Europe Movers: Aberdeen, Ageas, Balfour, Rentokil, Volkswagen

Nigel Thomas
29 Apr, 2013
New York City

Aberdeen profit in the first-half surged 52%. Balfour lowered full-year outlook. Lloyds sell its Spanish retail banking to Banco Sabadell. Volkswagen first-quarter profit tumbled 35%.

[R]3:00 PM Frankfurt – Aberdeen profit in the first-half surged 52%. Balfour lowered full-year outlook. Lloyds sell its Spanish retail banking to Banco Sabadell. Volkswagen first-quarter profit tumbled 35%.[/R]

In London trading, FTSE 100 index rose 0.2% or 12.2 to 6,439 and in Frankfurt the DAX index gained 0.4% or 33.43 to 7,848.

In Paris, CAC 40 index increased 1% or 39.9 to 3,850.

Aberdeen Asset Management Plc soared 9.2% to 455.47 pence after the UK based asset manager reported revenue in the first-half climbed 25% to £516 million. Profit for the first-half surged 52% to £182.7 million compared to £100.8 million and diluted earnings per share rose by 43% to 12.43 pence from 7.95 pence.

The company added underlying pre-tax profit surged 37% to £223 million and gross new business generated for the period totaled £24.6 billion from £18.2 billion. Assets under management increased 13% to £213 billion.

Ageas SA surged 5.2% to €27.85 after the Belgium based insurance company agreed to sale of Royal Park Investments’ asset portfolio in an estimated cash flow of €1.04 billion and sale of the call option on the BNP Paribas shares for a total consideration of €144 million represented €0.64 per share.

In September, the board of directors will propose in a general meeting to pay €1 per share to shareholders.

Balfour Beatty Plc plunged 11.7% to 217.50 pence after the UK based construction company expects to reduce full-year profit from operations in the UK construction business will be less than the earlier projection by £50 million.

The Balfour said trading in rail operations in Germany is as per expectations with reduction of £10 million profit and the weakness in professional services in Australia.

Lloyds Banking Group Plc gained 1.2% to 53.54 pence after the UK based financial service provider agreed to sell its Spanish retail banking operations, including Lloyds Bank International S.A.U and Lloyds Investment España SGIIC S.A.U, to Banco Sabadell, S.A

The sale comprises the group’s retail and private banking business and the local investment management business in Spain.

The bank said total consideration will be payable in a shares and cash and the sale of the business expected to lead a loss on disposal of nearly £250 million and cash proceeds of the sale will be used for general corporate purposes.

Rentokil Initial Plc jumped 4.1% to 100.60 pence after the UK based holding company today sold the entire share capital of City Link Limited to Better Capital Fund LP, a private equity investor for £1.

The company added there are no outstanding conditions required so the sale is effective immediately. In 2011, City Link had reduced adjusted operating losses from £31 million to £26 million in 2012.

Swedish Match AB climbed 5.4% to 219.10 kroner after the Sweden based tobacco producer reported sales for the first quarter increased by 2% to 2.98 billion kroner from last year. Profit for the quarter soared 10.9% to 741 million kroner. Diluted earnings per share declined 11% to 2.91 kroner from 3.24 kroner.

Operating profit for the first quarter from product declined 8% to 832 kroner but Operating profit jumped 6% to 1,031 kroner.

Volkswagen AG gained 2.4% to €145.65 after the Germany based automobile company revenue in the first quarter slipped 1.6% to €46.6 billion from €47.3 billion. Profit for the quarter tumbled 35.2% to €2.03 billion compared to €3.13 billion. Diluted earnings per share plunged €4.18 from €6.70.

In the first quarter, Porsche sold 36,000 units and generated operating profit of €573 million. ŠKODA’s sales declined 13.3% and commercial vehicles operating profit dropped to €60 million from €124 million a year ago.