Europe Earnings: Deutsche Bank, Kingfisher, Rio Tinto, Thomas Cook, Wolseley

Nigel Thomas
28 Nov, 2013
New York City

Deutsche Bank is in talks with Permira Advisers to sell Tilney Investment. Kingfisher sales jumped 8%. Rio Tinto plan to invest $3 billion to increase production capacity. Thomas Cook said loss narrowed as EBIT soared 49%. Wolseley trading profit climbed 9%.

[R]3:40 PM Frankfurt – Deutsche Bank is in talks with Permira Advisers to sell Tilney Investment. Kingfisher sales jumped 8%. Rio Tinto plan to invest $3 billion to increase production capacity. Thomas Cook said loss narrowed as EBIT soared 49%. Wolseley trading profit climbed 9%.[/R]

In London trading, FTSE 100 index gained 0.1% or 9.42 to 6,659 and in Frankfurt the DAX index rose 0.4% or 38.25 to 9,389.

In Paris, CAC 40 index rose 0.2% or 8.23 to 4,301.

Deutsche Bank AG gained 1.5% to €35.16 after the Germany-based bank is in talks with private equity group Permira Advisers LLP to sell its U.K-based non-profit business Tilney Investment Management.

The lender yesterday sold its subsidiary Russian Capital Management to Aton Group the conglomerate and Helmig family investment company to optimize its operations in Eastern Europe. Aton will acquire 100% of Deutsche UFG Capital Management.

The deal creates the largest asset managers in Russia, with total assets under management of 118.4 billion rubles.

Kingfisher Plc plunged 5.1% to 375.90 pence after the U.K.-based hardware retailer reported sales in the third-quarter ending on November jumped 8% to £2.92 billion and retail profit climbed 5.8% to £271 million a year ago.

Rio Tinto Plc climbed 3.5% to 3,248 pence after the U.K.-based miner said it plans to invest lower than estimated $3 billion and increased its annual iron-ore output in Australia by around 25%.

Thomas Cook Group Plc surged 14.3% to 175 pence after the U.K.-based travel operator reported revenue in the year ending in September rose 1.3% to £9.32 billion from £9.20 billion a year ago.

Loss for the year narrowed to £207 million compared to £590 million and loss per share dropped to 16.7 pence from 67.2 pence a year earlier.

The tour operator said underlying earnings before-interest-and-taxes for the year soared 49% to £263 million and net debt as on September 30 declined to £421 million compared to £788 million a year ago.

Thomas Cook added it has 309 exclusive hotels for its tour bookings in total including concept hotels and plans to increase the number of these exclusive hotels to 800 by fiscal 2017.

The tour operator expects to increase the number of city hotels from current level of 7,000 to 20,000 by fiscal 2015.

Wolseley Plc slipped 1.4% to 3,346 pence after the U.K.-based plumbing and heating products distributor said revenue in the first-quarter ending in October soared 7.4% to £3.53 billion from £3.30 billion a year ago.

Trading profit in the quarter climbed 9% to £218 million compared to £200 million and loss per share dropped to 16.7 pence from 67.2 pence a year earlier.