THE WALL STREET JOURNAL. Thursday, November 14, 2019 |B3
Its third-quarter revenue
jumped to 1.54 billion yuan
($215.7 million). On average,
the chain had 9.3 million
monthly transacting custom-
ers for the quarter, compared
with 1.9 million a year in the
same period last year.
“I believe Luckin Coffee will
reach its goal to become the
largest coffee player in China
by the end of this year,”
Charles Lu, Luckin’s co-
founder and chairman, said on
a call with analysts and inves-
tors. “For those who spend
time in China, you can see that
Luckin Coffee is already part
of the daily life in China.”
Apart from its coffee retail-
ing, Luckin is counting on tea,
which accounted for about
20% of the company’s sales of
freshly brewed drinks for the
quarter. The company in July
began offering its Luckin Tea
products nationwide in China,
with beverages such as bubbletea—milk tea topped with tap-
ioca balls—fruit tea and tea
macchiato.
Luckin Tea’s launch and a
rise in cost of materials con-
tributed to operating expenses
of 2.13 billion yuan, up from
726.4 million yuan in last
year’s third quarter. The com-
pany’s loss widened to 531.9
million yuan from 484.9 mil-
lion yuan.
Third-quarter sales of
freshly brewed drinks shot up
to 1.15 billion yuan from 192.7
million yuan.
For the fourth quarter, the
company said it sees revenue
from products of 2.1 billionyuan to 2.2 billion yuan, ex-
cluding revenue generated
from stores operated under a
new retail-partnership model.
Luckin’s delivery system
guarantees shipment within a
half-hour in major cities, and
Starbucks has responded by
expanding its delivery busi-
ness in the country.
Starbucks faces tough com-
petition in China, its second-
biggest market after the U.S.
Consumer spending in China
has slowed, and Starbucks has
become a target for democ-
racy protesters in Hong Kong
who are critical of the com-
pany’s franchisee there.Shares of Luckin Coffee
Inc. rose sharply after the Bei-
jing-based chain reported a
more-than-sixfold increase in
revenue as it added stores and
expanded its offerings beyond
coffee.
The company, founded in
October 2017, had 3,680 stores
during the third quarter—
many just feet away from a
Starbucks cafe—up from 1,189
stores in the year-earlier pe-
riod. Backed by venture capital
and run by local managers,
Luckin integrated delivery into
the service at its bare-bones
stores from the outset and has
become a rival to Starbucks
Corp. in China.
American depositary shares
of Luckin rose 13% to $21.46
on Wednesday. The company
went public in the U.S. in May
at an initial price of $17 a
share.BYDAVESEBASTIANStarbucks Rival Posts Higher Revenue
Amid Bid to Take On U.S. Chain in China
BUSINESS WATCH
CISCO SYSTEMS
Revenue Decline
Forecast for Quarter
Networking-equipment com-
pany Cisco Systems Inc. pro-
jected the first quarterly revenue
decline in more than two years,
blaming what it called a pause in
customer spending given political
and economic apprehension.
The company, considered a
proxy for corporate high-tech
hardware demand, expects reve-
nue to fall 3% to 5% this quarter.
Analysts polled by FactSet were
expecting revenue to increase
about 2.4% to $12.75 billion.
Shares fell 5% to $45.98 in
after-hours trading.
Revenue for the quarter
ended Oct. 26 rose 0.7% to
$13.16 billion, beating analysts’
projections.
—Maria Armental
BHP GROUP
Mining Firm Names
Unit Head as CEO
BHP Group Ltd. named Mike
Henry as its chief executive, opt-
ing for his experience running
the most profitable operation of
the global mining company after
a tumultuous period of swings in
commodity prices and exiting
legacy assets.
Andrew Mackenzie, who has
led the company for more than
six years, will retire at the end
of the year. Mr. Henry will take
on the role of CEO on Jan. 1, the
world’s largest listed mining
company said.
—Robb M. StewartAMERICAN OUTDOOR BRANDSSmith & Wesson
To Be Split OffAmerican Outdoor Brands
Corp. said Wednesday its board
approved aplan to separate the
firearms maker Smith & Wes-
son Brands Inc. from its outdoor
products and accessories busi-
ness.
The transaction would be car-
ried out as a tax-free stock divi-
dend to shareholders, the com-
pany said.
Company Chairman Barry M.
Monheit cited “significant
changes in the political climate
as well as the economic, invest-
ing, and insurance markets since
we embarked upon what we be-
lieve have been our very suc-
cessful diversification efforts.”
—Stephen Nakrosis745 Fifth Avenue
(Between 57
th
&58
th
Streets, 4
th
Floor)ALVR.com • 212.752.1727
Antique Jewelry
Fabergé
Objets de vitrine
A LA VIEILLE RUSSIE
Established 1851
Special exhibition of post-war jewelry featuring works by
Cartier,Van Cleef & Arpels, Mauboussin,Verdura, Pierre Sterlé,
Angela Cummings, David Thomas, and Andrew GrimaDeceptively Modern Jewelry: 1940s - 1980s
October 23 - November 15, 2019
Monday - Friday: 11 AM-4PMExhibition
ClosingTOMORROW,
NOVEMBER 15!
NOTICE OF REDEMPTION BY
PS BUSINESS PARKS, INC.
OF ALL OUTSTANDING DEPOSITARY SHARES
REPRESENTING INTERESTS IN ITS
5.750% CUMULATIVE PREFERRED STOCK, SERIES U
AND 5.700% CUMULATIVE PREFERRED STOCK, SERIES VNOTICE IS HEREBY GIVEN that, pursuant to Section 3.05 (c)(1) of the Restated Articles
of Incorporation of PS Business Parks, Inc. (“PS Business Parks”) and Section 2.8 of the Deposit
Agreement dated as of May 3, 2012 (the “Deposit Agreement”) by and among PS Business Parks,
American Stock Transfer & Trust Company, LLC as depositary (the “Preferred Stock Depositary”)
and the holders from time to time of the depositary receipts issued by the Preferred Stock
Depositary under the Deposit Agreement, PS Business Parks has called for redemption, and will
redeem, on December 30, 2019 (the “Redemption Date”), all of the shares of 5.750% Cumulative
Preferred Stock, Series U (“Preferred Stock”) and 5.700% Cumulative Preferred Stock, Series V
(“Preferred Stock”), and, in accordance with the Deposit Agreement, the Preferred Stock Depositary
will redeem, on the Redemption Date, all of the outstanding depositary shares (the “Depositary
Shares”) representing interests in the Preferred Stock.
On the Redemption Date, (1) PS Business Parks will deliver, or cause to be delivered, out of
funds legally available therefore, to the Preferred Stock Depositary (a) $230,000,000 in redemption
of all of the 5.750% Cumulative Preferred Stock, Series U and (b) $110,000,000 in redemption of all
of the 5.700% Cumulative Preferred Stock, Series V and (2) the Preferred Stock Depositary will pay
to the holders of record of the Depositary Shares, in exchange for each Depositary Share, $25.00
(the “Redemption Price”).
Depositary Receipts representing the Depositary Shares, accompanied by proper instruments
of assignment and transfer if payment is to be made other than to the registered holder(s), shall be
surrendered for redemption at the following place:
By Mail, Overnight Courier or By Hand
American Stock Transfer & Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Delivery of the foregoing instruments and documents to any other address shall not constitute valid
delivery.
On or before the Redemption Date, PS Business Parks will deposit with American Stock
Transfer & Trust Company, LLC, the Redemption Price, in trust for the pro rata benefit of the holders
of the Depositary Shares called for redemption. On and after the Redemption Date, all Depositary
Shares and shares of Preferred Stock shall be deemed no longer to be outstanding; dividends
thereon shall cease to accrue; and all rights with respect to the Depositary Shares and shares of
Preferred Stock called for redemption shall forthwith at the close of business on the Redemption
Date cease and terminate, except only the right of the holders thereof to receive the Redemption
Price of the shares so redeemed, but without interest, upon surrender of their Depositary Receipts.
Any moneys deposited by PS Business Parks and unclaimed at the end of five years from the
Redemption Date shall, to the extent permitted by law, be repaid to PS Business Parks, after which
repayment the holders of the Depositary Shares called for redemption shall look only to PS Business
Parks for the payment thereof.
November 14, 2019 PS BUSINESS PARKS, INC.The Beijing-based Luckin Coffee, which went public in the U.S. in May, more than tripled its number of stores over the past year.YAN CONG FOR THE WALL STREET JOURNALBUSINESS NEWS
ter less than four years in the
role. The company said he
would remain on its board as a
nonexecutive director.
At the start of the year Alan
Jope became Unilever’s new
CEO, succeeding longtime
chief Paul Polman.
Under Mr. Jope, the com-
pany has worked to convince
shoppers to spend more on
higher-end personal-care prod-
ucts, while fending off upstart
competitors. It is also dealing
with volatility in key emerging
markets like India and Brazil,
as well as sluggish growth in
Europe and the U.S.
Unilever said Mr. Dekkers,
62 years old, was stepping
down as chairman so he can
focus on Novalis LifeSciences,
an investment and advisory
business he set up in 2017.During his tenure, Unilever
made big changes to its port-
folio, selling its struggling
spreads business and buying
higher-growth beauty brands
and malt drink Horlicks. It also
fended off a $143 billion hos-
tile bid by Kraft Heinz Co.
However, Mr. Dekkers, along
with Mr. Polman as CEO, also
faced criticism over a proposal
last year to ditch Unilever’s
London headquarters and con-
solidate the company’s base in
the Dutch city of Rotterdam.
That plan was aborted after
opposition from investors,
some of whom weren’t pleased
with how Mr. Dekkers handled
the matter, according to a per-
son familiar with the discus-
sions. Mr. Dekkers also upset
some shareholders during
meetings held in the wake ofthe Kraft bid, while others
bristled at his abrupt handling
of questions on Unilever’s per-
formance at its 2017 share-
holder meeting, the personadded.
Unilever declined to com-
ment further on the rationale
for Mr. Dekkers’ departure and
didn’t make him available for
comment. The usual maximum
tenure for a Unilever chairman
is nine years.
While Mr. Dekkers earned a
reputation in his previous role
as CEO of Bayer AG for shak-
ing up what critics called a
staid corporate culture, the ap-
pointment of Mr. Andersen is
unlikely to bring major shifts
in strategy.
The 61-year-old Dane has
served on Unilever’s board
since April 2015.
The fact that Mr. Andersen
is Danish, rather than British
or Dutch, is also seen as a pos-
itive within the context of the
London-Rotterdam tug of war,the person familiar said.
Maersk ousted Mr. Ander-
sen as CEO in 2016 when the
company was battling the
worst ocean-shipping down-
turn in years and a historic oil-
price rout. It then split into
two units, focused on trans-
port and energy, which inves-
tors welcomed.
Before his time at Maersk,
Mr. Andersen was CEO of Dan-
ish brewer Carlsberg A/S from
2001 to 2007.
Announcing his elevation
Wednesday, Unilever cited Mr.
Andersen’s “significant busi-
ness experience” and said he
would step down as a director
of BP PLC and as chairman of
closely held Salling Group A/S.
He plans to remain as chair-
man of Dutch paint giant Ak-
zoNobel NV.Unilever PLC has tapped
the former head of Danish
shipping company A.P. Moller
Maersk as its new chairman,
the second big change in the
consumer giant’s top ranks in
the past year.
The maker of Hellmann’s
mayonnaise and Dove soap
said Wednesday that Unilever
board member Nils Andersen
would replace Marijn Dekkers
as chairman with immediate
effect. Mr. Dekkers’ departure
wasn’t expected and comes af-
BYSAABIRACHAUDHURI
Unilever Makes Second Change at the Top
Consumer-goods
maker names new
chairman, after earlier
changing its CEO
Nils Andersen headed Maersk.SIMON DAWSON/BLOOMBERG NEWSincluding Humira, as a new
company named AbbVie Inc.,
after Mr. White concluded that
business was headed in a dif-
ferent direction than the rest
of Abbott’s divisions.
More recently, Abbott in
2017 acquired St. Jude Medical
for $23.6 billion, expanding
Abbott’s medical-device busi-
ness.
Mr. White said he has
“changed the company a cou-
ple of times along the way” to
adapt to changes in technol-
ogy and the practice of medi-
cine.
Evercore ISI analyst Vijay
Kumar said in a research note
that Mr. White was a “larger
than life figure” at Abbott,
who delivered strong returns
for shareholders. Mr. White, a
former McKinsey & Co. consul-
tant, joined Abbott in 1984.
Abbott’s shares were rela-
tively flat Wednesday on the
New York Stock Exchange,
closing at $84.22.
Mr. Ford, 46, was named
president of Abbott in 2018, a
move that telegraphed the
succession plan. He previously
led Abbott’s medical-device
business, oversaw the launch
of the fast-selling FreeStyle Li-
bre glucose monitor for diabe-
tes and led the integration of
the St. Jude acquisition.
Mr. Ford said in an inter-
view he plans to focus on con-
tinued growth of FreeStyle Li-
bre, diagnostics and Abbott’s
emerging-markets business.
Mindful of Silicon Valley’s
growing interest in health
care, Mr. Ford also said he
plans to make sure Abbott
adapts to consumers’ use of
phones and other connected
devices to monitor their
health.
Abbott’s board has named
Mr. Ford a director. He has a
bachelor’s degree from Boston
College and a master’s degree
in business administration
from the University of Califor-
nia, Berkeley, Haas School of
Business.Abbott Laboratories said
Chief Executive Miles D.
White, who oversaw the trans-
formation of the health-care-
products maker with a series
of acquisitions and spinoffs in
more than 20 years at the
helm, will step down as CEO in
March 2020.
The Abbott Park, Ill., com-
pany, which makes heart de-
vices, Similac baby formula
and diagnostic tests, named
Abbott’s president and operat-
ing chief, Robert B. Ford, to
succeed Mr. White, who will
remain executive chairman.
Mr. Ford has led various
Abbott businesses during his
23 years with the company.
Mr. White has led Abbott
since 1999, one of the longest
CEO tenures among major U.S.
companies.
“It’s a good time to transi-
tion,” Mr. White said in an in-
terview, because he is 64 years
of age and his successor is
ready. “I think the company’s
in the best shape it’s ever
been in.”
Abbott’s annual sales grew
to $30.6 billion from about
$12.5 billion under Mr. White.
One of his most consequential
deals was Abbott’s 2001 acqui-
sition of Knoll Pharmaceuti-
cals from BASF for$7.2bil-
lion, which landed Abbott the
arthritis drug Humira.
Humira, which also treats a
range of other diseases, went
on to become the highest-sell-
ing prescription drug in the
world.
Abbott in 2013 spun off its
core pharmaceutical business,
BYPETERLOFTUS
Abbott’s White
To Step Down as
Chief Executive
Annual sales grew to
$30.6 billion from
about $12.5 billion
under the CEO.
NYwsj_20191114_b003_p2jw318000_0_b00300_1____ns2019.crop.pdf 1 14-Nov-19 07:07:07