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Market Update

French Retailer Casino Sells Stores, Ryanair Faces Rising Cost Pressures


Author: Sarla Buch
ticker.com
Last Update: 11:28 AM EDT October 01 2018

4:00 PM Frankfurt Switzerland-based Aryzta said it plans to raise 800 million. Casino Guichard agreed to sell 19 stores. Kaufman Broad reported strong third-quarter results. Ryanair tumbled on rising costs and weak passenger traffic.

In London trading, FTSE 100 index decreased 15.11 or 0.2% to 7,495.33 and in Frankfurt the DAX index increased 99.32 or 0.8% to 12,346.05.

In Paris, CAC 40 index gained 18.65 or 0.3% to 5,512.35.

Aryzta AG surged 24.7% to 11.65 Swiss francs after Switzerland-based dairy products maker said revenues in the year ending in July declined 9.5% from a year ago to 3.4 billion.

Net loss in the year narrowed to 470 million from 906.1 million in the same period a year ago and diluted loss per share decreased to 0.56 from 1.06.

Aryzta said revenues in Europe dropped 1.6% to 1.7 billion and revenues in North America plunged 18.4% to 1.5 billion. The dairy products maker said lower-than-expected results was driven by weakening butter pricing, Brexit and in-sourcing in Europe and labor and distribution inflation in the U.S.

The specialty baking products maker said it is planning to sell new shares of as much as 800 million or $929 million to reduce the debt.

Aryzta forecasted fiscal 2019 operating profit growth in mid- to high-single-digit and operating margins in medium-term range of 12% to 14%.

Casino Guichard Perrachon SA gained 0.6% to 36.45 after France-based supermarkets operator agreed to sell 19 property assets in Paris region for 565 million, including the disposal of 15% of Mercialys through TRS.

Kaufman & Broad SA soared 5.1% to 42.46 after France-based home builder said revenues in the nine-month period ending in August jumped 15.7% from a year ago to 1.1 billion.

Net profit in the period surged 55.9% to 51.8 million from 33.2 million in a year ago period and diluted earnings per share increased to 2.37 from 1.59.

As of August 31, total orders received increased 5.7% to 1.2 billion and number of orders for homes edged up 1.7% to 5,981 units.

The homebuilder forecasted fiscal 2018 revenue growth to above 10% and gross margin to remain at about 19% while operating profit to increase to about 9%.

Ryanair Holdings Plc tumbled 11.9% to 11.54 after the Ireland-based low-cost airline operator lowered fiscal 2019 profit forecast to about 12% to between 1.10 billion and 1.20 billion from the earlier estimate of 1.25 billion and 1.35 billion.

The airline blamed the lower forecast on lower passenger traffic, higher oil prices and recent strikes.

Ryanair said fares in the second-quarter eased almost 3% and the airline forecasted second-half fares to decline 2% and fuel bill of 460 million.

The airline plans to trim its winter capacity by 1% after low fare, higher oil price and higher environment cost related to new regulation.

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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