BUSINESS IN ASIA TODAY - SEPT 2, 2009

Business in Asia on Sept 2, 2009. A summary prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, market intelligence and business opportunities:

PHILIPPINES' SAN MIGUEL POSTS US$178 MLN JAN-JUNE OP INCOME, UP 6%

MANILA - The Philippines' food and beverage giant, San Miguel Corporation (PSE:SMC) announced that the company posted an operating income of P8.7 billion (US$178.46 million) for the first half of 2009, six per cent higher compared to the same period last year. The majority of SMC`s businesses showed sustained revenue growth despite a general slowdown in the economy, bringing consolidated net sales to P84.9 billion this period, a six per cent improvement over last year. Consolidated net income of P55.6 billion ended substantially higher than last year's P19.7 billion.

HYUNDAI MOTOR AMERICA POSTS RECORD MONTHLY SALES IN AUGUST: REPORT

WASHINGTON - Sales of the Hyundai-Kia Automotive Group surpassed 100,000 units in the United States last month, an all-time record since its debut in the world's biggest auto market in 1986, the group said Tuesday. Hyundai Motor America and its affiliate Kia (KSE:00270) sold 60,467 and 40,198 vehicles each, buttressed by buyers favoring value brands above premium brands amid the worst recession in decades, said the South Korean auto group, which has emerged as the world's fourth biggest this year. The figures represent increases of 47 per cent and 60.4 per cent, respectively, from a year earlier. HMA and Kia's combined sales reached 527,653 vehicles this year. The combined U.S. market share of the Hyundai-Kia Automotive Group was 7.3 per cent for the first seven months this year, up from 5.3 per cent on sales of 569,956 units last year.

DELAYED HARD-DRIVE DEAL TO LOP US$43 MLN OFF FUJITSU'S OP PROFIT

TOKYO - Fujitsu Ltd.'s (TSE:6702) fiscal 2009 operating profit will likely be reduced by four billion yen (US$43 million) now the planned sale of its money-losing hard-disk-drive business has been pushed back three months from the original timeline. Fujitsu had initially agreed to transfer the segment's domestic and foreign production facilities and sales offices to Toshiba Corp. (TSE:6502) on July 1. But the antitrust review process has been dragging on overseas, forcing the transfer to be postponed three times, most recently to October 1. The business saw losses on an operating basis of about two billion yen a month through June, incurring a loss of some six billion yen for the April-June quarter. Although the segment's profitability is improving thanks to a rebound in demand, it continues to lose one-two billion yen a month.

PHILIPPINE CONSUMER LOANS UP 13.1 PCT IN Q2 09 ON-YEAR

MANILA - The Bangko Sentral ng Pilipinas (BSP) on Tuesday reported that consumer loans of universal and commercial banks (U/KBs) and thrift banks (TBs) went up in the second quarter of this year. The BSP said that at the end of June, consumer loans of U/KBs and TBs reached P398.6 billion (US$8.2 billion), 3.3 per cent higher than the previous quarter's P385.8 billion and 13.1 per cent higher over year-ago's P352.5 billion. In particular, residential real estate loans accounted for the bulk of total consumer loans at 41.4 per cent, amounting to P164.8 billion followed by credit card receivables at 27.6 per cent, or P110.0 billion; auto loans were 21.6 per cent at P86.1 billion; and other consumer loans were 9.4 per cent amounting to P37.7 billion.

AUSTRALIA'S SEVEN NETWORK TO SPEND US$41 MLN ON BROADBAND IN PERTH

SYDNEY - Australian media company Seven Network Ltd (ASX:SEV) has announced it is to spend A$50 million (US$41.32 million) on a new wireless broadband network in Perth. Seven said its wholly owned subsidiary Vividwireless planned to establish a fourth generation (4G) wireless broadband network in the Western Australian capital by March next year. Perth was chosen as Vividwireless' launch location due to its rapid growth and current under-service by broadband infrastructure. Seven chief executive chairman Kerry Stokes said the 4G network would deliver a laptop user average speeds of four megabits per second (mbps) and a peak speed of 20mbps, up to 10 times faster than existing 3G networks.

SONY ADDING TO ITS STORE NETWORK IN CHINA

TOKYO - Sony Corp. (TSE:6758) is expanding its network of stores in China that feature only products from the electronics giant, looking to woo consumers while also securing profitability. Over the past year, the electronics manufacturer has added 50 per cent more Digital Workshop stores, which offer a wide range of Sony products from LCD televisions to digital cameras. It now has 145 Digital Workshop locations, 530 Vaio personal computer stores and 200 sites selling its Cyber-shot and other digital cameras. Plans call for the addition of 20 Vaio stores in the near future.

CHINESE INDUSTRY ASSN COMPLAINS ABOUT U.S. BROILER MEAT IMPORTS

BEIJING - The China Animal Agriculture Association has appealed to the Ministry of Commerce (MOFCOM), claiming the large volume of U.S. broiler meat imports and their comparatively lower prices have disrupted the Chinese poultry market, reported Wednesday's China Daily. The association, representing 20 large-scale broiler meat companies whose annual output accounts for more than 50 per cent of the total, is worried about losing market share to the U.S. Trade remedy measures under consideration, if enacted, will be the first trade remedy deal that China has launched in the agriculture industry and will seriously reduce the U.S. broiler exports. In 2008, the U.S. sold 584,300 tonnes of broiler meat to the Chinese market, accounting for 20 per cent of its exports. In 2008, China's broiler meat was 659 yuan (US$96.49) lower than US im

INDIA'S EXPORTS DROP 28.4 PER CENT IN JULY ON-YEAR

NEW DELHI - India's exports dropped 28.4 per cent in July for the tenth straight month, even as the Planning Commission on Tuesday foresaw a recovery next year when demand returns in rich nations. The only solace in July was that imports too fell 37.1 per cent, narrowing the trade deficit to US$5.99 billion or nearly half from US$12.15 billion a year ago. Merchandise exports amounted to US$13.62 billion as demand continued to remain depressed. To prop up the sector, the government in its new Foreign Trade Policy has announced incentives for trade with new markets in Latin America and Africa, which by and large remained insulated from the global crisis.

FIJI'S RESERVE BANK ANNOUNCES REMOVAL OF CREDIT CEILING

SUVA - Fiji's central bank has lifted a credit ceiling imposed on commercial banks in the wake of the 2006 coup. The Reserve Bank Board met on August 27 and decided to remove the credit ceiling, effective from 1 September, implemented to prevent capital flight in light of the political developments, said Reserve Bank of Fiji (RBF) Governor Sada Reddy. Foreign reserves had now improved to comfortable levels, so the Board decided to remove the credit ceiling and assist with the recovery of the economy. The bank said guidelines given to commercial banks in relation to the priority sectors will remain in place. Foreign reserves are currently around F$920 million.

INDONESIAN MIGRANT WORKERS' REMITTANCES AT US$9.9 BLN PER YEAR

SERANG - Some six million Indonesian migrant workers abroad are sending a total of about Rp100 trillion (US$9.9 billion) home a year, making them the country`s second largest foreign exchange earner after oil and gas, a manpower official said. National Agency for the Placement and Protection of Migrant Workers (BNP2TKI) head Jumhur Hidayat said on Monday migrant workers were doing a great service to their country because they helped to reduce unemployment, each of them was providing a living for an average of five family members, and having a "multiplier effect" on regional development. He said the government should treat migrant workers with high respect, from the time they depart, while they were working abroad until they return home.

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