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Market Update

Reckitt Benckiser and McCormick in $4 B Deal, Electrolux Net Soars


Author: Sarla Buch
ticker.com
Last Update: 11:06 AM ET July 19 2017

4:00 PM Frankfurt Drax said net swung to loss and the electric utility plans to increase natural gas as fuel. Electrolux profit surged after strong demand in North America. Reckitt Benckiser agreed to sells its food business to McCormick for $4.2 billion. RPC lifted revenues forecast. Sweden-based Tele2 said revenues surged.

In London trading, FTSE 100 index increased 33.10 or 0.5% to 7,423.07 and in Frankfurt the DAX index edged up 8.43 to 12,438.47.

In Paris, CAC 40 index gained 23.18 or 0.5% to 5,196.94.

Drax Group Plc declined 4.1% to 330.25 pence after the U.K.-based electricity producer said revenues in the first-half ending in June soared 20% from a year ago to 1.8 billion.

Net in the period swung to a loss from a year ago to 68.4 million from profit of 148.7 million and diluted loss per share swung to 16.7 pence form diluted earnings per share of 36.3 pence.

The fossil fuel electric utilities provider said as of June 30, net debt surged to 372 million from 83 million in the period ending in December and cash on hand was 197 million.

Electrolux AB advanced 4.2% to 307.70 Swedish kronor after the Sweden-based household appliances maker reported net sales in the second-quarter ending in June jumped 5.1% from a year ago to 31.5 billion kronor.

Net income in the quarter surged 21.3% from a year ago to 1.3 billion kronor from 1.1 billion kronor and diluted earnings per share increased to 4.52 kronor from 3.75 kronor.

Electrolux said operating income in the quarter increased 25% to 1.94 billion kronor and operating income in North America soared 33% despite continued price pressure and lower sales volumes while operating income in Latin America declined 58%.

Reckitt Benckiser Group Plc gained 1.4% to 7,922 pence after the U.K.-based consumer goods conglomerate agreed to sell its food business, including French''s Mustard and other brands to the U.S.-based spice maker McCormick & Company Inc for $4.2 billion on a cash-free, debt-free basis.

The transaction is expected to close in the third-quarter of 2017.

RPC Group Plc jumped 5.7% to 875 pence after the U.K.-based plastic packaging products maker plans to buy back up to 100 million shares in the current financial year and estimated revenues in the first-quarter ending in June at 960 million, ahead of a year ago period.

Tele2 AB soared 5.2% to 100.10 Swedish kronor after the Sweden-based telecom operator reported net sales in the first-half ending in June surged 21% from a year ago to 15.9 billion kronor.

Net income in the period jumped 143% from a year ago to 679 million kronor from 279 million kronor and diluted earnings per share increased to 1.47 kronor from 0.88 kronor.

The telecom operator lifted operating profit forecast in the range of 6.2 billion kronor to 6.5 billion kronor from the earlier estimated range of 5.9 billion kronor to 6.5 billion kronor.

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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