Europe Movers: Alfa Laval, ARM, BP, KPN, Munich Re, Tele2

Barry Randall
05 Feb, 2013
New York City

BP Plc reported quarterly earnings that exceeded estimates but also cited lower production in 2013 on divestment and issued 9 cents a share quarterly dividend. ARM Holdings gained after the chip maker reported 19% increase in sales. KPN plunged 22% after it plans to ask shareholders $4 billion.

Alfa Laval AB soared 5% to SK143.50 after the heat exchange maker reported fourth quarter profit declined less than expected to SK895 million from SK928 million a year ago.

ARM Holdings Plc gained 3% to 920 pence after the maker of chips for Apple phones and tablets said fourth quarter revenues increased 19% to 164.2 million pounds.

BP Plc increased 1.5% to 469 pence after the second largest oil explorer reported earnings adjusted for one-time items and inventories of $4 billion beating the estimates of at least $3.5 billion. Profit in the year ago period was $5 billion.

Production in the fourth quarter declined 7% to 2.29 barrels of oil equivalent from a year ago quarter, that excluded its Russian venture.

Refining division reported a record profit and for the full-year “underlying replacement profit” was $17.6 billion compared to $21.7 billion in 2011.

BP said its net debt declined to $27.5 billion from $31.5 billion a year ago and declared quarterly dividend of 9 cents a share.

BP also noted in its press release that it will take additional $4.1 billion charge in the quarter to settle various claims arising from the Gulf of Mexico oil spill and total cumulative net charge at the end of 2012 was $42.2 billion.

KPN plunged 22% to 3.20 euros after the largest telecom company in the Netherlands reported a net loss of 162 million euros. The company also said it plans to raise $4 billion capital from shareholders to lower its debt.

Munich Re gained more than 2% to 137.10 euros after the reinsurance company reported preliminary net income of 480 million euros beating the expectations of 449 million euros compared to net income of 627 million euros a year ago period.

The company also increased its dividend for 2012 to 7 euros a share from 6.25 euros a share a year ago.

Tele2 AB dropped 11% to SK102 after the telecom company based in Sweden reported fourth quarter net income of SK565 million missing the estimate by a wide margin. Chief Executive Officer Mats Granryds said Russian business which accounts for 30% of total revenues may weaken in the year.

Virgin Media soared 19% to 2,922 pence on the speculation that the company held talks with Liberty Media controlled by billionaire John Malone. Media reports speculated that Malone is likely to make a bid for the company.