In today’s Bulldog wrapup of technology news:
- Tesla’s losses mount
- Time Warner invests in Hulu
- Nobel Prize winner dies
- Nokia takes a loss
- Siemens orders surge
- Tesla loss grows as it falls short of sales goals
Electric car maker Tesla Motors Inc. ended its turbulent second quarter with a larger-than-expected loss but said it remains on track to increase production in the second half of this year and introduce a new car in 2017.
Tesla’s second-quarter loss grew nearly 60 percent to $293 million as it delivered fewer vehicles than planned. The company produced 18,345 vehicles during the April-June period, a quarterly record, but many were produced so late in the quarter that it delivered only 14,402, which was short of its goal.
“Basically, we were in production hell for the first six months of this year,” Tesla CEO Elon Musk said Wednesday in a conference call with analysts.
Musk said issues with suppliers were among the reasons for the agonizing ramp-up in production for the Model X SUV, which went on sale last fall. Complicated parts, like the SUV’s gull-wing doors and free-standing second-row seats, were also issues.
Tesla’s second-quarter loss, of $2.09 per share, compared to a loss of $1.45 per share in the same quarter a year ago. The 13-year-old company has only reported one profitable quarter, in 2013.
Revenue rose 33 percent to $1.27 billion. Tesla said the average price of its new Model X SUV is more than 15 percent higher than the Model S sedan.
Tesla’s shares slipped 29 cents to $225.50 after-hours trading.
- Time Warner invests in Hulu in win for cable cord-cutters
In another win for cable cord-cutters, Time Warner has become the latest media company to invest in streaming service Hulu.
The move could boost the viability of an online TV service that Hulu is expected to launch next year as an alternative to cable TV.
Sony and Dish already operate online TV services, while Apple has expressed interest in one, according to published reports. None of those companies, however, have the networks themselves as full partners or owners the way Hulu does.
Time Warner Inc., which owns HBO, TNT and TBS, took a 10 percent stake in Hulu for $583 million in another step blurring the lines separating cable TV from internet video services. Hulu’s other stakeholders already include the parent companies of ABC, Fox and NBC — Walt Disney Co., 21st Century Fox and Comcast’s NBCUniversal.
Time Warner said Wednesday that its networks — including TNT, TBS, CNN, Cartoon Network, Adult Swim, truTV, Boomerang and Turner Classic Movies — will be available live and on-demand as part of Hulu’s upcoming online TV service.
- Egyptian chemist Zewail, Nobel prize-winner, dies at 70
Ahmed Zewail, a science adviser to President Barack Obama who won the 1999 Nobel Prize for his work on the study of chemical reactions over immensely short time scales, has died at age 70.
Zewail’s death on Tuesday was announced by the California Institute of Technology in Pasadena, Calif., where he was Linus Pauling professor of chemistry and director of the Physical Biology Center for Ultrafast Science and Technology.
Zewail was born in Egypt and lived in San Marino, a wealthy suburb of Los Angeles. Caltech had no information on cause of death or where he died. Egyptian media reported that it was in the United States.
Over nearly 40 years at Caltech, Zewail and his students pioneered the field of femtochemistry, the use of lasers to monitor chemical reactions at a scale of a femtosecond, or a millionth of a billionth of a second.
Using Zewail’s techniques, scientists can observe the bonding and busting of molecules in real time. The research could lead to new ways of manipulating chemical or biological reactions as well as faster electronics and ultra-precise machinery.
- Nokia makes loss on low demand, costs of Alcatel-Lucent deal
Finnish telecom company Nokia Corp. reported Thursday a second-quarter net loss of 665 million euros ($738 million) due to weak demand for mobile networks and the costs of integrating its acquired competitor Alcatel-Lucent.
The wireless equipment maker said the loss compared with a profit of 347 million euros a year earlier, a figure that does not include Alcatel-Lucent in the accounts.
The combined net sales of Nokia and Alcatel-Lucent were 5.6 billion euros in the April-June period, compared with Nokia’s 2.9 billion euros a year earlier when it hadn’t yet merged with the French telecom gear maker. When comparing like-for-like businesses,Nokia’s revenue fell to 5.7 billion euros from 6.4 billion euros.
CEO Rajeev Suri said the company was now targeting cost savings of 1.2 billion euros in 2018, an upgrade to the earlier announced estimate of combined Nokia and Alcatel-Lucent synergies of 900 million euros.
- Siemens raises profit forecast as new orders roll in
German industrial equipment maker Siemens AG raised itsprofit forecast for the year Thursday as new orders jumped and quarterly profits beat expectations.
The company said earnings per share for the current business year would rise to 6.50-6.70 euros, up from the previous forecast for 6.00-6.40 euros.
The company, which makes trains, wind and gas power generation equipment and medical imaging devices, said new orders — a key indicator of future profit — grew 6 percent to 21.1 billion euros ($23.6 billion).
Siemens shares rose 2.9 percent to 99.63 euros in morning trading in Europe.
CEO Joe Kaeser said the company is making progress in streamlining its multiple businesses and increasing its profit margin, which rose to 10.5 percent from 9.8 percent in the same quarter a year earlier.