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Market Update

Europe Earnings: FirstGroup, Impregilo, Marks and Spencer, Ryanair


Author: Nigel Thomas
ticker.com
Last Update: 10:33 AM ET May 20 2013

3:00 PM Frankfurt – FirstGroup declined on the rights issues plan and annual net plunged 78%. Impregilo secured Doha metro rail contract for €1.7 billion. Marks and Spencer expects lowest annual profit in four years. ENRC rejected offer of Kazakhstan consortium. Ryanair profit for the year surged 13%.

In London trading, FTSE 100 index rose 0.1% or 5.8 to 6,729 and in Frankfurt the DAX index gained 0.3% or 24.6 to 8,423.

In Paris, CAC 40 index gained 1.1 to 4,002.

FirstGroup Plc tumbled 21.5% to 175.60 pence after the UK based bus and train operator announces a fully underwritten rights issue 3-for-2. The company plans to issue 722,859,586 new ordinary shares to raise £615 million to cut debts of £2 billion and ""remove the risk of a credit rating downgrade.""

The issue price is 85 pence per share, a discount of 62% to the Friday’s close.

The transporter separately reported revenue for the year ending in March grew 3.3% to £6.90 billion. Profit for the year plunged 78.3% to £47.8 million compared to £220.3 million and diluted earnings per share dropped 7.2 pence from 42.5 pence a year earlier.

Impregilo SpA surged 15.1% to €3.42 after the Italy based construction company secured contract from Qatar Railways Company to design and build Red Line North metro in Doha of Qatar for €1.7 billion.

Marks and Spencer Group Plc slipped 1.6% to 443.80 pence after the UK based retailer expects lowest annual profit in four years on May 21.

Eurasian Natural Resources Corporation Plc dropped 2.8% to 263.98 pence after the UK based diversified company’s independent board rejected the offer by Kazakhstan based consortium of buyers of the cash and shares offer “as it materially undervalues the business of the ENRC.”

The consortium offered $1.6 billion in cash and 0.231 shares of the Kazakhmys Plc for each ENRC share.

Ryanair Holdings Plc soared 8.3% to €6.86 after the Ireland based low-cost airline operator said revenue in the year ending in March climbed 13% to €4.88 billion. Profit for the year surged 13% to €569.3 million compared to €560.4 million and diluted earnings per share rose to 39.33 cents from 37.94 cents.

Traffic in the year jumped 5% to 79.3 million passengers with started of 217 new routes that reached above 1,600 routes. Recently the airline ordered 175 Boeing 737-800 aircraft.

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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