Europe Earnings: Glaxo Net Drops 12%, Orange Revenues Fall 4%

Nigel Thomas
23 Oct, 2013
New York City

GlaxoSmithKline profit plunged 12% to

[R]4:25 PM Frankfurt – GlaxoSmithKline profit plunged 12% to £969 million after total sales were flat and China sales plummeted 61%. Heineken profit declined 15% to €483 million. Orange, France based telecom carrier said revenue fell 4% to €10 billion.[/R]

In London trading, FTSE 100 index slipped 0.5% or 33.17 to 6,662 and in Frankfurt the DAX index fell 0.4% or 34.83 to 8,913.

In Paris, CAC 40 index dropped 1% or 41.70 to 4,254.

De La Rue Plc plunged 9.7% to 886.30 pence after the U.K.-based security documents designer said group operating profits soar 18% to £39 million on marginally lower revenues and order book at September 28 increased by £25 million in the year to £232 million.

GlaxoSmithKline Plc slipped 1.9 to 1,571 pence after the U.K.-based health care company reported pharmaceutical and vaccine sales in the third quarter in China plummeted 61% after high-profile Chinese-government minister alleged the bribed doctors and others to sell more drugs.

Total revenue in the quarter ending in September was flat at £6.51 billion from £6.53 billion a year earlier.

Net profit in the quarter plunged 12% to £969 million compared to £1.11 billion and diluted earnings per share slipped 19.7 pence from 22.2 pence a year ago period.

The company said operating profit for the quarter rose 1% to £1.57 billion. The company added U.S. sales grew 2% and Europe sales gained 5%. Sales from Japan increased 2% and sales from consumer healthcare segment jumped 4%.

Glaxo estimated earnings per share growth for the year between 3% and 4% and sales to increase about 1%.

Heineken NV dropped 4.8% to €50.25 pence after the Netherland-based beer maker said group revenue in the third-quarter rose 1% to $5.69 billion from $5.17 billion a year ago.

Net profit in the quarter declined 15% to €483 million compared to €568 million a year earlier.

Orange SA declined 5.1% to €10.10 pence after the France-based independent telecom carrier said consolidated revenue in the third-quarter ending in September dropped 4% to €10.16 billion from €10.59 billion. Earnings before interest, taxes, depreciation and amortization slumped 7% to €3.37 billion.

Orange EE revenue in the third-quarter slipped 2.4% to £1.63 billion from £1.67 billion and mobile service revenue dropped 3.3% to £1.45 billion from £1.50 billion a year ago period and its 4G customers rose to 493,000.

STMicroelectronics N.V. plunged 8.3% to €5.83 after the Switzerland-based chip maker reported net revenues in the third-quarter slumped 7.1% to $2.01 billion from $2.17 billion a year ago. Net loss in the quarter narrowed to $142 million or 16 cents per share compared to $478 million or 54 cents per share for the year-ago quarter.