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Market Update

Europe Earnings: adidas Net Jumps 7%, BNP Paribas Net Plunges 45%

Author: Nigel Thomas
Last Update: 10:22 AM ET May 03 2013

3:00 PM Frankfurt – adidas first quarter net climbed 7% to €308 million and BNP Paribas first quarter net plunged 45% to €1.58 billion. Vallourec quarterly climbed 21%. Royal Bank of Scotland first quarter net swung to £393 million profit.

In London trading, FTSE 100 index jumped 1.2% or 77.4 to 6,538 and in Frankfurt the DAX index climbed 2% or 26 to 8,119.

In Paris, CAC 40 index advanced 1.4% or 53.4 to 3,912.

adidas AG soared 6.9% to €84.98 after the Germany based sports goods maker said group revenues in the first-quarter ending in March fell 2% to €3.75 billion from € 3.82 billion. Net income for the quarter climbed 6.6% to €308 million compared to € 289 million. Diluted earnings per share increased 6% to €1.47 from €1.38.

Wholesale revenues in the quarter dropped 5% to €2.48 billion and retail sales grew 4% to €722 million. Sales in other businesses climbed 6% to €548 million.

Herbert Hainer chief executive officer said, “The strong first quarter results confirm our expectations to deliver another year of double-digit earnings growth.”

For the year, adidas expects sales to increase at a mid-single-digit and gross margin to increase between 48% and 48.5%.

BNP Paribas SA gained 1.7% to €43.56 after the largest French bank reported revenues in the first-quarter ending in March jumped 1.7% to €10.06 billion. Net income for the quarter plunged 44.8% to €1.58 billion compared to €2.87 billion.

Pre-tax income for the group declined 33.6% to €2.62 billion

The bank said operating division revenues in the quarter dropped 6% and retail banking rose 0.2% and investment solutions revenue grew 3.4%.

The group''s solvency as measured by the standard set by Basel 2.5 common equity Tier 1 ratio at 11.7% and a fully loaded Basel 3 common equity Tier 1 ratio at 10%.

Personal finance’s outstanding loans dropped 2.4% to €87.5 billion from a year ago and consumer loan outstanding slid by 0.1%. Mortgage loan outstanding declined by 5.3%.

Vallourec SA surged 12.5% to €40.49 after the France based steel pipe maker said sales in the first-quarter ending in March rose 1% to €1.21 billion. Net income for the quarter climbed 20.7% to €35 million compared to €29 million. Earnings per share rose to €0.28 compared to €0.24 a year earlier.

Operating income climbed 13% to €90 million.

Vallourec added sales in the power generation for the quarter fell 1% to €136 million and petrochemicals sales declined 11% to €76 million. Non-Energy sales plunged 16% to €233 million.

The Royal Bank of Scotland Group plc declined 5.1% to 291.75 pence after the UK based financial service provider stated net interest income in the first quarter ending March declined 8.6% to £2.67 billion. In the quarter net swung to £393 million profit compared to loss of £1.55 billion. Diluted earnings for the quarter swung to 3.5 pence from loss of 14.2 pence.

Group operating profit jumped £829 million from £553 million in last quarter and pre-tax profit was £826 million.

Core Tier 1 ratio increases 50 basis points to 10.8%, or 8.2% on a fully loaded Basel III basis.

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