A round-up of today's other business news in brief

Origin to join forces with fisheries firm

Agri-business group Origin Enterprises is to combine its fishmeal and fish oil operations with specialist fisheries company Austevoll Seafood.

Origin employs 112 people in its United Fish Industries (UFI) unit, 35 of whom are based in the fishing port of Killybegs in Co Donegal.

UFI is the third largest fishmeal and fish oil manufacturer.

The deal will see Origin transfer its interest to UFI to Austevoll, which is the largest producer in the sector, for a cash contribution of €16 million in return for a 50/50 shareholding in the combined business.

A spokesman for Origin said there were “no implications” for UFI’s Irish staff following the agreement.

US service sector shrinks in January

The US service sector shrank in January, but less severely than expected, according to a report released yesterday.

The Institute for Supply Management said its non-manufacturing index came in at 42.9 in January compared with 40.1 in December.

The level of 50 separates expansion from contraction. The index dates back to July 1997.

Economists had expected a reading of 39, according to the median of 75 forecasts in a Reuters poll, which ranged from 37 to 44.

The service sector represents about 80 per cent of US economic activity, including businesses such as banks, airlines, hotels and restaurants. – (Reuters)

Panasonic to post losses of 4.2bn

Japan’s Panasonic, the worlds largest plasma TV maker, warned it would post an annual loss of $4.2 billion (€3.26 billion) and said it would cut 15,000 jobs and close plants as it battles a slump in demand and a stronger yen.

The maker of Viera flat TVs and Lumix digital cameras is struggling with slowing sales, the growing costs of plant closures and other restructuring moves, and a steep rise in the yen, which cuts into exporters’ overseas revenues.

It joins other Japanese consumer electronics makers such as Sony in projecting a full-year loss. – (Reuters)

BHP Billiton set for acquisitions

BHP Billiton, the world’s biggest mining group, underlined the strength of its balance sheet compared with rivals yesterday when it said cash flows of $13.1 billion (€10.1 billion) in the first half had reduced gearing to less than 10 per cent.

Marius Kloppers, chief executive, said this had put it in a privileged position to buy mining assets “as others falter”.

BHP is interested in buying joint venture projects that it runs with Rio Tinto, which it failed to buy last year for $62 billion.

BHP reported a 57 per cent drop in first-half profits to $2.62 billion, reflecting the impact of impairment charges related to closing the Ravensthorpe nickel mine in Western Australia and the costs of last year's aborted bid for Rio, which totalled $450 million. – ( Financial Timesservice)

Connellan warns on competitiveness

Ireland must regain its competitiveness or risk returning to the economy of the 1980s, Dublin Port Company chief executive Enda Connellan warned yesterday.

Addressing the Leinster Society of Chartered Accountants lunch, Mr Connellan said that Irish businesses must seriously address their cost base, and advised that the country’s focus should be on the real trading economy.

“We must show a determination to carry through the national development plan,” he said. “We must build the world-class road network, the schools and the public transport that will feed our return to growth.”