Europe Earnings: Alstom, Exillon, JD Sports, Inditex, Redrow, Smiths Group

Nigel Thomas
18 Sep, 2013
New York City

Alstom cuts forecast and secured contract worth

[R]4:00 PM Frankfurt – Alstom cuts forecast and secured contract worth €170 million in Saudi Arabia. Exillon surged on takeover offer. JD Sports profit doubled and revenues barely rose 2% in the first-half. Inditex net rose 1% to €951 million as sales jumped to €7.7 billion.[/R]

In London trading, FTSE 100 index slid 0.05% or 3.08 to 6,567 and in Frankfurt the DAX index rose 0.3% or 24.09 to 8,621.

In Paris, CAC 40 index gained 0.4% or 14.94 to 4,160.

Alstom SA dropped 1.9% to €26.89 after the France-based trains and power equipment maker anticipated growth weaker than expected growth 12 to 18 months ago and plans to cut costs.

In May, the company lowered its target for sales growth and its operating margin for the fiscal 2014.

In a separate note, Alstom said it secured another contract worth €170 million in Saudi Arabia to supply Hyundai Heavy Industries 4 x 720 MW steam turbine generator sets for the Shuqaiq project.

Exillon Energy Plc surged 25.1% to 195.16 after the UK based independent oil producer said it receives takeover offers from Maksat Arip and oil producer also received additional preliminary and conditional approaches for acquisition.

The company board unanimously decided to conduct strategic review of the options available including the sale “but assets remain materially undervalued by the market.” the Chairman David Herbert said.

JD Sports Fashion Plc gained 1% to 1,035 pence after the UK based sport and athletic apparel and accessory retailer reported revenue in the first-half ending on August 3 grew 2% to £567.4 million from £556 million a year ago period.

Profit for the year more than doubled to £4.5 million compared to £2.1 million and diluted earnings per share jumped 10.19 pence from 2.74 pence a year earlier.

Inditex SA, the Spain-based textile company reported net sales in the first-half ending in July jumped 6% to €7.7 billion from €7.2 billion a year earlier. Net profit for the period rose 1% to €951 million compared to €944 million a year ago.

Gross profit for the period increased to €4.5 billion from €4.3 billion a year ago period.

The group created 10,111 new jobs during the period of professionals employed across all five continents to 122,579.

Redrow Plc climbed 3.6% to 239 pence after the UK based real estate developer said revenue in the year ending in June jumped 26% to £604.8 million from £478.9 million a year ago period.

Profit for the year soared 77.8% to £53.7 million compared to £30.2 million and diluted earnings per share advanced 14.7 pence from 9.7 pence a year earlier.

The company added profit-before-tax for the year climbed 63% to £70 million to £43 million. Gross margin jumped to 18.8% from 17.3% a year ago and value of private reservations surged 42% from £472 million to £668 million.

Smiths Group Plc jumped 2.8% to 1,415 pence after the UK based technology company reported revenue in the year ending in July rose 2% to £3.11 billion from £3.04 billion a year ago period.

Profit for the year surged 38.7% to £358.2 million compared to £258.2 million and diluted earnings per share soared 89.7 pence from 64.9 pence a year earlier.

Operating profit for the year grew 1% to £560 million compared to £554 million a year ago.