Key Takeaways
- Intel (INTC) announced a massive restructuring, including 24,000 job cuts in 2025 and the cancellation of major factory projects in Germany and Poland, amidst a $2.9 billion quarterly loss.
- Volkswagen (VWAGY) slashed its full-year operating return on sales guidance to 4%-5% and now expects flat sales year-over-year, citing a €1.3 billion impact from US trade tariffs in the first half of 2025.
- ENI (E) reported robust Q2 2025 results, with adjusted net income of €1.13 billion and adjusted operating profit of €1.89 billion, both surpassing analyst estimates.
- Rémy Cointreau (RCO) delivered better-than-expected Q1 2025-26 organic revenue growth of +5.7%, driven by strong performance in the Americas and Liqueurs & Spirits.
- Japan's retail sector experienced a significant downturn in June, with nationwide department store sales falling -7.8% year-over-year and Tokyo sales plummeting -10.6%.
Intel (INTC) is undertaking a sweeping restructuring, announcing plans to eliminate approximately 24,000 jobs in 2025, which represents roughly a quarter of its workforce. This move aims to reduce the company's core employee count to 75,000 by year-end. As part of these aggressive cost-cutting measures, Intel is halting work on major factory projects, including a multibillion-dollar "mega-fab" in Germany and an assembly and test facility in Poland. The chipmaker also plans to consolidate its Costa Rica operations by moving them to Vietnam and Malaysia, impacting over 2,000 employees. The announcements come as Intel reported a $2.9 billion quarterly loss on $12.9 billion in revenue, marking its sixth consecutive quarter in the red. The company seeks to reduce operating expenses by $17 billion this year and refocus on its core business, particularly AI chips.
Automotive giant Volkswagen (VWAGY) has issued a revised outlook for the full year after its Q2 2025 earnings revealed significant pressure from trade tariffs. The company reported Q2 revenue of €80.8 billion and an operating profit of €3.83 billion, both slightly below analyst expectations. Critically, Volkswagen lowered its full-year operating return on sales (ROS) guidance to 4%-5% from its previous range of 5.5%-6.5%. Full-year sales are now projected to be flat year-over-year, a downgrade from the prior expectation of up to 5% growth. [Headline] The company's first-half results were heavily impacted by US trade tariffs, incurring costs of €1.3 billion year-to-date. Volkswagen of America separately reported a 29% year-over-year decrease in its Q2 2025 sales.
In contrast, European energy major ENI (E) delivered a strong Q2 2025 earnings report, with adjusted net income reaching €1.13 billion, comfortably exceeding the estimated €932.6 million. The company's adjusted operating profit stood at €1.89 billion, surpassing the €1.8 billion estimate. ENI's pro forma adjusted EBIT was €2.68 billion. Despite a challenging economic environment with weaker commodity prices and a falling U.S. dollar, the company maintained production at 1.67 million barrels of oil equivalent per day (boe/d), close to estimates.
French spirits group Rémy Cointreau (RCO) also showed signs of recovery in its Q1 2025-26 earnings. The company reported revenue of €220.8 million, achieving +5.7% organic revenue growth, which outperformed analyst estimates. This positive performance was particularly driven by a strong rebound in sales in the Americas and robust growth in its Liqueurs & Spirits division, which saw a +17.3% organic increase. Rémy Cointreau noted that it lifted its profit guidance and anticipates a maximum net impact of €45 million from averted China and US tariffs. The company expects to return to organic high single-digit growth in 2025-2026, with organic operating profit growth projected between 8% and 12% for the fiscal year, excluding potential tariff impacts.
Meanwhile, Japan's retail sector faced a significant slowdown in June. Nationwide department store sales declined by -7.8% year-over-year, a sharper drop than the previous month. [Headline] Tokyo department store sales experienced an even steeper fall, plummeting -10.6% year-over-year, reversing a prior positive trend. [Headline] This broader decline in consumer spending is partly attributed to a substantial decrease in tax-free sales, which fell 40% year-on-year in May for department stores nationwide. The number of foreign shoppers also decreased by 5.4% in May, marking the first negative growth in over three years. Factors contributing to the slump include shifts in foreign tourist shopping patterns, a stronger yen, and price increases for luxury brands.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.