Europe Movers: ARM Holdings, ASDA, Richemont, STMicroelectronics

Nigel Thomas
23 Apr, 2013
New York City

ARM Holdings first quarter profit surged 39% and Associated British Foods profit for the period soared 27% to

[R]3:00 PM Frankfurt – ARM Holdings first quarter profit surged 39% and Associated British Foods profit for the period soared 27% to £309 million. Richemont estimated sales for the year to climbed 14 % and net profit to jump 30%. STMicroelectronics net loss widened.[/R]

In London trading, FTSE 100 index climbed 1.7% or 104.6 to 6,385 and in Frankfurt the DAX index jumped 2% or 146.7 to 7,625.

In Paris, CAC 40 index advanced 2.7% or 99.9 to 3,752.

ARM Holdings Plc surged 11.3% to 967.50 pence after the UK based technology and software group reported revenue in the first quarter ending in March soared 28% to £170.3 million. Profit for the quarter surged 38.8% to £51.9 million compared to £37.4 million. Diluted earnings per share jumped 3.7 pence from 2.7 pence.

The company added gross profit for the quarter climbed 28.5% to £160.1 million and profit before tax jumped 44% to £89.4 million.

Associated British Foods Plc climbed 6.3% to 1,967 pence after the UK based food group said revenues in the 24-weeks period ended on March 2 jumped 10% to £6.33 billion. Profit for the period soared 26.6% to £309 million compared to £244 million and diluted earnings per ordinary share rose 38.9 pence from 31.7 pence.

The retailer said operating profit for the period climbed 21% to £489 million and profit before tax up 26% at £415 million compared to last year.

ASDA Group Limited, the UK based food retailer said it plan to starts for same-day grocery delivery system from the next month and will invest £700 million. ASDA estimated the project will create 2,500 jobs.

Richemont SA jumped 5.5% to Sfr71.82 the Switzerland based luxury goods maker reported sales for the year ended in March estimated to climbed 14 % on a reported basis and operating profit for the year expected to increase nearly 18 % from a year ago.

In a statement, the company reported net profit for the year is likely to jump by 30% compared to last year.

STMicroelectronics NV climbed 6.8% to €5.99 after the Switzerland based semiconductor maker reported net revenues in the first quarter were flat at $2.01 billion. Net loss in the quarter widened to $171 million compared to $176 million and diluted earnings per share in the quarter slid 19 cents from 20 cents.

The company added gross margin for the quarter was 31.3% and net loss attributable to shareholders was mainly due to the loss in a joint venture with Ericsson and restructuring costs.