Even today Boeing is run by a Welch disciple. Dave Calhoun, the current C.E.O., was a dark horse candidate to succeed Mr. Welch in 2001, and he was on the Boeing board during the rollout of the Max and the botched response to the crashes.

When Mr. Calhoun took over the company in 2020, he set up his office not in Seattle (Boeing’s spiritual home) or Chicago (its official headquarters), but outside St. Louis at the Boeing Leadership Center, an internal training center explicitly built in the image of Crotonville. He said he hoped to channel Mr. Welch, whom he called his “forever mentor.”

The “Manager of the Century” was unbowed in retirement, barreling through the twilight of his life with the same bombast that defined his tenure as C.E.O.

He refashioned himself as a management guru and created a $50,000 online M.B.A. in an effort to instill his tough-nosed tactics in a new generation of business leaders. (The school boasts that “more than two out of three students receive a raise or promotion while enrolled.”) He cheered on the political rise of Mr. Trump, then advised him when he won the White House.

In his waning days, Mr. Welch emerged as a trafficker of conspiracy theories. He called climate change “mass neurosis” and “the attack on capitalism that socialism couldn’t bring.” He called for President Trump to appoint Rudy Giuliani attorney general and investigate his political enemies.

The most telling example of Mr. Welch’s foray into political commentary, and the beliefs it revealed, came in 2012. That’s when he took to Twitter and accused the Obama administration of fabricating the monthly jobs report numbers for political gain. The accusation was rich with irony. After decades during which G.E. massaged its own earnings reports, Mr. Welch was effectively accusing the White House of doing the same thing.

While Mr. Welch’s claim was baseless, conservative pundits picked up on the conspiracy theory and amplified it on cable news and Twitter. Even Mr. Trump, then merely a reality television star, joined the chorus, calling Mr. Welch’s bogus accusation “100 percent correct” and accusing the Obama administration of “monkeying around” with the numbers. It was one of the first lies to go viral on social media, and it had come from one of the most revered figures in the history of business.

When Mr. Welch died, few of his eulogists paused to consider the entirety of his legacy. They didn’t dwell on the downsizing, the manipulated earnings, the Twitter antics.

And there was no consideration of the ways in which the economy had been shaped by Mr. Welch over the previous 40 years, creating a world where manufacturing jobs have evaporated as C.E.O. pay soars, where buybacks and dividends are plentiful as corporate tax rates plunge.

By glossing over this reality, his allies helped perpetuate the myth of his sainthood, adding their own spin on one of the most enduring bits of disinformation of all: the notion that Jack Welch was the greatest C.E.O. of all time.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Why Tesla Soared as Other Automakers Struggled to Make Cars

For much of last year, established automakers like General Motors and Ford Motor operated in a different reality from Tesla, the electric car company.

G.M. and Ford closed one factory after another — sometimes for months on end — because of a shortage of computer chips, leaving dealer lots bare and sending car prices zooming. Yet Tesla racked up record sales quarter after quarter and ended the year having sold nearly twice as many vehicles as it did in 2020 unhindered by an industrywide crisis.

Tesla’s ability to conjure up critical components has a greater significance than one year’s car sales. It suggests that the company, and possibly other young electric car businesses, could threaten the dominance of giants like Volkswagen and G.M. sooner and more forcefully than most industry executives and policymakers realize. That would help the effort to reduce the emissions that are causing climate change by displacing more gasoline-powered cars sooner. But it could hurt the millions of workers, thousands of suppliers and numerous local and national governments that rely on traditional auto production for jobs, business and tax revenue.

Tesla and its enigmatic chief executive, Elon Musk, have said little about how the carmaker ran circles around the rest of the auto industry. Now it’s becoming clear that the company simply had a superior command of technology and its own supply chain. Tesla appeared to better forecast demand than businesses that produce many more cars than it does. Other automakers were surprised by how quickly the car market recovered from a steep drop early in the pandemic and had simply not ordered enough chips and parts fast enough.

G.M. and Stellantis, the company formed from the merger of Fiat Chrysler and Peugeot, all sold fewer cars in 2021 than they did in 2020.

Tesla’s production and supply problems made it an industry laughingstock. Many of the manufacturing snafus stemmed from Mr. Musk’s insistence that the company make many parts itself.

Other car companies have realized that they need to do some of what Mr. Musk and Tesla have been doing all along and are in the process of taking control of their onboard computer systems.

Mercedes, for example, plans to use fewer specialized chips in coming models and more standardized semiconductors, and to write its own software, said Markus Schäfer, a member of the German carmaker’s management board who oversees procurement.

traced to the outbreak of Covid-19, which triggered an economic slowdown, mass layoffs and a halt to production. Here’s what happened next:

It also helps that Tesla is a much smaller company than Volkswagen and Toyota, which in a good year produce more than 10 million vehicles each. “It’s just a smaller supply chain to begin with,” said Mr. Melsert, who is now chief executive of American Battery Technology Company, a recycling and mining firm.

recall more than 475,000 cars for two separate defects. One could cause the rearview camera to fail, and the other could cause the front hood to open unexpectedly. And federal regulators are investigating the safety of Tesla’s Autopilot system, which can accelerate, brake and steer a car on its own.

“Tesla will continue to grow,” said Stephen Beck, managing partner at cg42, a management consulting firm in New York. “But they are facing more competition than they ever have, and the competition is getting stronger.”

The carmaker’s fundamental advantage, which allowed it to sail through the chip crisis, will remain, however. Tesla builds nothing but electric vehicles and is unencumbered by habits and procedures that have been rendered obsolete by new technology. “Tesla started from a clean sheet of paper,” Mr. Amsrud said.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Airlines See a Surge in Domestic Flights, Beating Forecasts

The aviation recovery is gaining momentum.

A summer travel bonanza is exceeding expectations, helping airlines earn profits again and brightening the outlook for the rest of the year. It’s a welcome relief for a battered industry and a sign that the rebound that began this spring appears to be here to stay.

The economic upturn, aggressive cost-cutting and an enormous federal stimulus that paid many salaries have helped to improve the finances of the largest carriers, which took on vast amounts of debt and lost billions of dollars during the pandemic.

This month, consumer spending on airlines briefly exceeded 2019 levels on a weekly basis for the first time since the pandemic began, according to Facteus, a research firm that monitors millions of online payments. Ticket prices have rebounded, too: In June, fares were down only 1 percent from the same month in 2019, according to the Adobe Digital Economy Index, which is similarly based on website visits and transactions.

And on Sunday, the Transportation Security Administration screened more than 2.2 million travelers at its airport checkpoints, the most in one day since the start of the pandemic.

planned to hire hundreds of flight attendants and bring back thousands who volunteered for extended leaves during the pandemic.

increase its minimum wage to $15 an hour to retain and attract workers, while Delta is in the middle of hiring thousands of employees. United last month announced plans to buy 270 new planes in the coming years, the largest airplane order in its history and one that would create thousands of jobs nationwide.

Southwest on Thursday reported a profit of $348 million for the quarter that ended in June, its second profitable quarter since the pandemic began. American reported a $19 million profit over the same period, while Delta last week reported a $652 million profit, a pandemic first for each airline. United this week reported a loss, but projected a return to profitability in the third quarter as its business improved faster than forecast.

The financial turnaround has been buoyed by an infusion of $54 billion of federal aid to pay employee salaries over the past year and a half. Without those payments, none of the major airlines would have been able to report profits for the quarter that ended in June. The aid precludes the companies from paying dividends through September 2022.

Each airline offered a hopeful outlook for the current quarter. American projected that passenger capacity would be down only 15 to 20 percent from the third quarter of 2019, while United projected a 26 percent decline and Delta forecast a 28 to 30 percent drop. Southwest, which differs from the other three large carriers in that it operates few international flights, said it expected capacity to be comparable to the third quarter of 2019.

“We are just really excited about the momentum we’re seeing in the numbers,” Doug Parker, American’s chief executive, told analysts after the company delivered its earnings report.

The financial results and forecasts for the rest of the summer are the latest sign of strength in a comeback that has been building for months. But the airlines have vast amounts of debt to repay — American, the most indebted carrier, announced a plan on Thursday to pay down $15 billion by the end of 2025 — and the rebound hasn’t been free of setbacks.

recent poll from the Global Business Travel Association, an industry association. If other companies follow Apple’s lead in delaying a return to the office, though, the corporate travel recovery could be held back.

Delta said it expected domestic business trips to recover to about 60 percent of 2019 levels by September, up from 40 percent in June. Those figures roughly align with estimates from United.

“The demand is recovering even faster than we had hoped domestically,” Mr. Kirby of United said on Wednesday.

International travel has slowly started to recover, too, as more countries, particularly in Europe, open up to American travelers who can provide proof of vaccination or a negative coronavirus test. But airlines are lobbying the Biden administration to loosen restrictions in kind, which, they say, will allow the recovery to accelerate.

“I think the surge is coming, and just as we’ve seen it on the consumer side, we’re getting ready for it on the business side,” Mr. Bastian of Delta said last week. “Once you open businesses, offices, and you get international markets opened, I think it’s going to be a very good run over the next 12 to 24 months.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Macy’s First-Quarter Sales Jump 56 Percent as Shoppers Return

Macy’s said on Tuesday that its first-quarter sales jumped more than 50 percent from last year, when the start of the pandemic pulverized the retailer’s revenue, and it raised its forecast for sales and profit this year.

The company, which also owns Bloomingdale’s, reported $4.7 billion in sales for the three months that ended May 1, and a profit of $103 million. That compares with about $3 billion in sales and a net loss of $3.6 billion in the same period last year. Macy’s said it anticipated sales in the range of $21.7 billion to $22.2 billion this year, up from a previous forecast of somewhere between $19.8 billion and $20.8 billion.

Macy’s executives said on an earnings call that customers, buoyed by government stimulus were shopping again as the weather warmed up and vaccines have become more readily available. They are beginning to attend events after a year of isolation, and snapping up dresses for proms, casual get-togethers and weddings. Men’s tailored clothing is also seeing increases. Traffic is improving at Macy’s flagship stores, which lost visitors in the past year, though the company said it did not expect international tourism to recover until next year.

Department stores, which have already been under pressure in recent years, were battered by the pandemic as consumers postponed gatherings and avoided enclosed spaces. The news out of Macy’s was a positive for the retail sector, but the company’s first-quarter sales were still down about 15 percent from $5.5 billion in the same period of 2019. Macy’s made headlines recently after proposing the construction of a commercial office tower on top of its flagship Herald Square store in New York. The company said on the call on Tuesday that it expected the project would produce a “significant” amount of cash to support future plans.

View Source

Walmart’s E-Commerce Sales Continue to Grow

Walmart reported a strong first quarter on Tuesday, as its e-commerce business continued to drive sales and customers were helped by stimulus checks.

The retail giant said its sales in the United States in the first quarter increased 6 percent to $93.2 billion, while operating profit grew about 27 percent to $5.5 billion.

“Our optimism is higher than it was at the beginning of the year,” Walmart’s chief executive, Doug McMillon, said in a statement. “In the U.S., customers clearly want to get out and shop.”

Walmart is among a group of larger retailers that have experienced blockbuster sales during the pandemic, particularly for online groceries. The company’s e-commerce sales increased 37 percent in the first quarter.

The question now is whether Walmart can continue its pace of growth as shopping habits start to normalize.

Mr. McMillon said although the second half of the year “has more uncertainty than a typical year, we anticipate continued pent-up demand throughout 2021.”

Sales in the company’s international division declined 8.3 percent in the first quarter, as Walmart divested from some of its subsidiaries in places like Japan and Argentina. The company’s total revenue increased 2.7 percent to $138.3 billion.

Walmart raised its financial guidance for the rest of the year, projecting “high single digit” growth in operating income in its United States operation, with sales up in the single digits.

View Source

Disney’s Streaming Service Slows, Coloring a Profitable Quarter

Operating income at Disney’s traditional television business — ESPN, ABC, Disney Channel, FX, Freeform, National Geographic and other networks — reached $2.8 billion, a 15 percent increase. Disney attributed the improved results to lower programing costs and higher fees from cable distributors (based on multiyear contracts). Costs at ABC fell primarily because of the timing of the Academy Awards, which aired later than in past years — after the quarter ended — because of the pandemic.

Profit in the quarter, the second in Disney’s fiscal year, totaled $912 million, up 95 percent from a pandemic-battered $468 million a year earlier. When one-time items are excluded, per-share profit rose 32 percent, to 79 cents from 60 cents. (Analysts had expected about 27 cents.)

Revenue was $15.6 billion, a 13 percent decline from a year earlier.

Disney estimated that the pandemic had a $1.2 billion impact on its theme park and cruise empire. As a result, the division had a loss of $403 million. Disneyland in California, two theme parks in France and the Disney Cruise Line were closed during the recent quarter. Disneyland reopened on April 30 with capacity limited to 25 percent, as mandated by California officials.

Mr. Chapek told analysts that the company’s largest tourist destination, Walt Disney World in Florida, would benefit from the relaxed mask-wearing guidance given by federal officials on Thursday.

“That is very big news for us,” he said. Vacationing “in Florida in summer with a mask on can be quite daunting.”

In terms of theme park demand for the months ahead, Mr. Chapek noted that Disney research had found that “intent to visit” by families was on a par with 2019, suggesting a bounce-back for the resorts once capacity restrictions and other measures (mandatory face coverings) are lifted or relaxed.

In another signal of a recovery, Disney said two films, “Shang-Chi and the Legend of the Ten Rings” and “Free Guy,” starring Ryan Reynolds, would receive exclusive 45-day runs in theaters before appearing on Disney+. “Free Guy” is scheduled to arrive in cinemas on Aug. 13 and “Shang-Chi,” a Marvel spectacle, in early September.

View Source

Coinbase made $771 million in profit in the first quarter, benefiting from crypto mania.

The cryptocurrency exchange Coinbase said on Thursday that its quarterly profit soared by more than 20 times from a year earlier as its revenue skyrocketed, in a sign of how enthusiasm for digital currencies has gone mainstream in the pandemic.

Coinbase said it brought in $1.8 billion in revenue during the first three months of the year, up from $191 million in the same period a year ago. Profits jumped to $771 million from $32 million. It was the company’s first earnings report since it went public last month.

But Coinbase also offered a cautionary note, saying that rivals were swarming the market and increasing competition. The company has been spending heavily on marketing and development to keep ahead of its competitors.

“The rapid expansion of the cryptoeconomy also creates challenges for Coinbase,” it said in a letter to shareholders. “We also have to continue to move quickly to address them, and that inspires us toward action and growth.”

a wave of market manias have gripped the financial world during the pandemic. That surge has also driven growth and profits for Coinbase. It said Thursday that 56 million people were verified on its platform, up from 34 million a year earlier.

But Coinbase’s share price has dropped as cryptocurrencies have fallen from their highs and its market capitalization now stands at $53 billion. On Wednesday, Elon Musk, chief executive of Tesla and a vocal cryptocurrency supporter, tweeted that Tesla would stop accepting Bitcoin as payment for cars, citing environmental reasons, and Bitcoin’s value dropped. One Bitcoin was worth under $50,000 on Thursday, down from more than $63,000 in mid-April.

Coinbase has also faced criticism as it has grown. Customers have said the company has ignored their pleas for help when their digital fortunes were stolen or when they were locked out of their accounts. Current and former employees have also said Coinbase has treated Black and women employees unfairly.

This week, Coinbase said it was increasing compensation for its employees as it tried to stay competitive and reduce uncertainty. Employees will no longer negotiate for salaries when starting at the company, which “can disproportionately leave women and underrepresented minorities behind,” it said in a blog post.

started as a joke, would be available to trade on Coinbase in six to eight weeks.

View Source

SpongeBob, ‘Star Trek’ and sports drive subscriptions to Paramount+.

SpongeBob, “Star Trek” and the Super Bowl have attracted new subscribers to ViacomCBS’s streaming platforms.

The company, led by Shari Redstone, rebranded its long-running streaming service as Paramount+ in March, while also providing it with a slew of new shows, films and sports programming. The company also added content to Pluto, its free streaming service.

The stronger commitment to digital media has created a revenue powerhouse, with streaming sales jumping 65 percent to $816 million in the first quarter, the company reported Thursday. ViacomCBS said it added 6 million new streaming subscribers to both Paramount+ and a smaller streaming service, Showtime, bringing the total to 36 million.

The company doesn’t disclose how many customers are coming to each platform, but the majority have bought Paramount+, a cheaper service at $6 a month with ads, or $10 a month without commercials. ViacomCBS plans to offer a new tier at $5 a month this June in an effort to drive more subscribers. That should help the company sell more ads, offsetting the price drop.

true profitability only after it surpassed 200 million subscribers last year.

The company said it will invest more in original series and films for Paramount+, and, in a marked switch from its previous strategy, it plans to hold back more of its own productions for the service, instead of licensing them to other streamers.

In 2019, the company sold rights to “South Park,” one of its most popular franchises, to AT&T’s HBO Max for $500 million for several years. It has also sold shows such as “Tom Clancy’s Jack Ryan” to Amazon Prime Video and “Thirteen Reasons Why” to Netflix. Now, ViacomCBS will try to fill its content pipeline from its own studios.

jumped nearly tenfold in the past year.

Most of those gains had come as a result of a heavily leveraged trading strategy from a single investment firm called Archegos Capital Management, led by the investor Bill Hwang. At one point Mr. Hwang was responsible for $20 billion of ViacomCBS stock, or a third of all shares.

It all came tumbling down last month, when lenders demanded their money back. ViacomCBS also suffered as its share price plummeted from a high of $100 to about $38 on Thursday.

View Source

Volkswagen Earnings Show Reliance on Sales in China

A spike in sales to Chinese customers helped Volkswagen rebound strongly from the disruption caused by the pandemic, the carmaker said Thursday, underlining China’s importance to the German economy.

Sales in the first three months of 2021 rose 13 percent compared to a year earlier, to 62.4 billion euros, or $75 billion, while profit rose nearly sevenfold to 3.4 billion euros, the company said. Vehicle sales in China, which is Volkswagen’s largest market, rose more than 60 percent.

The recovery in sales bodes well for the German economy. Vehicles are the country’s biggest export product. But Volkswagen also illustrates Germany’s dependence on China when tensions between Beijing and the European Union are rising because of the Chinese government’s treatment of minority groups and its crackdown on dissent in Hong Kong.

As is typical for Volkswagen, the company’s Audi and Porsche divisions generated most of the profit. The luxury vehicles have a higher profit margin than the more affordable cars that account for most of Volkswagen’s volume.

shortage of semiconductors that has afflicted all carmakers in recent months, but warned that the chip famine could become more acute in months to come.

Volkswagen sold 60,000 battery-powered vehicles out of a total of 2.4 million during the quarter. That may be a disappointment to the company, which has staked its future on a new line of electric cars, the first of which went on sale late in 2020.

View Source

Fox Earnings: Fox Acquires OutKick as Profits Jump

Fox News, the cable news giant controlled by Rupert Murdoch, kept its parent company flush in the first three months of the year, notching a slight gain in profit and sales despite a drop in viewers.

Altogether, Fox Corporation beat Wall Street expectations with a sevenfold increase in profit to $567 million and a 6.5 percent drop in revenue to $3.2 billion compared with the same period a year prior. A change in how the company valued some of its assets was a key reason for the profit surge. Investors were looking for a $332 million profit and $3.1 billion in sales.

But revenue at most of its businesses dropped as fewer viewers tuned into the company’s cable channels and the Fox broadcast network, in part because Fox did not host the Super Bowl this year. Total advertising sales fell 24 percent to $1.2 billion, with the cable segment, primarily Fox News, seeing ad revenue drop 7 percent to $283 million.

The decrease in advertising mirrors the performance at other media conglomerates and spotlights a significant shift in the advertising market. Ad revenue jumped at Facebook, Google and even smaller digital publishers in the first quarter as advertisers were more willing to spend their budget on digital platforms, often at the expense of television.

overrated” and downplayed the severity of the brewing pandemic.

In a statement announcing the acquisition, Lachlan Murdoch, chief executive of Fox Corporation and the son of Rupert Murdoch, welcomed Mr. Travis. “Clay and his team have quickly made OutKick a content powerhouse with a very large, loyal and engaged audience.”

Despite the drop in viewers at Fox News, the network benefited from contractually triggered rate increases that cable operators pay to carry the channel. Licensing fees rose 6 percent to $1.07 billion. Advertising fell despite charging higher ad rates.

The younger Mr. Murdoch claimed victory for Fox News in a call with investors after the earnings report.

“Fox News reclaimed its leadership position as America’s No. 1 cable news network and the most-watched cable network in prime time,” he said before taking a moment to take a jab at rivals.

“MSNBC lost more than one-third of its audience and CNN lost over half,” he said. “Over half.”

View Source