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South Korean's decision willing to talk to North Korea is part of its plot to buy time so it can extend its nuclear weapons programme
North Korea Buying Time
South Korea decision willing to talk to North Korea is part of its plot to buy time so it can extend its nuclear weapons programme
Donald Trump has pledged to “take care” of Kim Jong-un’s ruthless regime but has not yet succeeded.
US Lieutenant colonel Ralph Peters said North Korea is “overconfident” and “not afraid” of Donald Trump's threat of military action.
Appearing on Fox News, Mr Peters said: “What the North Koreans are doing is, instead of just stupid rhetoric, they are trying something strategic.
“By initiating talks with the South Koreans via, perhaps participating in the winter games and then having follow-up talks after that, they are buying time.
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London: Teenager pleads guilty to spate of acid attacks in north and east London in July 2017
Metropolitan Police
A teenager who attacked six males with a corrosive substance in Newham, Islington, Haringey and Hackney in July 2017 has pleaded guilty at Wood Green Crown Court today, Monday, 8 January.
17-year-old Derryck John, of Thornton Heath, pleaded guilty to 12 charges.
They were:
Six counts of throwing a corrosive substance with intent to disable, maim, disfigure or do grievous bodily harm
Four counts of attempted robbery of a moped
Two counts of robbery of a moped.
On Thursday, 13 July 2017 between approximately 21:30hrs and 23:41hrs, police were called to six separate incidents of robbery or attempted robbery of mopeds.
- At 21:30 hours on Thursday 13 July on Penny Brook Street at the junction with De Coubertin Street [victim1] became aware of another scooter on his left hand side, described as a Yamaha with two people riding.He saw the pillion passenger raise his arm and felt a splash on his face. The victim immediately accelerated away along Penny Brook Street, pursued by the suspects. The pursuit continued on Penny Brook Street, Leyton Road, Windmill Lane and Leytonstone Road. From here he managed to lose the suspect vehicle which continued onto Forest Lane.
-At 22:25hrs police were called by the London Ambulance Service to Hackney Road, junction with Queensbridge Road, E2 to reports of a robbery. A 32-year-old man [victim2] suffered injuries to his face after two male moped riders threw a corrosive substance in his face and stole the moped he was riding. The two suspects then made off from the scene, one on the stolen moped.
- At 22:49hrs police were called to St Paul's Road, N1 in Islington, near the border with Hackney. A 44-year-old man [victim3] riding a moped had a corrosive substance thrown in his face by two males also on a moped. The two suspects left the scene empty handed.
- At 23:05hrs police were called to Shoreditch High Street, E8. A 52-year-old man [victim4] had a corrosive substance thrown in his face by two males on a moped. The victim was also riding a moped but the suspects again got away empty handed.
- At 23:18hrs police were called to Cazenove Road, N16 near junction with Upper Clapton Road. A 24-year-old man [victim5] was attacked in a similar way and nothing was stolen.
- At 23:37hrs a 33-year-old man [victim6] reported to police that he was on his moped in Chatsworth Road, E5 in traffic when two males on another moped pulled up alongside him and sprayed a liquid in his face. They stole his moped and made off. The victim made his way to his home address before contacting police.
All of the victims were taken to hospital; [victim2] and [victim5] continue to receive treatment for their injuries. The other victims’ injuries were not life-threatening or life-changing and they were all subsequently discharged.
Derryck John was arrested in the early hours of Friday, 14 July after a road traffic collision involving a suspected stolen moped linked him to the attacks. He was further implicated following a comprehensive investigation involving several witness enquiries and CCTV.
He will be sentenced on Friday, 9 March 2018.
DS James Leeks from Hackney CID said: “Derryck John did not think twice about using a life changing and even potentially life-threatening substance against those who resisted his robbery attempts. Acid attacks ruin lives and have no place in our society.
“It beggars belief that anyone would be prepared to scar someone for life and leave them to live with life-changing injuries for the sake of a phone or a moped. We are working hard to keep the public safe and make the streets hostile territory for criminals who steal scooters and use them to snatch valuables from members of the public. We have a particular focus on the small number of criminals prepared to use corrosive substances to do so.
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London: Euro (-0.27%) vs. Pound Sterling at £0.8820; mini govt. cabinet reshuffle!
Pound Sterling up, after a London govt. cabinet reshuffle alleviated a little of the political uncertainty that has pressured the UK currency in recent months.
UK PM Theresa May has kept her ‘loyalists’in her Cabinet in post in a reshuffle forced by the resignation of her former second-in-command Damian Green.
Downing Street confirmed Chancellor Philip Hammond, Foreign Secretary Boris Johnson, Home Secretary Amber Rudd, Brexit Secretary David Davis and Health Secretary Jeremy Hunt are all keeping their current jobs.
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Euro (-0.52%) lower vs. a higher US-Dollar at $1.1961 on rate hike hope in March
Daily High: $1.2052 <> Daily Low: $1.1955
Firm resistance zone around $1.20/$1.21. Changing sentiment to the US-Dollar?
On Friday and this Monday the US-Dollar strengtened versus the euro for another US Fed rate hike this March meeting. US Fed funds futures are pricing in a 60% chance for a quarter-point rate increase to 1.50%.
Comments from US Fed officials supporting rate hike also underpinned the currency. The US job market is overall strong, which makes it appropriate for a gradual increase in the fed funds rate at this point, Cleveland Fed President Loretta Mester told on Friday.
Speaking at an American Economic Association conference, San Francisco Fed President John Williams suggested that three rate hikes this year looks appropriate in the light of strengthening US economy.
US Non farm payrolls in the US increased by only 148.000 in December of 2017, below market expectations of a 195.000.
The major labor market indicators from the survey of households showed little or no change in December. The unemployment rate was 4.1 percent for the third month in a row, following declines earlier in the year. The number of unemployed people, at 6.6 million, was essentially unchanged over the month but was down by 926,000 over the year.
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Mercedes-Benz in 2017: Number 1 in the premium segment
• In 2017, Mercedes-Benz sold approximately 2.3 million cars worldwide, increasing its unit sales by 9.9%.
• The car division delivered a total of more than 2.4 million MercedesBenz and smart to customers last year.
• 2017 was the seventh consecutive record year for Mercedes-Benz and Mercedes-Benz Cars.
• All-time best unit sales in a year were achieved in the three core regions: Europe, Asia-Pacific and NAFTA.
• Market leadership was maintained in major markets Germany and the USA.
• With growth of over 25%, China was the market with the strongest absolute growth and the largest individual market for Mercedes-Benz.
First-time six-digit unit sales for AMG in its anniversary year with more than 130,000 cars sold (+33.0%). Today’s strong core business is the foundation for the mobility of the future.
Stuttgart – Mercedes-Benz achieved its most successful year of all time in 2017, increasing its unit sales by 9.9% to 2,289,344 vehicles. The car division’s growth last year was driven in particular by the new E-Class Saloon and Estate and the SUVs. As a result of its success in all three core regions – Europe, Asia-Pacific and NAFTA – Mercedes-Benz was the bestselling premium brand in the automobile industry for the second consecutive year. No other German automobile brand in the premium segment posted as strong growth as the Stuttgart-based company with the three-pointed star in 2017.
Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars: “Last year, Mercedes-Benz Cars delivered more than 2.4 million Mercedes-Benz and smart to customers all over the world. We thus surpassed our prior-year unit sales for the seventh time in January 8, 2018 succession. With Mercedes-Benz, our core brand, we were the best-selling premium brand once again in 2017. We can be proud of that achievement – and we will build on it. Success in our core business provides the basis for us to actively shape the mobility of the future. In 2018, we will systematically continue along this path with CASE.”
Mercedes-Benz defines the four future topics for the automotive industry with its corporate strategy CASE: Connected, Autonomous, Shared & Services and Electric. The optimal combination of these four areas will be a crucial success factor for offering customers the most convincing overall package. The smart vision EQ fortwo show car is the first car to demonstrate how all pillars of the CASE-strategy can be linked up, and presents an intelligent solution for urban mobility and future car sharing: It is electric, fully connected and autonomous, and does not have a steering wheel or pedals. Investments in these four future fields are enabled by the success in the strong core business. Safety, quality, modern design and future-oriented innovations are the key factors that make Mercedes-Benz more successful today than ever before.
Mercedes-Benz completed its strongest-selling year with the best fourth quarter in its history (572,044 units, +4.8%). A new record was achieved also in December (193,534 units, +1.7%). In 2017, Mercedes-Benz was the premium brand with the most new registrations in many markets, and was the market leader in markets including Germany, Great Britain, France, Turkey, Switzerland, Poland, Portugal, Denmark, Czech Republic, Finland, Greece, South Korea, Japan, Austalia, Taiwan, India, the USA, Canada, Mexico and Brazil.
“The 58th consecutive record month to close the year underscores our customers’ trust in the first-class products from Mercedes-Benz. In 2017, we delivered approximately 2.3 million new vehicles with the three-pointed star, allowing us to further extend our lead in the premium segment by a significant margin,” states Britta Seeger, Member of the Board of Management of Daimler AG responsible for Mercedes-Benz Cars Marketing & Sales. “Also in the new year, we will have the right car available for every customer. Overall, we will launch more than a dozen new models in 2018.”
Europe: new best figures in the biggest sales region of Mercedes-Benz Demand for Mercedes-Benz vehicles in the Europe region increased to a new high last year, with 955,301 cars delivered to customers (+6.4%). The models with the highest growth rates were the E-Class Saloon and Estate as well as the SUVs. In Germany, the domestic market, more than 300,000 cars with the three-pointed star were sold in the past twelve months (+3.5%). Mercedes-Benz set new sales records in many markets, including Great Britain (+6.4%), France (+9.7%), Spain (+11.9%), Belgium (+15.1%), Switzerland (+7.7%), Sweden (+15.4%), Poland (+42.4%), Austria (+15.2%) and Portugal (+6.2%).
Asia-Pacific: the region with the strongest growth once again in 2017 In the Asia-Pacific sales region 875,250 Mercedes-Benz were delivered to customers in 2017, more than ever before in one year (+19.2%). China was once again the company’s biggest sales market, not only in the Asia-Pacific region, but also worldwide: 587,868 Mercedes-Benz automobiles were handed over to customers there last year. The increase of more than 25.9% helped Mercedes-Benz to post a new sales record in China. Mercedes-Benz achieved its highest ever unit sales also in the markets South Korea (+20.0%), Japan (+0.4%), Australia (+2.8%), Taiwan (+8.1%), India (+15.9%), Thailand (+22.7%) and Malaysia (+2.3%).
NAFTA region achieves all-time high unit sales with more than 400,000 cars sold In the NAFTA region, Mercedes-Benz handed over 400,320 cars to customers between January and December. The previous record set in 2016 was surpassed by 1.3%, resulting in a new best mark for the region. Thus, Mercedes-Benz was the best-selling premium brand in the NAFTA region in 2017. Growth was especially strong in Canada (+12.2%) and Mexico (+21.9%), and more cars were delivered than ever before in a year in both markets. Unit sales were strong also in the USA in 2017; nearly 340,000 vehicles were sold there, which is on the same level compared to the year before (-0.9%). The slight decrease was primarily due to the lower demand for saloons in the US market. In the important SUV segment, MercedesBenz increased its unit sales to a new high last year.
More than 620,000 compact cars sold in one year once again In 2017, more than a quarter of all Mercedes-Benz automobiles sold were compact cars. In the year before the major A-Class model change, more than 620,000 customers worldwide took delivery of their new A- or B-Class, CLA, CLA Shooting Brake or GLA. The two biggest markets for the compact cars last year were China and Germany. Their popularity also is demonstrated by the total of 5,555,555 compact cars already sold since the A-Class established the segment for Mercedes-Benz in 1997.
Mercedes-Benz will continue this success with the new generation of compact cars, production of which will start in five plants on three continents in 2018. C-Class continues as bestseller for Mercedes-Benz The C-Class Saloon and Estate were the volume models for Mercedes-Benz also in their fourth year of sales of the current generation. More than 415,000 units of these two models were sold last year. About a quarter of them were the long-wheelbase version of the C-Class Saloon, which is produced and sold solely in China. Developing a car in China for China is paying off, and shows how important it is to meet customers’ requirements: China was both the largest and the strongest-growing market for the C-Class in 2017.
New E-Class breaks all records in its first full year of sales
More than 350,000 units of the E-Class Saloon and Estate were delivered to customers between January and December. This means that an increase of 40.0% was achieved in the first full sales year of the new generation. Although Mercedes-Benz is constantly expanding its portfolio, never before were more E-Class cars sold in one year than in 2017. In fact, sales of the E-Class Saloon in China more than doubled last year, where most sales are of the long-wheelbase version. With this vehicle, Mercedes-Benz has responded to the wishes of the Chinese people and recognized the importance to them of generously dimensioned space in the rear. Since 2017, the long-wheelbase version has been sold for the first time also outside China, namely in India.
Successful start of sales of the new S-Class Saloon
The new S-Class Saloon was launched in mid-2017 and is very popular. In the fourth quarter of last year, the sales of this model grew by double digits. About 70,000 units of the S-Class Saloon were sold in the year of the model change. The Mercedes-Maybach S-Class Saloon, which stands for ultimate exclusivity and quality, is very successful. More than 25,000 units have been delivered since its market launch in early 2015, and more than two thirds of those cars went to customers in China.
14% growth in the strongest segment: customers around the globe appealed by the SUVs.
With more than 805,000 units sold and growth of 14.0%, the SUVs made a major contribution to the sales success of Mercedes-Benz last year. Meanwhile, more than a third of Mercedes-Benz cars sold are in this segment. This new sales record is primarily due to strong growth in China, Germany, France, the USA and Great Britain. The strongest-selling SUVs in 2017 were the GLC and the GLA. The GLC Coupé also made a significant contribution to the SUVs’ success in its first full year of sales.
Significant growth in demand for the dream cars compared with the previous year Mercedes-Benz has twelve dream cars in its portfolio that are so popular with customers that in 2017 their prior-year sales were surpassed by 22.4%. Nearly 170,000 new coupés, roadsters and cabriolets from Mercedes-Benz went onto the roads in 2017. A particularly large number of customers decided in favour of the C-Class Cabriolet and the C-Class Coupé. The new Cabriolet and Coupé of the E-Class are also already in the dealerships, and will be followed in 2018 by the market launch of those derivatives of the S-Class. The new CLS Coupé recently had its world premiere at the trade fair in Los Angeles. It is the pioneer of the new design language and will further boost the success of the Mercedes-Benz dream-car family in 2018.
V-Class and X-Class make customers’ hearts beat faster The V-Class set a new record within a year with sales of more than 58,000 units in 2017. From January to December last year, unit sales increased by 25.7%. The eight-seater is especially popular with customers in Germany, while the strongest sales growth was posted in China. The X-Class is the newest model in the Mercedes-Benz product range and was launched successfully in the first markets in November 2017. More than 1,900 of the brand’s first pickup were sold, so far solely to customers in Europe. Additional markets are to follow and will contribute to the ongoing growth of Mercedes-Benz. In early 2018, Mercedes-Benz will launch the pickup in South Africa and Australia, to be followed by Argentina and Brazil in 2019. AMG sold more than 130,000 cars in just one year In the year of AMG’s 50th anniversary, the performance and sports-car brand of Mercedes-Benz achieved six-digit unit sales for the first time in its history.
Last year, a total of 131,970 AMG models were delivered to customers, equivalent to growth of 33.0%. Customers worldwide were especially thrilled by the high-performance entry models. A particular highlight in 2017 was the market launch of the Mercedes-AMG GT R, with which AMG has further expanded its product portfolio at the top end of the range. In the three core regions – Europe, Asia-Pacific and the NAFTA region – the company based in Affalterbach achieved its strongest sales of all time.
AMG posted especially strong double-digit growth of over 40% in each of the major sales markets USA, Germany and Canada.
smart posts a strong year with high unit sales in 2017. Following the record year 2016, 2017 also was one of the strongest-selling years in the history of smart. 2017 was the second best year for the city runabout in the last decade: Worldwide, over 135,000 customers took delivery of their new smart fortwo or smart forfour (-6.5%). A new sales record was set in China, where sales of 23,097 of the urban microcar were higher than ever before in one year (+9.8%). On China’s Singles’ Day, more than 1,400 orders were received via the Internet within 48 hours.
smart is a pioneer for electric mobility; it has now electrified its entire product portfolio and therefore has three fully electric models on offer, including the world’s only fully electric convertible. The models have had an excellent reception with customers and incoming orders are very promising.
This is confirmation of the decision to change smart over to solely electric drive in Europe and North America by 2020. The rest of the world will follow soon after. A glimpse of how smart intends to continue shaping urban mobility in many areas in the future was provided by the fully autonomous and electric show car smart vision EQ fortwo at the Frankfurt Motor Show.
The strong core business is the foundation for the mobility of the future
Thanks to its strong core business, Mercedes-Benz can invest systematically in the mobility of the future. In the medium term, the goal is to facilitate sustainable and environmentally friendly mobility. In order to steadily reduce emissions, Mercedes-Benz already offers its customers an attractive range of future-oriented combustion engines. The new generations of diesel and gasoline engines will be rolled out in the existing model portfolio in 2018. In parallel, the car division is going ahead with drivetrain electrification. A major role will be played by the 48-volt on-board electrical system and the next generation of plug-in hybrids, which already offer customers locally emission-free driving. This year the series model of the EQC will be presented to the public.
In 2019, the first purely electric SUV from the EQ produc t and technology brand will be launched. Major plans were for made for the production of electric cars last year. The EQ models will be produced in the existing plants on the same assembly lines as conventional models. In addition, Daimler AG is establishing a network for battery production with five factories on three continents. Another focus is on the development of the ecosystem for electric mobility, which includes not only the car, but also a full portfolio of related products and services. They range from intelligent services to energy storage for private and commercial customers and environmentally friendly recycling. The product range in the field of intelligent charging solutions is also being significantly expanded, in order to offer customers a holistic premium experience in connection with electric mobility. One important step here is the establishment of the IONITY joint venture for the development of a public fast-charging infrastructure on the main long-distance routes in Europe.
Premium brand experience in sales and service: online and offline
“In the year 2018, Mercedes-Benz Cars continues to place top priority on ‘Best Customer Experience’. We want to delight our customers with innovative ways of addressing our customers. Specifically, this means the systematic digitization and personalization of all customer contacts in sales and after-sales,” states Britta Seeger, Member of the Board of Management of Daimler AG responsible for Mercedes-Benz Cars Marketing & Sales. Mercedes-Benz offers a fascinating customer experience both online and offline. The brand makes use of various formats to address its customers in their various living environments. The Mercedes me digital brand allows customers to contact Mercedes-Benz anywhere and at any time – via app, website or directly from the car. All existing and future services and mobility products connected with the car or with car2go and mytaxi are being brought together on this online platform. This personalized access is already used by well over a million customers in 36 markets and more will follow in 2018. One of the new Mercedes me functions is “Digital Anticipation.” Since 2017, this has allowed customers to follow the production status of certain new cars in real time.
Customers thus have an exclusive insight into the production of their car between ordering and taking delivery. In this way, Mercedes-Benz increases its customers’ anticipation day by day until the new car is handed over. Mercedes-Benz is making increasing use of digital formats also in car sales. Since 2016, customers in Germany have been able to buy new cars in the Mercedes-Benz online store. And since July 2017, it has also been possible to buy used cars with the star with just a mouse click. The goal is to increase the proportion of worldwide online sales to 25% by 2025. Further value-adding digital services connected with the premium products from Mercedes-Benz will follow.
In addition to all of the digital activities, personal customer contacts will continue to be essential for the dealerships. As before, the Mercedes-Benz partners are the backbone of the sales operation and are the competent contact persons for customers. For this reason, the company started to modernize the interior and exterior brand image of its retail outlets in 2017.
The showroom of the future will systematically combine the advantages of the digital and the analogue worlds. For example, dialog-supporting media will be applied and will allow the desired car to be experienced in the virtual world. The advisory and sales process will thus become a previously unknown brand and product experience. New forms of customer contact will be implemented also in the area of after sales. This means for example that meetings can be booked online and service reception can take place digitally. In this way, customers will be offered a modern service experience.
For Mercedes-Benz, one thing is clear: The customers and their individual needs are at the focus during the entire customer journey. No matter in which form, every contact with Mercedes-Benz should be a special experience for them – a Mercedes moment – whether in the physical or the digital world.
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Belgium Ablynx soars after it rejects Novo Nordisk's biotech bid; NoVo Nordisk offers 2.6 billion euro for Belgian biotech group Ablynx. +45% at 30,80 euro
Denmark’s Novo Nordisk, the world’s biggest insulin maker, went public with a 2.6 billion euro bid for Belgian biotech group Ablynx on Monday, seeking a new source of growth by bolstering its treatments for rare blood disorders.
Ablynx rejected Novo’s latest takeover approach and analysts predict the Danish group, whose new chief executive is trying to expand by buying drugs developed by competitors, might face counterbidders and would need to raise its bid.
Shares in Ablynx closed up 45 percent at 30.80 euros, above the 30.50 euros per share Novo has offered. The bid represents a 60 percent premium to the Belgian company’s share price on Dec. 6, which was before Novo’s first approach.
The unsolicited bid comes at a time of renewed interest by large drugmakers in smaller biotech firms, with U.S.-based Celgene clinching a deal to buy Impact Biomedicines for up to $7 billion on Sunday and Japan’s Takeda Pharmaceutical agreeing last week to buy another Belgian biotech group TiGenix for $630 million.
Ablynx said in a statement that its board “unanimously concluded that the proposal fundamentally undervalues Ablynx and its strong prospects for continued growth and value creation”.
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Beiersdorf with strong performance throughout 2017 – further acceleration in fourth quarter
Organic Group sales up 5.7% (nominal 4.5%)
Consumer achieves organic sales growth of 4.7% (nominal 3.4%)
tesa boosts sales by 10.6% (nominal 9.7%)
Group EBIT guidance confirmed
Profit after tax margin expected to be around 10%
Hamburg, January 8, 2018 – Beiersdorf once again recorded strong sales growth in 2017 while further increasing market share. The business segments Consumer and tesa both contributed to this dynamic performance. Beiersdorf’s sales grew steadily throughout the early months of 2017, followed by a strong increase against an industry trend in the third quarter and further accelerating sales growth in the fourth quarter. According to preliminary, unaudited figures, organic Group sales were up 5.7%. In nominal terms, they rose by 4.5%, from €6.752 billion to a record €7.055 billion. The Consumer Business Segment achieved organic sales growth of 4.7%. tesa underlined its excellent market position by increasing sales by 10.6%.
Beiersdorf expects the EBIT margins for the group and for the Consumer business segment to be slightly above previous year, and for the tesa business segment to be significantly above last year’s. Profit after tax margin is expected to be around 10%. The difference compared to last year is driven by the absence of one-time profits incurred in 2016 as well as losses from FX and financial investments in 2017. Final income and earnings figures will not be available until the 2017 financial statements are prepared.
“Beiersdorf is very well positioned with its business model and internationally renowned brands, as is clearly shown by our sales performance in 2017. A high level of efficiency and our ability to adapt to changes in the markets quickly are key assets of our company. Our achievements are the result of hard work done over the past few years and the systematic implementation of our business strategy. While the global markets are expected to remain volatile and challenging, we have good reason to be cautiously optimistic as we start into 2018,” said Stefan F. Heidenreich, CEO Beiersdorf AG.
Consumer Business Segment
The Consumer Business Segment increased organic sales by 4.7% in 2017. In nominal terms, sales were up 3.4%, from €5.606 billion in the previous year to €5.798 billion. Organic sales growth was generated in all regions. All Beiersdorf core brands contributed to the increase in sales – NIVEA, Eucerin, Hansaplast, and La Prairie.
tesa Business Segment
tesa achieved organic sales growth of 10.6% in 2017. In nominal terms, sales were up 9.7%, from €1.146 billion to €1.257 billion. This successful performance was fueled by direct business with industry customers and the trade markets segment, which includes the segment’s end-customer business.
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GoPro: Announces Preliminary Fourth Quarter 2017 Results
GoPro, Inc. (NASDAQ: GPRO) today reported certain preliminary financial results for the fourth quarter ended December 31, 2017. GoPro expects revenue to be approximately $340 million for the fourth quarter of 2017. Fourth quarter revenue includes a negative impact of approximately $80 million for price protection on HERO6 Black, HERO5 Black and HERO5 Session cameras, as well as the Karma drone.
GoPro expects GAAP gross margin for the fourth quarter of 2017 to be between 24% and 26%. Non-GAAP gross margin for the fourth quarter of 2017 is expected to be between 25% and 27%. Non-GAAP gross margin for the same period, excluding the price protection impact of $80 million and other charges of between $19 million and $21 million, is expected to be between 44% and 46%. GoPro expects GAAP operating expenses to be between $136 million and $140 million for the fourth quarter of 2017 and non-GAAP operating expenses to be between $118 million and $122 million for the same period.
GoPro ended the fourth quarter with cash and cash equivalents of $247 million, up $50 million over the third quarter of 2017.
"As we noted in our November earnings call, at the start of the holiday quarter we saw soft demand for our HERO5 Black camera," said GoPro founder and CEO Nicholas Woodman. "Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier. Our December 10 holiday price reduction provided a sharp increase in sell-through."
Globally, HERO5 Black sell-through more than doubled in the two weeks following the December 10 price reduction, while HERO5 Session sell-through roughly tripled.
Sales of the newly introduced flagship HERO6 Black camera performed as expected during the fourth quarter. On January 7, GoPro lowered the price of its premium model, HERO6 Black from $499 to $399 to align with its good, better, best product strategy.
Initial uptake of GoPro's newly launched spherical camera, Fusion, was better than expected during the quarter.
"GoPro is committed to turning our business around in 2018," said Nicholas Woodman. "We entered the new year with strong sell-through and are excited with our hardware and software roadmap. We expect that going forward, our roadmap coupled with a lower operating expense model will enable GoPro to return to profitability and growth in the second half of 2018."
2018 Products and Operating Expenses
In 2018, GoPro will continue to innovate with several new products aimed at new and existing customers. GoPro's sharper focus will enable an $80 million reduction in operating expenses compared to 2017 levels, resulting in a target operating expense level of below $400 million for 2018 on a non-GAAP basis.
The lower non-GAAP operating expense target will be achieved through a variety of strategies, including:
GoPro is reducing its global workforce from 1,254 employees as of September 30, 2017 to fewer than 1,000 employees worldwide.
GoPro founder and CEO Nicholas Woodman will reduce his 2018 cash compensation to $1.
Although Karma reached the #2 market position in its price band in 2017, the product faces margin challenges in an extremely competitive aerial market. Furthermore, a hostile regulatory environment in Europe and the United States will likely reduce the total addressable market in the years ahead. These factors make the aerial market untenable and GoPro will exit the market after selling its remaining Karma inventory. GoPro will continue to provide service and support to Karma customers.
A restructuring of GoPro's business will result in an estimated aggregate charge of $23 million to $33 million, including approximately $13 million to $18 million of cash expenditures as a result of a reduction in force, substantially all of which are severance and related costs, as well as approximately $10 million to $15 million of other charges, consisting primarily of non-cash items. GoPro expects to recognize most of the restructuring charges in the first quarter of 2018. GoPro will provide more detail on its 2017 results and 2018 outlook in its fourth quarter earnings report which will take place in early February.
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Volkswagen Group and leading self-driving technology company, Aurora Innovation, announce strategic partnership
New partnership of Volkswagen Group and Aurora will provide best-in-class expertise and experience bringing self-driving cars to our roads quickly, broadly and safely
Aurora is supporting the Volkswagen Group to make their vision of the future ‘Mobility for all, at the push of a button’ becoming reality
Within the Group the strategic partnership is led by Chief Digital Officer Johann Jungwirth
Today, the Volkswagen Group and leading self-driving technology company, Aurora Innovation, announced a strategic partnership at the Consumer Electronics Show (CES) in Las Vegas, NV, U.S.A. The collaboration brings the two companies together to bring self-driving electric vehicles to cities as Mobility-as-a-Service (MaaS) fleets.
The Volkswagen Group defined its goal of becoming a global leader in autonomous driving with its dedicated Self-Driving System (SDS) in its future program “TOGETHER – Strategy 2025”. This strategic direction builds on a long tradition for the Volkswagen Group as a leader in the fields of automated vehicle and advanced mobility technologies. In 2005, a Volkswagen Electronics Research Lab-Stanford University team claimed victory at the 2005 DARPA Grand Challenge, which is widely considered the dawn of the automated vehicle era.
Chief Digital Officer Johann Jungwirth: “Our vision is ‘Mobility for all, at the push of a button’. This means that we want to offer mobility for all people around the world. Mobility also for children, elderly, sick and visually impaired people, really for all. ‘At the push of a button’ stands for simplicity and the easiness of use. In the future people can of course use our mobility app or digital virtual assistant to hail a self-driving electric vehicle to drive them conveniently door-to-door, or use our Volkswagen OneButton which has GPS, connectivity and a compass, as a small beautiful key fob with maximum convenience. Working with Aurora, leading self-driving system company, will give us a giant leap forward in our mission to become the world’s leading provider of sustainable mobility, with self-driving vehicles. Our aim is to create new Mobility-as-a-Service (MaaS) solutions which customers will be really passionate about because they have been tailored to the human with highest safety standards, best-in-class user experience and digital intelligence. For me this is the reinvention of mobility and the automobile.”
Self-driving technology is set to become the centerpiece of future personal mobility. The collaboration with Aurora will provide valuable experience with the world-class engineering team to the ongoing development of software and hardware for driverless vehicles, and, additionally, mobility services for urban and rural areas. Thereby the Volkswagen Group is stepping up the pace. As the Self-Driving System (SDS) reaches the required maturity and safety levels in the first cities, it can be integrated across the Group brands, for different product categories: from fully self-driving pods like SEDRIC, shuttles or delivery vans to self-driving trucks without a cabin.