Siemens Q3 operating profit rises 40 pct

July 29 (Reuters) – Cost cuts and a weaker euro helped German engineering conglomerate Siemens (SIEGn.DE) post a 40 percent rise in fiscal third-quarter operating profit to a better than expected 2.33 billion euros ($3.03 billion).

Siemens said sales in the three-month period to the end of June grew four percent year-on-yar to 19.2 billion euros, while new orders were up 22 percent at 20.9 billion. Both figures were also higher than in the January-March period this year.

A Reuters poll of analysts had estimated third-quarter total sectors profit — or operating profit — at 2.1 billion euros, new orders at 18.5 billion euros and sales at 18.6 billion euros.

BP in talks over sale of oil projects to TNK: BP

(Reuters) – BP is in talks with its Russian venture TNK-BP over the sale of a $1 billion package of oil projects in Venezuela, the Times newspaper said on Thursday.

The newspaper said, without citing sources, that the talks revolve around BP’s minority stakes in two exploration and production joint ventures in Venezuela with Petroleos de Venezuela, the country’s state-owned oil producer.

A BP spokesman dismissed the report as “rumors and speculation.”

Morgan Stanley and Royal Bank of Scotland are thought to be involved in the discussions with TNK-BP, the Times said, adding that no announcement is expected imminently and rival bidders could emerge for the assets.

BP’s outgoing chief Tony Hayward told the Times on Tuesday that TNK-BP “may well be looking” to acquire some of BP’s assets as part of a disposal program, but did not give details.

(Reporting by Karolina Tagaris; editing by Dhara Ranasinghe)

REFILE-UPDATE 1-Malaysian billionaire to privatise Tanjong

KUALA LUMPUR, July 29 (Reuters) – Malaysian billionaire Ananda Krishnan is set to buyout utilities and gaming company Tanjong Plc (TJPL.KL), the second of his listed firms in three days in a deal worth 4.4 billion ringgit ($1.38 billion), two sources with direct knowledge of the deal said.

Ananda’s Usaha Tegas investment vehicle will launch a bid for Tanjong on Friday at 20.50 ringgit per share for 53 percent of the 403 million shares not held, said the two sources who declined to identified as they are not authorised to speak to the media.

That is a 14.65 percent premium to the last traded price for Tanjong, in a move that comes after another Ananda vehicle launched a 662 million ringgit cash buyout for MEASAT Global (MTCB.KL) on Wednesday. [ID:nSGE66R0GY]

Analysts say Ananda’s plan is to restructure and recapitalise the companies as private firms in order to increase their profile and expand their businesses.

Reclusive tycoon Ananda has launched a slew of corporate deals over the past 12 months, relisting a part of his Maxis (MXSC.KL) telecoms company in November in what was Southeast Asia’s biggest initial public offering. [ID:nKLR501438]

He also privatised Malaysian pay-TV monopoly Astro All Asia Networks Plc in March after a loss-making expansion in Indonesia and India weighed on the company’s finances. [ID:nSGE62G085]

Usaha Tegas and other Ananda-linked associates currently own 47 percent of the electricity to gaming company, the sources said, with one adding that the gaming operations would be sold under the proposed deal.

Investment banks Standard Chartered (STAN.L) and RBS will provide 2.1 billion ringgit in funding to help finance the deal, a source said, and the move reflects Krishnan’s belief that the companies are undervalued.

Tanjong officials were not immediately available for comment.

Tanjong shares were suspended on Tuesday and the stock last traded at 17.88 ringgit. ($1=3.193 Malaysian Ringgit) (Additonal reporting by Saeed Azhar; Writing by David Chance; Editing by Dhara Ranasinghe)

China’s CIC fund 2009 net profit rises to $41.7 bln

July 29 (Reuters) – China Investment Corp, the country’s $300 billion sovereign wealth fund, increased its net profit last year to $41.66 billion from $23.1 billion in 2008, state television quoted the fund as saying.

CIC, founded in late 2007, made a positive return on its overseas investments last year of 11.7 percent, the television report said.

The fund made new overseas investments last year of $58 billion, it added. (Reporting by Sally Huang and Alan Wheatley; Editing by Ken Wills)

UPDATE 1-Gas Natural cautious on 2014 outlook after H1

MADRID, July 27 (Reuters) – Spanish power utility Gas Natural (GAS.MC) issued a cautious strategic outlook to 2010-2014 on Tuesday and plans to focus on cutting debt, after first-half results missed forecasts.

The company expects EBITDA growth to slow to 2012 from the double-digit first-half rise and wants to cut its debt to 15-16 billion euros in 2012 from 18.2 billion euros at the end of the first half.

Gas Natural said it would attempt to extract further value from its Fenosa unit, acquired in 2008, to fuel net profit to 1.5 billion euros in 2012 and about 2 billion in 2014, compared with 1.1 billion euros in 2009.

In Gas Natural’s first strategic plan since the company acquired Fenosa in 2008, the company said it had already achieved 98 percent of the 550 million euros of savings it targeted with Fenosa.

Gas Natural posted a 48 percent surge in first-half earnings before interest, taxes, depreciations and amortizations to 2.381 million euros, boosted by the full consolidation of Fenosa in April 2009, although this missed estimates by analysts for 2.40 billion euros.

Net profit rose 37 percent to 853 million euros, supported by the sale of gas generation and distribution assets but also missed forecasts for 917 million euros from a Reuters poll of seven analysts.

Strong electricity generation and Latin American activities offset weakness at Gas Natural’s gas and deregulated business to contribute to modest 3.8 percent pro-forma growth in first half EBITDA, which factors in the Fenosa acquisition.

(Reporting by Jonathan Gleave; editing by Simon Jessop)

Philippines says not raising deficit fcast further

July 27 (Reuters) – The Philippine government is not prepared to further raise the target for the budget deficit in 2010 and nor does it plan to seek a supplementary budget, Budget Secretary Florencio Abad said on Tuesday. The government, which took office on June 30, earlier this month raised the forecast for the 2010 budget deficit to 325 bilion pesos ($7.1 billion), a record in nominal terms.

As a percentage of gross domestic product, the forecast was raised to 3.9 percent from 3.6 percent, to be equal to 2009′s level.

The government has said it plans to cut the deficit to 2 percent of GDP by the end of 2013. ($1=45.9 billion) (Reporting by Rosemarie Francisco; Editing by John Mair)

UPDATE 1-Verbund H1 earnings fall, outlook stable

VIENNA, July 27 (Reuters) – Austrian utility Verbund (VERB.VI) said low water supplies and weaker electricity demand hit first-half earnings, although electricity prices were improving and full-year profits should remain stable.

Verbund, which is 51-percent owned by the state, said it still plans to raise 1 billion euros ($1.3 billion) in a capital hike and this would happen in the fourth quarter at the earliest. The plan has been complicated by government infighting.

Verbund, which generates most of its electricity from hydro power, said net profit for first half fell 42 percent to 210.3 million euros ($271.5 million)

“Of particular detriment to the half-year results was the water supply from rivers, which was well below average,” Verbund said, adding, however, that prices on electricity markets were improving and its second half should be better.

Verbund said it expects a 25 percent fall in full-year operating earnings but stable profits compared with a year earlier. It said its dividend ratio would be 45-50 percent. ($1=.7746 Euro) (Reporting by Sylvia Westall; editing by Simon Jessop)

JFE says no plans to raise JSW stake further

July 27 (Reuters) – JFE Steel Corp, the world’s fifth-biggest steelmaker, said it had no plans to further raise its stake in India’s JSW Steel Ltd (JSTL.BO) above 14.99 percent.

JFE announced earlier that it would spend about $1 billion for a 14.99 percent stake in India’s JSW Steel. [ID:nTOE66Q02R] (Reporting by Yuko Inoue)

Virgin Active mulls sale or flotation: report

(Reuters) – Virgin Active, the British health and fitness chain, has met a series of private equity suitors over a possible sale of the business that could net over 1 billion pounds ($1.53 billion), The Sunday Telegraph reported.

The newspaper said the 187-club firm, 76 percent owned by Richard Branson’s Virgin Group, is in the early stage of talks with potential buyers and has not yet launched a formal auction process.

It said the gym chain is also continuing to work on a potential flotation but plans have been hampered by stock market volatility.

It said private equity firms, including Kohlberg Kravis Roberts & Co (KKR.N), Blackstone (BX.N), Advent and CVC CVC.UL, could be interested in bidding for Virgin Active.

A spokesman for Virgin Group declined to comment.

($1=.6544 Pound)

(Reporting by James Davey; editing by Karen Foster)

Virgin Active mulls sale or flotation -paper

July 25 (Reuters) – Virgin Active, the British health and fitness chain, has met a series of private equity suitors over a possible sale of the business that could net over 1 billion pounds ($1.53 billion), The Sunday Telegraph reported.

The newspaper said the 187-club firm, 76 percent owned by Richard Branson’s Virgin Group, is in the early stage of talks with potential buyers and has not yet launched a formal auction process.

It said the gym chain is also continuing to work on a potential flotation but plans have been hampered by stock market volatility.

It said private equity firms, including Kohlberg Kravis Roberts & Co (KKR.N), Blackstone (BX.N), Advent and CVC [CVC.UL], could be interested in bidding for Virgin Active.

A spokesman for Virgin Group declined to comment. ($1=.6544 Pound) (Reporting by James Davey; editing by Karen Foster)

U.S. Treasury selling more Citigroup shares

July 23 (Reuters) – The U.S. Treasury department said on Friday it will sell another 1.5 billion Citigroup Inc (C.N) common shares as it whittles down a 27 percent stake acquired during the financial crisis.

Treasury said it sold 2.6 billion Citigroup shares in two previous sales and received about $10.5 billion. It still owns 5.1 billion shares and intends to keep selling them “in an orderly fashion.” (Reporting by Glenn Somerville; editing by Jeffrey Benkoe)

Ericsson Q2 core profit below forecast

July 23 (Reuters) – Ericsson, the world’s number one mobile network gear maker, posted second-quarter core operating profit below expectations on Friday and said operators in some markets remained cautious in making investments. Operating profit, excluding joint ventures and restructuring costs, was 5.3 billion Swedish crowns ($715 million) against a forecast of 5.8 billion in a Reuters poll of analysts and 6.1 billion in the year-ago period. [ID:nLDE66E10B]

Sales were down 8 percent year-on-year at 48 billion crowns versus a forecast of 50.5 billion.

On Thursday, rival Nokia Siemens Networks [NSN.UL] reported sales down 5 percent in the quarter. [ID:nSAT008682]

SSAB misses Q2 profit fcast, sees recovery slowing

July 22 (Reuters) – Swedish specialty steel maker SSAB (SSABa.ST) undershot expectations for pretax profit in the second quarter on Thursday and said a recovery in the steel market would continue next quarter, but at a slower pace.

Pretax profit in the period came in at 624 million Swedish crowns ($84.24 million), below a mean forecast of 696 million crowns and compared to a year-ago loss of 1.1 billion.

Verbund capital raising hit by govt tussle -paper

July 20 (Reuters) – Austrian utility Verbund’s (VERB.VI) plan for a capital raising of around 1 billion euros ($1.3 billion) could be delayed because of a government disagreement over whether to take part, a newspaper said on Tuesday.

Verbund, which is 51-percent owned by the Austrian state, said last month the government backed the planned capital increase and would participate in the issue with around 500 million euros, corresponding to its share in the company.

However, daily Der Standard reported that the Social Democrats, partner in Austria’s coalition government, would vote against participation in the capital raising at a government session on Tuesday.

Verbund was not immediately available for comment.

The Social Democrats want similar capital-boosting measures at other companies in which the state owns stakes, such as energy group OMV (OMVV.VI) and Austrian railway OeBB, Der Standard said.

The capital increase would be used to bring down Verbund’s debt, which grew last year after a 2 billion euro spending spree. [ID:nLDE65T04H]

Economy Minister Reinhold Mitterlehner, from the coalition’s conservative People’s Party, hopes to find a solution before the government’s next meeting on Aug. 24, the paper reported.

The Social Democrats and conservatives have ruled together since 2008 in a mostly stable broad-based coalition. ($1=.7706 Euro) (Reporting by Sylvia Westall; editing by Simon Jessop)

Husqvarna Q2 operating earnings just beats fcasts

July 20 (Reuters) – Garden and construction tool maker Husqvarna (HUSQb.ST) posted second-quarter operating earnings just above forecasts on Tuesday and said it expected higher shipments in the third quarter from a year ago.

The company reported an operating profit of 1.3 billion Swedish crowns ($176.9 million) versus a year-ago 1.1 billion and a mean forecast of 1.2 billion in a Reuters poll of analysts.

During the first quarter 2010/11, Alstom`s Sales Showed Resilience, Whilst Orders Were Impacted by a Lack of Large Projects

During the first quarter of 2010/11 (from 1 April to 30 June 2010), orders
booked by Alstom (Paris:ALO) amounted to €3.1 billion. Sales, at €4.7 billion,
were slightly down as compared to the same period of last year1.

Power received orders of €2.0 billion during the first quarter. The lack of
large projects was partly offset by the resilience of small and medium-sized
contracts, particularly in service and retrofit. Transport registered €1.1
billion of new orders, including a major commercial success in Russia.

During the first quarter 2010/11, sales grew by 9% in Transport, whilst they
started to decline in Power, down 6% versus the first quarter 2009/10, as a
consequence of the order evolution over the last fiscal year in this Sector.

The total backlog remained stable at €42 billion on 30 June 2010, benefiting
from a €1.3 billion currency effect. It represented 27 months of sales.

Key figures

Actual figures 2009/10 2010/11 Variation Q1/Q1
(in € million) Q1 Q2 Q3 Q4 Q1 Act. Org.
Orders received 4,768 2,366 4,223 3,562 3,069 -36% -38%
Sales 4,806 4,877 4,691 5,276 4,743 -1% -5%

“This first quarter confirms the resilience of small and medium-sized contracts
in Power but, despite the busy tendering activity, the Group still faces
challenges to register large orders as customers continue to delay their
investments in new power plants. In Transport, the market remains sound,
offering a number of opportunities. Sales have grown in Transport, whilst, as
expected, they have started declining in Power, after the strong decrease in the
order intake of the last fiscal year “, said Patrick Kron, Chairman & Chief
Executive Officer of Alstom.

Sector Review2

Power

Order intake at €2.0 billion for the first quarter of the fiscal year 2010/11
showed a decrease of 35% versus the first quarter of last year. This evolution
reflects the challenging commercial environment for new equipment.

Thermal Systems & Products received small and medium-sized orders only in the
first quarter of the fiscal year 2010/11. The Thermal Services Business
registered a large number of projects for both retrofit and service, as well as
operation and maintenance contracts in Spain. In Renewables, the main orders
booked in the first quarter were for hydro contracts in the Americas, as well as
for wind turbines in Brazil.

Sales in Power, at €3.2 billion, decreased by 6% (-10% on an organic basis3) in
comparison with the same period of last year, due to the expected slowdown of
the turnover in Thermal Systems & Products.

Transport

Orders, at €1.1 billion in the first quarter of the fiscal year 2010/11,
remained sustained despite being down 37% as compared with the first quarter
2009/10, which included several large contracts in Europe and South America.

The main orders booked in the first quarter 2010/11 included locomotives in
Russia, as well as contracts in Sweden for suburban trains and maintenance.

In the first quarter of the fiscal year 2010/11, sales, at €1.6 billion, were up
by 9% (+7% on an organic basis3) compared to the same period of the last fiscal
year.

Key events of the first quarter 2010/11

On 20 May 2010, Alstom entered the solar market by investing $55 million in
BrightSource Energy Inc. This US privately-owned company specialises in
designing, building and operating tower-based solar thermal power plants.

On 2 June 2010, Alstom acquired Amstar, a coating services company in the United
States, which had sales of approximately $11 million in 2009 and employed 50
people. This acquisition strengthened Alstom`s service offerings with advanced
technologies that improve power plant component life.

On 7 June 2010, Alstom and Schneider Electric completed the transaction with
Areva for the acquisition of Areva T&D, its transmission and distribution
businesses, after obtaining the approvals of the relevant competition
authorities and the French Commission des Participations et des Transferts
(CPT). With this acquisition, Alstom created a third Sector, named Alstom Grid,
constituting the high voltage energy transmission business of the Group.
Alstom`s expertise in power generation combined with the capabilities acquired
in grid management positions the Group in the key market of Smart Grid.

On 19 June 2010, Alstom, Transmashholding and Kazakh Railways (KTZ) signed an
agreement for the creation of a joint company to manufacture electric
locomotives in Kazakhstan.

On 24 June 2010, Alstom inaugurated a new production facility in Chattanooga,
Tennessee, (USA) for steam and gas turbines, large turbo-generators and related
equipment for the North American fossil fuel and nuclear power generation
market. It will also retrofit existing steam turbines with leading edge
technology.

Financial situation

During the first quarter 2010/11, Alstom turned into a net debt position, due to
the financing of Areva Transmission for €2.3 billion, the payment of the
dividend for €364 million as well as the impact on the free cash flow of the low
book-to-bill ratio.

Outlook

The Group confirms that the operating margin for the two fiscal years 2010/11
and 2011/12 should be between 7% and 8%, based upon proper contract execution
and gradual recovery of demand.

***

Note 1: Orders and sales for Alstom Grid were not yet available on 30 June 2010
for release. The new Sector will be fully consolidated on 30 September 2010 in
the half year results and will account for four months.

Note 2: The reported figures by Sector are presented in appendix 1. A geographic
breakdown of reported orders and sales is provided in appendix 2. As for all
figures mentioned in this release, these are unaudited.

Note 3: i.e. excluding any currency & scope impacts. For this quarter, these are
mostly positive currency effects.

This press release contains forward-looking statements which are based on
current plans and forecasts of Alstom`s management. Such forward-looking
statements are relevant to the current scope of activity and are by their nature
subject to a number of important risk and uncertainty factors (such as those
described in the documents filed by Alstom with the French AMF) that could cause
actual results to differ from the plans, objectives and expectations expressed
in such forward-looking statements. These such forward-looking statements speak
only as of the date on which they are made, and Alstom undertakes no obligation
to update or revise any of them, whether as a result of new information, future
events or otherwise.

APPENDIX 1 – SECTOR BREAKDOWN BY QUARTER

2009/10 2010/11
Orders received Var. Actual Var. Organic
(in € million) Q1 Q2 Q3 Q4 FY Q1 Q1/Q1 Q1/Q1
Power 3,000 1,731 2,652 2,052 9,435 1,950 -35% -38%
Thermal Systems & Products* 1,414 435 1,837 604 4,290 405 -71% -72%
Thermal Services* 1,203 970 573 1,272 4,018 1,203 0% -5%
Renewables* 383 326 242 176 1,127 342 -11% -15%
Transport 1,768 635 1,571 1,510 5,484 1,119 -37% -39%
Alstom 4,768 2,366 4,223 3,562 14,919 3,069 -36% -38%

2009/10 2010/11
Sales Var. Actual Var. Organic
(in € million) Q1 Q2 Q3 Q4 FY Q1 Q1/Q1 Q1/Q1
Power 3,368 3,527 3,217 3,789 13,901 3,170 -6% -10%
Thermal Systems & Products* 1,766 2,010 1,803 2,167 7,746 1,574 -11% -14%
Thermal Services* 1,184 1,039 973 1,157 4,353 1,187 0% -5%
Renewables* 418 478 441 465 1,802 409 -2% -8%
Transport 1,438 1,350 1,474 1,487 5,749 1,573 +9% +7%
Alstom 4,806 4,877 4,691 5,276 19,650 4,743 -1% -5%

(*) Figures given for comparison and analysis purposes only

APPENDIX 2 – GEOGRAPHIC BREAKDOWN

Orders received by destination 2009/10 % 2010/11 %
(in € million) Q1 Contrib. Q1 Contrib.
Europe 3,232 68% 1,688 55%
North America 579 12% 485 16%
South & Central America 308 6% 308 10%
Africa / Middle East 83 2% 191 6%
Asia / Pacific 566 12% 397 13%
TOTAL 4,768 100% 3,069 100%

Sales by destination 2009/10 % 2010/11 %
(in € million) Q1 Contrib. Q1 Contrib.
Europe 2,457 51% 2,328 49%
North America 775 16% 645 14%
South & Central America 229 5% 308 6%
Africa / Middle East 824 17% 809 17%
Asia / Pacific 521 11% 653 14%
TOTAL 4,806 100% 4,743 100%

Press Contact
Philippe Kasse, Stéphane Farhi (Corporate)
Tel: +33 1 41 49 29 82 / 33 08
philippe.kasse@chq.alstom.com
stephane.farhi@chq.alstom.com
or
Investor Relations
Emmanuelle Châtelain
Tel: + 33 1 41 49 37 38
emmanuelle.chatelain@chq.alstom.com
Website
www.alstom.com

Copyright Business Wire 2010

Handelsbanken Q2 op profit just misses forecast

July 20 (Reuters) – Sweden’s Handelsbanken (SHBa.ST) reported a slightly worse-than-expected operating profit in the second quarter on Tuesday though loan losses came in lower than forecast.

Handelsbanken said operating profit was 3.5 billion crowns ($476.2 million) in the second quarter against a forecast for earnings of 3.6 billion in a Reuters poll.

That compared with 3.4 billion a year earlier.

The bank’s net interest income of 5.1 billion crowns also missed a forecast for 5.3 billion seen in the Reuters poll.

UPDATE 1-Hungary rules out austerity to IMF/EU, markets fall

BUDAPEST, July 19 (Reuters) – Hungary’s government insisted on a new financial sector tax this year and ruled out further austerity measures at talks with international lenders that were suspended at the weekend, the economy minister said on Monday.

The forint plunged about 2.7 percent in early trading on Monday to 289.70 versus the euro EURHUF=D2 after a review of Hungary’s funding agreement signed in Oct. 2008 fell through on Saturday when lenders said the new centre-right government needed to take tougher measures to rein in the budget deficit. [ID:nLDE66G0AP]

Government bond yields jumped 20-25 basis points after the open in illiquid trade.

Talks with the International Monetary Fund (IMF) and the EU ended prematurely on Saturday without concluding the country’s programme review.

This means Hungary will not have access to remaining funds of about 5.5 billion euros ($7.1 billion) in its 20 billion euro financing deal until the review is completed.

Even though the country is not under immediate financing pressure, it has been using the IMF/EU loan as a safety net this year so the lack of agreement risks damaging investor confidence. [ID:nLDE66I08V]

Economy Minister Gyorgy Matolcsy told public television m1 on Monday that the IMF and EU have voiced concerns over a 200 billion forint tax planned by the government to contain the budget deficit and a bill which would cut the central bank governor’s salary.

“Hungary has experienced a programme of austerity over the past five years, we inherited this from the previous governments and we would like to do away with the unfortunate consequences of these steps,” Matolcsy said.

“We have told our partners that further austerity packages were out of the question.” The IMF said in a statement on Saturday that Hungary will need to take additional measures to meet its deficit targets this year and in 2011, set out in its current financing deal and in line with the country’s obligations with the European Union.

In a separate statement, the European Commission said the reducing Hungary’s deficit by next year “will require tough decisions, notably on spending.”

Hungary’s new government has pledged to meet this year’s budget deficit target of 3.8 percent of GDP, which Matolcsy reaffirmed on television on Monday, but he said this should be done primarily with the help of the planned tax on banks.

“We will impose the bank tax, we know this is a significant extra burden but we also know that with this we can achieve the 3.8 percent deficit,” he said.

“It is either bank tax or austerity, these are the two ways of thought.”

For highlights of Matolcsy’s comments click [ID:nLDE66I07T]

(Reporting by Gergely Szakacs and Krisztina Than; Editing by Ruth Pitchford)

Green Business Forecast Shows Strong Growth Ahead

Our most recent green economy survey shows signs of steady growth in corporate environmental initiatives, a level of optimism that outstrips that of the overall recovering economy, according to the semi-annual “Green and the Economy” survey conducted by our GreenBiz Intelligence unit.

The two best pieces of news: Hiring continues to increase and company environmental budgets are growing.

Twice a year, we ask our 3,150-member GreenBiz Intelligence Panel for their views on key green economic indicators. Our most recent survey, conducted in late June and early July, garnered 483 responses, with 43 percent from companies with revenues of more than $1 billion (which we define as “large companies”). With four such surveys under our belts, we can now see clear trends in the green economy since the beginning of 2009.

Perhaps the biggest shift since our previous survey, in late 2009, is that the economic downturn is no longer driving most large companies’ environmental strategy. For companies with over $1 billion in annual revenue, the economic downturn has taken a backseat to growing customer requirements as the principal driver of corporate environmental strategy. For smaller firms, the economy still looms large.

Here’s what our most recent survey found:

The economy is no longer the green driver. A year ago, when we asked what was influencing companies most in terms of environmental issues, the answer was clear: It’s the economy, stupid. Forty-eight percent of all businesses and 40 percent of large businesses cited the economic downturn as having the single biggest impact on their environmental strategy. Today, for large businesses, this is no longer the case: Only 20 percent cite the economy as driving their green agenda, while 35 percent of large companies name customer requirements as having the largest impact and 25 percent identify company leadership as being the main driver. In fact, company leadership has steadily increased in influence: In early 2009, only half as many large companies — 12 percent — identified this as the major impact on their environmental strategy.

Smaller firms are still seeing the effects of the economic downturn. Of those with revenues under $1 billion, 47 percent still cite the economic downturn as having the greatest impact on their company in terms of environmental issues. For all companies, the impacts of carbon regulations as well as energy prices are viewed as negligible.

Next Page: The latest trends for spending, hiring freezes, top environmental initiatives and investment.

!–pagebreak– Spending continues its upward climb. At this point in 2009, only 63 percent of large companies said they would spend either the same or more than the previous year on environmental, health, and safety initiatives. This year, 84 percent of large companies say they are doing so. And 70 percent of companies with revenues under $1 billion report that their 2010 spending will either remain steady or increase over 2009.

Hiring freezes continue to thaw. Large companies, in particular, are increasing headcount for environmental and sustainability roles. In early 2009, 27 percent of large companies reported hiring freezes and only 8 percent planned to increase headcount for environmental departments. Today, only 11 percent report hiring freezes and over 28 percent plan to increase headcount, a major swing. This also represents a significant increase from just six months ago, when 23 percent of the large firms planned to increase headcount. The news isn’t quite as good for smaller firms: only 20 percent plan to hire for environmental and sustainability roles in the short term.

Energy efficiency remains job one. Reducing energy use through efficiency measures continues to be the primary environmental initiative for companies of all sizes. Thirty-four percent of large companies and 26 percent of smaller companies view energy reduction as their most important environmental initiative. It was a slightly different story six months ago, when 23 percent of those surveyed identified their highest priority initiative to be increasing investments in green product development while 22 percent cited energy efficiency. This shift doesn’t mark a decrease in green product investment, but rather a higher priority focus on cost savings.

Where large and smaller companies differ in terms of their key initiatives is their concern about “keeping green on the agenda.” While only 18 percent of large companies are concerned about continuing their green initiatives, 30 percent of smaller companies are trying to make sure green stays on the agenda. That likely reflects the fact that environmental initiatives have made deeper inroads in larger companies, so are no longer seen as optional or expendable. Most smaller firms haven’t yet reached this point.

Investments in innovation continue to grow. One area that has remained steady over the past year and a half is the high level of investments in green product development. Eighty-five percent of large companies report 2010 investments equal to or greater than last year’s, a number consistent for each of our previous surveys. This time, we also asked if companies have a formal strategy for product innovation. The result: 84 percent of large companies and 82 percent of smaller firms say they do. Those strategies are more prevalent among smaller firms. Sixty-nine percent of companies with revenues below $1 billion consider green as a key aspect of their innovation strategy, compared to 60 percent of large companies.

We’ll be taking a deep dive into the intersection of sustainability and innovation at our GreenBiz Innovation Forum, October 19-20 in San Francisco. For now, while the general economy may appear to stagger forward in fits and starts, our research shows a steady forward march in green innovation and investments.

John Davies is vice president of GreenBiz Intelligence, which provides independent and unbiased research regarding green strategies and business operation, and leads the GreenBiz Executive Network, a member-based, peer-to-peer learning forum for sustainability professionals.

Brunei investor eyes $1 bln bid for Club Med-paper

July 18 (Reuters) – Brunei investment firm BMB Group is considering a bid for Club Med (CMIP.PA) that would value the French-listed holiday firm at about 800 million euros ($1 billion), the Sunday Times reported.

BMB Group, an investment office that manages money for the Sultan of Brunei’s family, has the support of three of Club Med’s four major shareholders, the newspaper said, citing unnamed sources close to the situation.

Talks with the fourth and largest shareholder, Fipar, are expected to be finalised this week, it added.

Neither BMB Group nor Club Med could immediately be reached for comment. (Reporting by Mark Potter; Editing by David Holmes) ($1=.7706 Euro)