summer Davos meeting last week. Haier completed its $5.6 billion purchase of GE last month (China Post).

Bubba's 33 logoTEXAS ROADHOUSE is building one of its next Bubba’s 33 chicken and burger restaurants at the Midland Park Mall in Texas. The Louisville company had seven of the restaurants at the end of last year and plans as many as five more this year (Reporter-Telegram and Nation’s Restaurant News).

Louisville stocks inch back to pre-Brexit levels, and some even advance

Brown-Forman, GE, and Haier clawed back losses sustained in the days after Britain’s unexpected vote to quit the European Union a week ago today — and then some, based on today’s closing prices. All three are now above pre-Brexit levels.

Post-Brexit stock prices

But the other big employers in Boulevard’s Stock Portfolio are still in the red, with Ford the deepest: the automaker, which employs nearly 10,000 in the Louisville area, is still down 6% from its closing price June 23, when Brits went to the polls, but before results were known to Wall Street.

Louisville employer stocks jump again, as post-Brexit investor confidence rises; the Dow soars 285 points; and Walmart hits Amazon with free-shipping trial

A news summary, focused on 10 big employers; updated 6:18 p.m.

Brexit umbrealla
Clouds are parting.

Those employers’ shares closed higher today, as overall U.S. stocks clawed back half the ground lost after Britain’s surprise vote Thursday to quit the European Union. It was the second rally in two days on Wall Street, which had been rattled since Friday by uncertainty over the so-called Brexit. Britain’s stock market also has recouped losses in the same stretch, although other major markets in Europe and Asia have yet to bounce back fully, according to The Associated Press.

The three major U.S. stock indices all closed higher. The Dow Jones Industrial Average rocketed 285 points, or 1.6%; the S&P 500, 35 points or 1.7%, and the Nasdaq, 87 points or 1.9%, according to Google Finance.

Here are today’s closing prices for the 10 employers tracked by Boulevard:

In non-Brexit news:

AMAZON: Walmart today launched a free 30-day trial of ShippingPass, its two-day shipping program to all U.S. consumers, as the world’s biggest retailer ratchets up the competition with Amazon’s Prime subscription service. ShippingPass costs $49 a year, half as much as Amazon’s $99 (Reuters and press release). Also today, Amazon slashed prices up to 50% on newly released, full-featured, unlocked Android smartphones for Prime members (company website). Amazon employs 6,000 workers in the Louisville area, at distribution centers in Jeffersonville, and in Bullitt County’s Shepherdsville.

KINDRED: Senior Vice President John Lucchese sold 4,341 shares for about $11.39 a share today for a total $49,000, the company said in a Form 4 regulatory filing (SEC document). Kindred shares closed this afternoon at $11.43, up 5%.

GE: U.S. regulators rescinded stricter oversight of the company’s finance arm, GE Capital, after saying the conglomerate had made changes that significantly reduced its threat to U.S. financial stability (Wall Street Journal). Its former residential home appliance business, now owned by Haier Group, employs 6,000 workers in Louisville.

John Yarmuth
Yarmuth

In other news, U.S. Rep. John Yarmuth of Louisville has once more donated his entire congressional salary — $174,000 — to charity, making good on a campaign promise when he was first elected a decade ago. The 17 recipients include three arts and humanities groups: Louisville’s Fund for the Arts, Louisville Orchestra, and the Muhammad Ali Center (WDRB).

Louisville companies slammed again in Brexit fallout; Kindred falls 7% more, as Dow Jones plunges another 261 points

A news summary, focused on 10 big employers; updated 4:42 p.m.

Kindred headquarters
Kindred’s headquarters at 4th and Broadway; its shares got hit today.

The 10 big louisville employers tracked by Boulevard took it on the chin again, tumbling for a second consecutive day in the aftermath of Britain’s surprise vote to leave the European Union. Only one — Qingdao Haier, new owner of GE Appliances — gained ground, as major stock market indices fell hard. The Dow Jones Industrial Average closed at 17,140, down 1.5%; the broader S&P 500 index ended the day at 2001, off 1.8%, and the Nasdaq slipped below 4,600, or 2.4%.

Some of the losses didn’t make sense. Hospital and nursing home giant Kindred, with no discernible exposure to overseas turmoil, dove another 7%, to $10.49 a share — even steeper than its 3.9% drop on Friday. Volume was light: 767,818 shares vs. the average 837,761, suggesting little conviction among pessimistic investors; 1.1 million shares traded Friday. Still, Kindred was easily the worst performer of the 10 today:

June 27 stocks

Papa John’s, on the other hand, fell just 1%, to $65.82, after also declining 1% Friday. That’s despite the fact its biggest foreign market is the U.K., where it has 384 company-owned and franchised stores — 26% of all 1,505 outside the U.S., according to its annual report. In total, Papa John’s had 4,893 stores at the end of last year. The company’s top 10 foreign markets . . .

Top 10 Papa John's market outside U.S

. . . and the full list of all 37 overseas.

Today’s action came after Friday, the first day Wall Street could react to Brexit. The Dow plunged 3.4% to close at 17,400; the S&P fell 3.6% to 2,037, and the Nasdaq fell the most, 4.1% to 4,708. Here’s the latest news about Brexit, finance, and business.

In non-Brexit news, Papa John’s will donate 250 pizzas a day through Thursday to victims of recent devastating floods in the Elkview and Clendenin areas of West Virginia (WSAZ). At least 25 people are dead and several more missing after the disaster caused by heavy rains Thursday. Latest flood news.

Meanwhile, visits to fast-food restaurants — which had been growing at a quarterly clip of 2% since September 2015 — stalled in March, April and May, according to as-yet-unpublished data from market research firm NPD Group (The Wall Street Journal).

Better than money-laundering: GE Appliances’ new owner says hello to in-house innovation

A slowdown in its mainline white goods business has the new owner of GE Appliances, Haier Group, looking for fresh paths to growth.

“At the core of its revitalization push is a program to create in-house venture businesses that take advantage of talent and ideas that otherwise might not have seen the light of day,” says Nikkei Asia Review.

China’s biggest consumer electronics and home appliance company has established 180 such ventures over the past three years, the Review says. One of those ventures created through Haier’s incubation program makes Hello Kitty-themed washing machines.

Haier completed its $5.6 billion purchase of Louisville-based GE Appliances last week. The deal included 6,000-employee Appliance Park in the city’s South End. Another 6,000 work at other worksites.

Related: Japan’s Sanrio produces and licenses all things Hello Kitty. There are numerous blogs about Hello Kitty, some less reverential than others: Kitty Hell. And counterintuitively, she’s not a cat.

Photo, top: Hello Kitty Junkie.