Europe Earnings: Colruyt, Direct Line, Legal & General, Stagecoach

Nigel Thomas
26 Jun, 2013
New York City

Colruyt revenue jumped 6% and profit for the year rose 3.1% to

[R]3:20 PM Frankfurt – Colruyt revenue jumped 6% and profit for the year rose 3.1% to €353.7 million. Direct Line cut 2,000 jobs as part of a plan to further reduce costs of £1 billion. Legal & General agreed to acquire the Lucida plc for £151 million. Stagecoach profit for the year declined to £158.8 million.[/R]

In London trading, FTSE 100 index gained 0.9% or 51.89 to 6,154 and in Frankfurt the DAX index jumped 1.5% or 116.58 to 7,928.

In Paris, CAC 40 index climbed 1.9% or 68.52 to 3,718.

Colruyt SA soared 7.7% to €39.86 the Belgium based food retailer said revenue for the year ending in March jumped 5.9% to €8.31 billion from €7.85 billion a year earlier. Profit for the year rose 3.1% to €353.7 million compared to €342.9 million and diluted earnings per share €2.26 from €2.18 a year ago.

The group''s gross profit for the year climbed 4.9% to €2.11 billion, from €2.01 billion. The retail segment represents 75.9% growth and wholesale and food service segment represents 16.6% increase of the consolidated revenue.

Operating profit for the year jumped 6.2% to €515.1 million and profit before tax increased 2.8% to €502.5 million.

Direct Line Insurance Group Plc climbed 4.8% to 229.50 pence after the UK based general insurer announced additional cost reduction initiatives targeted to nearly £1 billion for 2014 and eliminate about 2,000 jobs.

Legal & General Group Plc gained 2.5% to 169.70 pence after the UK based investment manager agreed to acquire the Lucida plc, the manager of annuity portfolio fund of £1.4 billion for an estimated cash consideration of £151 million. The transaction is expected to complete in third quarter of this year.

Stagecoach Group Plc jumped 3.7% to 310.50 pence after the UK based international public transport company reported revenue in the year ending in April climbed 8.1% to £2.80 billion from £2.59 billion. Profit for the year declined to £158.8 million compared to profit of £188.3 million and diluted earnings per share fell 27.2 pence from 29.1 pence a year earlier.

Total operating profit for the year plunged 10.4% to £235.4 million and profit before tax tumbled 18.3% to £195.8 million.