The Food Group wrote down the value of its $ 15 billion Kraft and Oscar Mayer brands, achieved a $ 12.6 billion loss, reduced 36%, and revealed that the accounting method is under investigation by the US Securities and Exchange Commission .
Customers were not the problem: Sales increased by about 1% in the fourth quarter. Instead, CEO Bernardo Hees owed the company's business. Higher than expected production and logistics costs plagued the company. Kraft Heinz had expected its merger in 2015 to continue to help reduce costs, but these efficiencies dried up.
The company said that US regulators are looking at matters "including, but not limited to, agreements, side agreements, and changes or modifications to agreements with their suppliers." The SEC sent a summons to the case in October 201
Buffett letters are carefully read for investment advice.
This year, the note will be extracted for insight into reducing economic growth in the United States and around the world, and what it means for businesses and markets.
3. Economic Concerns: US investors have relieved stocks on Thursday after receiving more bits of worrying news about the world economy.
US durable orders were lower than expected in December, and existing home sales fell in January. Surveys showed further production alertness over the developed world.
"The US data has obviously turned a corner recently," said Simon MacAdam, global economist at Capital Economics. "With the economy likely to lose much more pace this year, the Fed is unlikely to pull prices back this cycle."
US crude futures added 0.4% to trading at $ 57.20 a barrel.
Oil prices have mainly recovered from losses on Thursday, published by a report by the Energy Information Administration showing that US crude production increased to 12 million barrels a day last week.
Friday – Berkshire Hathaway ( income )