Sunday, 5 January 2014

Engine maker Cosworth puts ex-Tata Motors boss on executive team

Carl-Peter Forster joined by former Williams F1 chairman and ex-MEP as Cosworth looks to recover from flotation failure
Cosworth Ford Zetec R V10
A Cosworth engineer works on a Zetec R V10 engine during the company's F1 heyday. Photograph: AP
Cosworth, the struggling car engine manufacturer, has appointed three high-profile executives in a bid to boost its fortunes after its owners failed to float the company in 2012.
The new appointments to the board of the Northamptonshire-based company were made on Thursday and are led by Carl-Peter Forster, former chief executive of Tata Motors, the parent of Jaguar Land Rover. He is joined by Adam Parr, a previous chairman of the Williams Formula One team, and Alan Donnelly a former MEP who founded communications agency Sovereign Strategy, which counts amongst its clients Bloomberg and Chinese telecoms firm Huawei.
Parr joined Williams as chief executive in 2006 before becoming chairman in 2010. He steered the team to a flotation on Frankfurt's junior exchange in 2011 but its performance was inadequate on track and that year he presided over the worst season in its 36-year history when it finished ninth in the standings.
Cosworth is going through a similar dip in performance as it reversed from a £3.9m profit in 2011 to a £7.1m net loss the following year as uncertainty over its ownership led to a crash in sales and a breach of its banking covenants. Cosworth quit Formula One engine manufacturing last year. It was founded in 1958 by the engineers Mike Costin and Keith Duckworth. In the 1980s it became synonymous with boy-racers as it helped to create the Ford Sierra Cosworth. The company was bought by Ford in the 1990s and then sold to its current owners, the venture capitalists Gerry Forsythe and Kevin Kalkhoven, in 2004.
The duo put Cosworth up for sale in October 2012 after trying for more than a year to float the company. They instructed investment bank UBS to find a buyer and last year Cosworth's chief executive Hal Reisiger said that "order intake was impacted as key customers waited to discover the outcome". Its accounts to 31 December 2012 show that revenue dropped 24% to £41.5m.

HTC net profit worse than expected in fourth quarter despite cost cutting

Smartphone maker reports net profit of T$0.3bn (£6.1m), despite outsourcing production and selling stake in Beats Electronics
HTC fourth quarter profit worse than expected despite cost cutting
HTC's headquarters in Taipei, Taiwan. Photograph: Str/EPA
Taiwanese smartphone maker HTC has reported a worse-than-expected net fourth-quarter profit despite aggressive cost cutting and more than £50m proceeds from selling its stake in the company behind Beats by Dr Dre headphones.
HTC reported net profit of T$0.3bn (£6.1m), compared to a net loss of T$2.97bn (£60m) in the previous quarter and profit of T$1.01bn (£20.7m) in the same quarter of 2012.
The figure lags expected net profit of T$721.71m (£14.7m), according to Thomson Reuters.
The number highlights how quickly problems have piled up at a company that just over two years ago supplied one in every 10 smartphones sold around the world.
The company, which has lost nearly three-quarters of its market value in the last two years, is now worth about £2.4bn, dwarfed by rivals Appleand Samsung Electronics.
New management installed in the last quarter to tackle that slide must persuade customers the brand can still stand for stylish, feature-loaded phones, while keeping a lid on development costs.
Despite its latest flagship product, the HTC One, winning rave reviews, the company's global share of the smartphone market has declined to 2.2% in the third quarter of 2013 from a peak of 10.3% in the third quarter of 2011, data from research firm Gartner shows.
While the company's recent "Here's to Change" campaign has seen an advertising revamp featuring Iron Man star Robert Downey Jr, analysts remain skeptical about the firm's ability to differentiate its brand image.
The company has embarked on a cost-cutting campaign that includes buying its chips more cheaply and outsourcing production. It also sold its stake in headphone brand Beats Electronics, booking a one-time pre-tax profit of T$2.5bn (£51.8m), which would be recorded in the fourth quarter.

Soaring Microsoft shares boosted Bill Gates's fortune by $15.8bn in 2013

Gates, who regained world's richest man title from Mexican telecoms magnate Carlos Slim in May, now has $78.5bn
Bill Gates and Melinda
Less than a quarter of Bill Gates' wealth is held in Microsoft shares – but he is still the largest individual shareholder. Photograph: Getty
The 300 richest people on the planet are $524bn (£319bn) better off than this time last year, with the world's richest man, Microsoft founderBill Gates, increasing his fortune by $15.8bn to $78.5bn over 2013.
Research by Bloomberg's Billionaires Index showed that the world's 300 richest are now collectively worth $3.7tn – more than one and a half times Britain's GDP.
Gates, who regained the title of the world's richest man in May from Mexican telecoms magnate Carlos Slim, made most of his gains from the 40% increase in the price of Microsoft shares. He owns about 4.5% of the company he founded in 1975 and is still the largest individual shareholder.
He also benefited from rallies in other stocks in his portfolio, including Canadian National Railway company (up 34%) and hand sanitiser company Ecolab (up 45%). America's S&P 500 index last year made its biggest gains since 1997.
Gates holds stakes in about 35 public-listed companies and many private firms, including Four Season Hotels, via investment company Cascade Investments. Less than a quarter of his wealth is held in Microsoft shares. He has donated $28bn to the Bill & Melinda Gates Foundation, which is trying to eradicate polio, malaria and measles.
The second biggest gainer in 2013 was Sheldon Adelson, the founder of Las Vegas Sands, the world's largest casino company. His fortune grew by $14.4bn following a 71% rise in the company's share price. Despite its name, most of the company's growth came from the tiny Chinese city of Macau, where casinos collected $45bn in gambling revenues last year – about seven times as much as in Sin City – according to estimates.
Only 70 of the 300 on the list made a loss last year. The biggest was Eike Batista, who has plummeted from being ranked the world's eighth richest man in March 2012 to having a "negative net worth", according to Bloomberg.
Eike, a Brazilian who had made $30bn from oil and gas exploration, lost it all when his company, Oleo e Gas Participacoes, filed for bankruptcy protection in October. Four years ago he had boasted to Forbes magazine that he would become the world's richest man.
Slim was also one of the biggest losers, with his net worth dropping $1.4bn in the course of last year after Mexico's government tried to reduce the dominance of his América Móvil mobile phone company.
More than 100 billionaires were created in 2013, including the youngest female billionaire, Lynsi Torres, the 31-year-old owner and president of US burger chain In-N-Out.
• The headline and subheading on this article were amended on Friday 3 January 2014 to make it clear that Bill Gates regained the title of world's richest man in May last year.

Sebastian Vettel wins seventh straight race to equal Michael Schumacher

• German driver clinched victory in Abu Dhabi Grand Prix
• Mark Webber finished second, with Nico Rosberg third
Sebastian Vettel
Sebastian Vettel equalled Michael Schumacher's record of seven straight F1 wins in a season. Photograph: Valdrin Xhemaj/EPA
The Abu Dhabi Grand Prix is the only one that starts in sunshine and ends in twilight but for the 21 drivers who follow Sebastian Vettel round in circles, every race must feel like this.
There was an excoriating sense of deja vu as Vettel did his "doughnuts", spins on the pit straight, and squirted his champagne from the podium that now feels like a throne, with no abdication in sight.
This was his 11th win of the season, the 37th of an extraordinary career but at least there was a fresh sense of emotion. His parents, Norbert and Heike, were there to watch as he equalled Michael Schumacher's 2004 record of seven straight victories.
If he wins the final two races of the year, in Austin and Brazil, he will equal the record of nine wins in as many races set by Alberto Ascari, though that was over two seasons. He would also equal Schumacher's record of 13 wins in one year.
With pole man Mark Webber finishing second this was Red Bull's 15th one-two result in their brief history, their 100th podium too.
Even Vettel has rarely been as dominant as this, winning by half a minute and it could have been more, for his advantage stood at 40 seconds at the time of his second pit stop on lap 37. After that it was cruise control.
Through the smoke from the fireworks, which was supplemented by the burning rubber provided by Vettel and Webber as they cavorted at the end, there were more meaningful matters to discuss.
The troubled Kimi Raikkonen had a bitter-sweet day. His race was over after Turn One, when his light collision with Giedo ven der Garde's Caterham broke his suspension. His exit from the track looked quicker that his start off the grid. It was his first opening-lap retirement since 2006.
The good news for him is that a deal appears to have been brokered between his manager, Steve Robertson, and Lotus. If this is confirmed by lawyers, Raikkonen will race in the last two races later in the month. On Friday he threatened to boycott those venues, claiming he had been paid nothing all season.
It was an important race for Mercedes. With Nico Rosberg finishing third, and Lewis Hamilton seventh, they extended their lead in second place in the constructors' championship to 11 points over Ferrari.
It was, however, the fifth time in six races, going back to the Italian round in September, that Hamilton had been bettered by his Mercedes team-mate. Hamilton is still the quicker man on one-lap Saturday qualifying but the signs are that the German has a greater mastery of his Pirellis, though Hamilton was also unlucky to be held up by Adrian Sutil and Esteban Gutiérrez.
This was also a significant day for Paul di Resta, who is fighting for his seat at Force India, where he is fighting off competition from Nico Hülkenberg, current team-mate Sutil and possibly Kevin Magnussen, the bright young thing from the McLaren stable.
Employing a one-stop strategy, Di Resta finished sixth after a stirring battle for fifth place that was much more compelling than anything happening at the pointy end of the race.
As for McLaren, Sergio Pérez – another threatened driver – beat the admittedly unfortunate Jenson Button for the second time in as many races. McLaren are expected to confirm, imminently, that Pérez will partner Button – who suffered early damage – once again in 2014. There was another strong drive by Ferrari's Felipe Massa, though he finished only eighth.
His team-mate, Fernando Alonso who finished fifth, had precautionary checks in hospital after hurting his back on a heavy jolt over the kerbs when he ran wide to avoid a collision with Jean-Eric Vergne's Toro Rosso. "I still have all my teeth after the impact," he said. "My back is obviously in pain a little bit because it was a big hit." A team spokesman said he had been given the all-clear.
At the end of the evening, though, it was Vettel's performance to which everyone returned. Even Red Bull's team principal, Christian Horner, who could have been excused for exhausting all his superlatives in recent weeks, looked mightily impressed. All over again.
He said: "It was absolutely mind-blowing in many respects. After the start, Seb got his head down and just disappeared. Not only did he have the pace but he kept asking how the tyres were, and they were fine.
"He was truly dominant. He has hit a patch of form that is incredible. We know Mark Webber is a very fine racing driver. And in a race which didn't have any safety cars or issues, to achieve what he's done is quite mind-blowing.
"I don't have words to describe how phenomenal he is." He kept searching, though. So must we all

Roger Federer's defeat to Lleyton Hewitt shows jitters have returned

Swiss's three-set loss, despite has a new racket and new coach, Stefan Edberg, reveals weaknesses in his game that must be addressed if he is to mount a serious Australian Open challenge
Federer of Switzerland
Former world No 1 Roger Federer suffers a 6-1, 4-6, 6-3 defeat in Brisbane at the hands of Lleyton Hewitt. Photograph: Jason Reed/Reuters
The jitters have returned to Roger Federer's racket – or introduced themselves to his new one – and, although there is no cause for panic, mild concern is in order. The timing – like his wayward backhand when losing in three sets to Lleyton Hewitt in Brisbane on Sunday – is not ideal.
A week before the Australian Open, Federer needed a convincing performance – and preferably another win – to consolidate what has been an encouraging return to the Tour, with a new coach, Stefan Edberg, to go with the new cudgel.
He got at least some of that after a shaky start to the final of the Brisbane International – his 14 aces mostly came at danger moments – but the 32-year-old Hewitt, one of the few consistently dangerous players older than him on Tour, gave him no peace to win 6-1, 4-6, 6-3.
Federer described it as "a great final", which was only a slight exaggeration. "Lleyton was better than me today," he conceded, and that was on the money.
Hewitt, enjoying a revival in form, ought not to be relegated to the role of dancing partner; it was his 29th career title, and one he will cherish for its recent rarity – his first since Halle in 2010 when his opponent was also Federer, victory which broke a 15-match losing streak against the Swiss.
Expectations on them vary far more than the six months that separate them in age, and the 54 ranking points. If Hewitt, the perennial fighter, can make a statement in Melbourne, maybe get into the second week, he will be pleased; if Federer, the world No6, does not get that far, he will hurt badly.
He alluded afterwards to the pending arrival of a third child, promising to return in 2015. Before then, he has a tough campaign ahead to not only restore his aura but to make an impression on the front runners.
Hewitt lobbed, smashed and scurried with his trademark enthusiasm to hustle Federer out of the first set.
Tony Roche, the Australian who has worked with both players, revealed his affiliation when Federer bashed the net with a loose forehand to go 1-4 down. If Hewitt heard Roche's cheers from the stands, he did not show it. There was plenty of work left to do, and the South Australian was enthused by his opponent's raggedness but he wasted a break point in the second that would have tied it up, and Federer found new energy.
Having said that concerns over the back pain that troubled him briefly last year had long passed, he moved well enough and often hit the ball with his old fluency, striving too for advantage at the net (which Edberg would have applauded), but his backhand let him down too often and, as Novak Djokovic pointed out in London in November, he has definitely slowed.
A hot run of five aces in a row gave him three set points, and his spirits rose when Hewitt pushed a forehand wide. Yet there was inevitability about the third set once the dogged Australian made Federer move to uncomfortable places behind the baseline, teasing him with the lob and, in one glorious exchange, passing him at the net.
So, not a lot has changed – yet – for Federer after a poor 2013. Had he won here, he would have equalled last year's tally and would have arrived in Melbourne on a roll. As it is, Rafael Nadal, who won in Qatar, will probably start favourite at the Australian Open.
"If I am playing the way that I played in the first set, I think I will be very competitive [in Australia]," the world No1 said after beating Gaël Monfils 6-1, 6-7, 6-2. Monfils, by the way, later withdrew from the Auckland tournament, claiming fatigue – on the fifth day of the year. Unless the Frenchman is injured, that is just not acceptable.
As for the other main contenders in Melbourne, Djokovic chose not to play this week, and Andy Murray had his preparation cut short – a bit surprised to lose to Florian Mayer in Doha after leading 6-3, 3-0. He is easing his body back into competition after back surgery in September and might regard reaching the quarters as a result.
Maybe someone else will fill the void. Milos Raonic, who has threatened for a couple of years to make his own big statement, sees it that way. "Someone else could break through," the Canadian said a few days ago.
"There's definitely the possibility for that, it's sport. There's so much unknown and so many variables. I think there's a lot of guys playing great, especially Juan Martín del Potro last year. He managed top five, missing a big part of the season as well. There's so many guys that can step up and challenge for that spot. I don't think it's a giveaway to those three guys [Nadal, Djokovic and Murray]."
In a year that might be more volatile than last year, maybe he's right.

Michael Schumacher was skiing at leisurely pace, says crash witness

Flight attendant from Essen says he was filming his girlfriend on slopes and captured Schumacher's accident in background
Méribel
The Méribel slopes where Michael Schumacher was injured while skiing. Photograph: David Ebener/Corbis
A new witness account of Michael Schumacher's skiing accident in the French Alps last Sunday has emerged, confirming suggestions that the former Formula One champion was not travelling very fast when the crash took place.
A skier told the news magazine Der Spiegel that Schumacher had been going "at a leisurely pace … 20 km/h max, not more".
The witness, a 35-year-old flight attendant from Essen in Germany, said he had stopped to film his girlfriend on his smartphone and accidentally captured Schumacher a few hundred metres away in the background straying into an off-piste area and losing his balance.
The man said he planned to hand the evidence to the Albertville prosecutor's office in France, which is investigating the accident on the Méribel slopes last Sunday.
Patrick Quincy, the Albertville prosecutor, told the Associated Press on Sunday that French investigators were taking steps to obtain a copy of the video.
Investigators are said to be in possession of a camera that was fixed to Schumacher's helmet. It is unclear if the device was switched on at the time of the accident, and whether or not it was damaged by the impact.
A video purporting to show amateur footage of the accident has been circulating on social media, but the clip – titled "Video: Moment de l'accident de Michael Schumacher! (EXCLUSIF)" – contains a computer virus.
When news of the accident first emerged last week, some newspapers reported that Schumacher had been travelling at up to 60mph.
Schumacher's manager, Sabine Kehm, has vehemently rejected this version of events, claiming that Schumacher entered deep snow at relatively low speed shortly after stopping to help up a friend's daughter who had fallen on the tracks.
She also denied suggestions that the family was reluctant to hand over the helmet camera. "It's false. Only Michael's health matters," Kehm was quoted as saying in the French papers.
The French prosecutor's office and the police say they will give more information about their inquiry into the accident in the next few days. "We will be holding a press conference on the progress of the investigation this week," Patrick Quincy, the public prosecutor at Albertville said. "In the meantime we ask for the circulation of false information about what I may or may not have said, or about elements of the inquiry to stop. Members of the Schumacher family also ask that their privacy is respected."
The former Formula One champion Mika Häkkinen has written a letter to Schumacher wishing his former rival a full recovery. The Finn, who is the same age as the German driver and who once suffered a life-threatening head injury during a training session, advises Schumacher to take his time to recover.
"Do me a favour: just this once don't try to beat the clock. You don't have to post your best time in this race. You have to take all the time you need," he said, signing off: "Take it easy, Mika."

Eusébio obituary

Graceful footballer with a fearsome right foot and an astonishing goal-scoring record
Eusébio was the prototype of a complete 21st-century striker
Eusébio was the prototype of a complete 21st-century striker. Photograph: Kent Gavin/Getty Images
Eusébio, who has died aged 71, was the greatest African footballer in the history of the game. He moved from his native Mozambique to the Portuguese club Benfica in 1961, blazing a trail from poverty to stardom that scores of young African footballers would follow, though none since has played with such grace or reached the benchmark he set.
He was the prototype of a complete 21st-century striker, decades ahead of his time; a superb athlete (he ran the 100 metres in 11 seconds at the age of 16) with explosive acceleration who could leave defenders trailing in his wake. He could also dribble, was good in the air and possessed a fearsome and highly accurate right foot.
His scoring record was astonishing. In 15 years at Benfica he scored an incredible 473 goals in 440 competitive games, plus many more in friendlies. He was top scorer seven times in the Portuguese league and was European Golden Boot winner twice. In his only appearance in the World Cup finals, in England in 1966, he won the Golden Boot for top scorer of the tournament, with nine goals in six games.
Eusébio da Silva Ferreira was born in the colonial capital of Lourenço Marques (present-day Maputo), the son of Laurindo António da Silva Ferreira, a white Angolan railroad worker, and Elisa Anissabeni, a black Mozambican. His father died when Eusébio was eight, and he was brought up in poverty before being signed by Sporting Clube de Lourenço Marques, a feeder club of Sporting Lisbon, at the age of 15.
Word of the prodigy soon spread beyond his home town – in fact his destiny was determined in a Lisbon barber shop. It was there that a coach from the Brazilian club São Paulo, who was touring Mozambique and later Portugal, waxed lyrical to an old friend about a young Mozambican he had spotted. The friend was Benfica's legendary coach Béla Guttmann, and he was so impressed with what he heard that the following week he flew to Mozambique and persuaded Eusébio's family to let him sign for Benfica.
This happened right under the noses of Benfica's rivals, Sporting, who disputed the legality of the transfer. Such was the ill-feeling between the two Lisbon clubs that, on Eusébio's arrival in Portugal in December 1960, Benfica had to hide him in a fishing village in the Algarve and ordered him to stay in his hotel room. It took Benfica five months of legal wrangling to register him, but as soon as the ink on his contract was dry, the footballing world learned what all the fuss had been about.
Eusébio scored a hat-trick on his Benfica debut, in June 1961. Two weeks later, in a friendly match in Paris, the team faced the Brazilian club Santos, and their great striker Pelé. With Benfica losing 4-0 and with no chance of winning, Guttmann brought on Eusébio in the second half. Within 20 minutes, he had scored another hat-trick. Pelé, along with everyone else watching, sensed the arrival of a future great.
Benfica were then reigning European and Portuguese champions, but Eusébio forced his way into their formidable side the following season. At the end of that season the club retained the European Cup, defeating the mighty Real Madrid, unbeaten in their previous five finals and lead byFerenc Puskas and Alfredo di Stefano, Eusébio's boyhood idol. The 19-year-old scored the last two goals in the 5-3 victory, and at the end of the game swapped shirts with Puskas, who had scored a hat-trick, a symbolic exchange between the game's greatest goal scorer and his heir apparent, before Benfica supporters carried their new king from the pitch on their shoulders. Europe's football writers voted him the continent's second-best player in his first full season as a professional.
Mozambique was a colony, Portuguese East Africa, until 1975, so Eusébio played his international career for Portugal. In England in 1966, he lit up the World Cup, outshining Pelé as the star of the tournament – though that was thanks partly to the brutal tackling of Eusébio's Portuguese team-mates, who literally kicked the Brazilian out of the tournament.
Eusébio scored twice in the 3-1 win over the reigning champions, Brazil, a game that set up the famous quarter-final with North Korea at Goodison Park. The underdogs were winning 3-0 until Eusébio almost single-handedly led the Portuguese recovery, scoring their first four goals in the eventual 5-3 victory.
In the semi-final, Portugal faced England at Wembley – though most English histories of the tournament gloss over the fact that this match had been scheduled for Goodison Park, where Portugal had already played twice and felt at home, until the English authorities connived to switch venues, forcing the Portuguese to catch a train to London the night before the match.
Eusébio was nullified by Nobby Stiles and England won 2-1, with Bobby Charlton scoring twice. Eusébio wept at the end of the game, and the occasion is still remembered as Jogo das Lágrimas (the Game of Tears) in Portugal. But even in defeat, Eusébio was the sensation of the World Cup.
He never again played in the finals of the World Cup, but two years later he was back at Wembley to face Manchester United in the European Cup final. Once again, Charlton scored two goals and inspired his team to victory, and again it was Stiles who marked Eusébio out of the game – rather more violently on this occasion.
Eusébio did have a chance to win the game in the dying minutes with a close-range shot on goal, but hit it straight at the United goalkeeper, Alex Stepney. It was typical of a man who always played in the Corinthian spirit that, even at a critical moment of such an important match, he put an arm around Stepney's shoulder to praise him for the save.
This was Eusébio's third European Cup final defeat in six years, after losing to AC Milan in 1963 and Inter Milan in 1965, and his last on the big stage, but he continued to win trophies and score goals for Benfica for another seven years. In 15 years with the club he won 11 league titles, five Portuguese cups, was European Player of the Year and the first player to win the European Golden Boot award in 1968, and again in 1973.
In the mid-70s Eusébio followed the well-trodden path then taken by ageing world-class players, to the burgeoning North American Soccer League, for one last lucrative payday. He turned out for Boston Minutemen, Las Vegas Quicksilvers and Toronto Metros-Croatia, helping the last to win the NASL title in 1976.
He lived in Portugal for the rest of his life (although he frequently returned to Mozambique, where he was hero-worshipped), acting as a football ambassador for both his adopted country and Benfica, where he is immortalised in a statue at the club's stadium, the Estádio da Luz.
He is survived by his wife, Flora, two daughters and several grandchildren.
• Eusébio da Silva Ferreira, footballer, born 25 January 1942; died 5 January 2014