Porsche 

On Sunday, Volkswagen, the automotive brand that owns Porsche, among other luxury car brands, unveiled plans for a Porsche IPO. The stock is expected to begin trading on September 29th using the German Frankfurt Stock Exchange.

The stock sale will raise nearly $9B in cash. Volkswagen plans to offer 114M shares at a value between $76.50-$82.50 per share.

If the IPO goes through as planned, Volkswagen said it would hold an investor meeting and offer a special dividend of 49% of total gross proceeds from the share sale. In addition, it will be Europe’s third largest IPO ever.

Volvo

Last Wednesday, Volvo announced that three heavy-duty electric truck models had begun production. 

Volvo claims the Electric Volvo FM, Volvo FMX & Volvo FH could run at weights up to 44 tonnes. In addition, the Volvo FM has the best range of about 236 miles per charge. By contrast, the Volvo FMX & FH range is 198 miles.

Volvo Trucks President Roger Alm is focused on charging infrastructure. He said, “we need to build out the infrastructure of the charging network; that is very important,” 

Volvo said production at the facility in Gothenburg, Sweden, has begun. The following year production will start in Ghent, Belgium as well. Volvo Trucks plant in Ghent will supply the batteries. 

Volvo Group announced it currently has “six electric truck models in series production globally.”

Patagonia

Patagonia founder Yvon Chouinard donates the company to help fight climate change. Chouinard and other executives considered going public to drive investor money to the cause. However, he concluded that responsibility to the shareholders and pressure for growth would have taken away from the company’s values.

Since 2001 Patagonia has been donating 1% of profits annually to fight climate change and support the environment. 

98% of the families’ stock will fund projects that protect the environment and help fight environmental crises. The other 2% will support the brand to aid in the survival of Patagonia and its values. 

Some have noticed that this transfer to Patagonia Purpose Trust falls under a Holdfast Collective and would be taxed differently than if Chouinard were to sell his company. For example, selling at a reasonable $3B evaluation – Chouinard would be subject to a $700M tax bill. 

Holdfast is a 501(c)(4)non-profit that can make unlimited political donations — unlike the typical 501(c)(3) non-profit. 

Since a holdfast can make unlimited political donations, 501(c)(4) isn’t eligible for income-tax deductions.

Chouinard will owe about $17.5 million in taxes for the shares he transferred to the Patagonia Purpose trust.

FedEx

FedEx lowered its Q4 earnings expectations last Friday, citing continuing increases in fuel as the primary cause. 

The company now expects profits of $1.45 to $1.50 per share for three months ending on May 31st. The company’s previous estimates predicted $1.60 to $1.80 per share.

CFO Alan B. Graf Jr. said, “…our estimated fuel costs for the quarter have increased more than 7 percent or $100 million from our previous estimate.” 

Customers are paying surcharges to help offset fuel expenses, but “they cannot keep pace in the short-term with rapidly rising fuel prices.”

Graf also mentioned that the new earnings forecast “assumes no additional increases to the current fuel price environment and no further weakening of the economy.”

Bed Bath & Beyond

Bed Bath and Beyond released a list of 56 stores it plans to close to stabilize the struggling business. Locations include 20 states, such as New York, New Jersey, Florida, & California.

The company has previously announced it will lay off 20% of their workforce and close 94 other stores in addition to the initial list of 56. 

Also, Bed Bath and Beyond obtained $500M in financing as it plans significant restructuring. 

Jim Beam 

Bourbon producer Jim Beam plans a $400M expansion at their Kentucky Distillery plant. 

The expansion will increase production by 50% to produce Jim Beam White and Black label bourbon. Carlo Coppola, managing director, said the development project would support overseas sales growth in European and Asian markets.

The expansion will reportedly decrease greenhouse gas emissions by 50%. In order to reach this goal, Jim beam partnered with 3 Rivers Energy to construct a facility to turn bourbon waste into biogas. The biogas will be piped directly back to the Distillery across the street. 

The project is expected to be completed in 2024 and powered by 65% renewable natural gas.

Starbucks 

A Starbucks branded ready-to-drink coffee has issued a recall over concerns of metal fragments in the beverage. 

221 cases of the 15 oz Starbucks Vanilla Espresso Triple Shot are being recalled in 7 states: Arizona, Arkansas, Florida, Illinois, Indiana, Oklahoma, and Texas. The Beverages have a best-by date of March 20th, 2023.

Although the drink is branded as Starbucks, the beverage is distributed by PepsiCo.