Europe Movers: Allianz Net Doubles, BAE Profit Falls

Nigel Thomas
21 Feb, 2013
New York City

Allianz SE net doubled to

[R]2:00 PM Frankfurt – Allianz SE net doubled to €5.2 billion and fourth quarter profit surged 148% to €1.22 billion. BAE Systems profit for the year plunged 14% and lowered outlook for 2013. Lufthansa AG revenue increased 5% to €30.1 billion.[/R]

In London trading, FTSE 100 index dropped 1.7% or 110.1 to 6,285 and in Frankfurt, the DAX index declined 1.8% or 140 to 7,589. In Paris, CAC 40 index slumped 1.8% or 68.1 to 3,642.

Allianz SE slipped 1.1% to €103.10 after Germany based financial services provider reported revenue for the year ending in December grew 3% to €106.4 billion compared to €103.6 billion in the same period of last year.

Net income in the fiscal year doubled to €5.2 billion from €2.5 billion from a year ago and diluted earnings per share surged to €11.34 compared to €5.48 from a year ago period.

For the fourth quarter, revenue rose 4% to €25.9 billion compared to €25 billion in the same period of last year.

Net income in the quarter surged 148% to €1.22 billion from €492 million from a year ago and diluted earnings per share surged to €2.66 compared to €1.06 from a year ago period.

Operating profit increased 21% to €9.5 billion and Allianz said all business segments delivered double-digit growth. Shareholders’ equity increased to €53.55 billion conglomerate solvency ratio increased 18 percentage points to 197%.

Gross written premiums in property and casualty insurance increased 4.75 to €46.9 billion and annual operating profit property and casualty insurance jumped 12.5% to €4.7 billion.

Life and Health insurance business showed stable and generating €52.3 billion.

The asset management business produced strongest performances and net fees and commission income soared 23.1% to €6.7 billion and operating profit climbed 33.6% to €3 billion.

The board is scheduled to propose a dividend of €4.50 per share.

The bank expected operating profit outlook for 2013 of €9.2 billion with a range of €500 million.

BAE Systems plc climbed 4.9% to 348.50 pence after the UK based aerospace and defense products maker initiating a three-year share repurchase program of up to £1 billion.

For the year ending in December sales dropped 7% to £17.83 billion from £19.15 billion a year earlier.

Profit for the year plunged 14% to £1.08 billion compared to £1.26 billion and diluted earnings per share declined 11% to £32.8 compared to €36.7 from a year ago period.

The company provided outlook for the first quarter of 2013 subject to uncertainties relating to US defense budget, electronic systems sales expected to be at a similar level of 2012 with margins expected to be slightly lower within a range of 12% to 14%.

Cyber & Intelligence sales are expected to be marginally lower than 2012 with margins expected to be within range of 8% to 9%.

Deutsche Lufthansa AG fell 0.6% to €14.90 after Germany based airline said revenue for the year ending in December increased 5% to €30.1 billion.

The aviation company added operating profit generated to €524 million. Group net profit in the 2012 jumped from minus €13 million in 2011 to €990 million.

In a separate press note, the company said executive board of Lufthansa approved the purchase of 108 new aircraft and eight for long-range.

By the end of 2025, the group expects to take delivery of 239 aircraft with an order volume of €23 billion, based on list prices.