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Market Update

BASF, Danone Net Decline; Anglo American Net Swings to Loss


Author: Nigel Thomas
ticker.com
Last Update: 12:27 PM ET July 24 2015

4:00 PM Frankfurt – Anglo American net swung to a loss to $3 billion. Air France KLM revenues jumped 3%. BASF profit declined 10% and plans to split its pigments business. Danone net tumbled 32% and plans to swap its Dumex infant formula unit in China. Vodafone revenues fell.

In London trading, FTSE 100 index fell 25.96 or 0.4% to 6,629.12 and in Frankfurt the DAX index slipped 71.40 or 0.6% to 11,446.31.

In Paris, CAC 40 index gained 17.82 or 0.4% to 5,073.47.

For the week, FTSE 100 index slumped 2.2% and the DAX index dropped 2% and the CAC 40 index decreased 1%.

Anglo American Plc increased 1% to 814.50 pence after the U.K.-based mining company reported group revenues in the first-half ending in June plunged 18.7% to $11.56 billion from $14.22 billion in a year ago period.

Net in the period swung to a loss from a year ago to $3.02 billion compared to profit of $1.46 and diluted loss per share swung to $2.23 from $1.14.

The miner plans to reduce number of assets to 40 from 55 and also intends to reduce total employees by 35%. The company is also targeting total cost saving of about $500 million.

Air France KLM SA jumped 2.9% to €6.79 after the France-based airline company said revenues in the first-half ending in June increased 3% to €6.64 billion from €6.45 billion in a year ago period.

The passenger traffic in the period increased 0.8% to 23.58 million and the capacity of available seat kilometers rose 0.2% to 85.95 million. Unit revenue per available seat kilometer declined 4.8%.

Total passenger revenues increased 2% to 9.663 billion while total cargo revenues dropped 10% to €604 million but revenues in the maintenance business climbed 24.1% to €1.01 billion.

BASF SE declined 3.4% to €80.07 after the Germany-based chemical maker reported sales in the first-half ending in June jumped 3% to €39.15 billion from €37.97 billion in a year ago period.

Net profit in the period declined 10% from a year ago to €2.44 billion compared to €2.72 billion and earnings per share slipped to €2.66 from €2.96.

Separately, the company intends to establish separate legal entities for the pigments business and will assess all possible options for separate entities within new business unit, including eliminating overcapacity.

The new GBU “a global business unit” will likely be headquartered at Ludwigshafen area.

Danone SA fell 0.7% to €61.69 after the France-based dairy products maker reported revenues in the first-half ending in June jumped 4.6% to €11.39 billion from €10.47 billion in a year ago period.

Net profit in the period tumbled 31.6% from a year ago to €416 million compared to €608 million but diluted earnings per share decreased to €0.69 from €1.03.

Separately, the food supplier signed a ""preliminary agreement"" to sell its flagship Dumex infant formula unit in China to China-based Yashili International Holdings Ltd and raise 9.9% stake in dairy giant China Mengniu Dairy Co Ltd, Yashili''s indirect parent company.

Ladbrokes Plc dropped 3.3% to 124.10 pence after the betting and gaming company and private equity owner Gala Coral Group Limited agreed to merge to create £2.3 billion or $3.4 billion business and compete in the emerging online market.

Bookmakers hold stake of 51.75% and Gala will holds remaining of 48.25% stake in the new formed entity. Under the agreement, Coral Group will delivered with net debt of £865 million.

SES SA plunged 7.8% to €28.71 after the Luxembourg-based satellite communications and broadcasting services provider said revenues in the first-half ending in June climbed 6.4% to €999.1 million from €938.9 million in a year ago period.

Net profit in the period slumped 5.4% from a year ago to €275.4 million compared to €290.9 million and earnings per share slipped to €2.66 from €2.96.

Vodafone Group Plc jumped 3.5% to 240 pence after the U.K.-based mobile company reported group revenues in the first-quarter ending in June fell 0.9% to £10.11 billion form a year ago period.

Revenue in Europe slumped 3.9% to £6.50 billion while revenues in Africa, Middle East and Asia Pacific region climbed 5.5% to £3.36 billion.

Vodafone added service revenue in the quarter dropped 2.9% to £9.17 billion.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc