Europe Earnings: Julius Baer, Lloyds, Ryanair, Rexam, Smith & Nephew

Nigel Thomas
03 Feb, 2014
New York City

Julius Baer profit tumbled 30% to 188 million francs but assets under management soared 34%. Ryanair said net in the quarter swung to a loss. Rexam plans to sell its pharmaceutical unit to Montagu for $805 million. Smith & Nephew agreed to buy ArthroCare for $1.7 billion in cash.

[R]3:40 PM Frankfurt – Julius Baer profit tumbled 30% to 188 million francs but assets under management soared 34%. Ryanair said net in the quarter swung to a loss. Rexam plans to sell its pharmaceutical unit to Montagu for $805 million. Smith & Nephew agreed to buy ArthroCare for $1.7 billion in cash.[/R]

In London trading, FTSE 100 index slid 0.2% or 13.67 to 6,496.77 and in Frankfurt the DAX index dropped 0.9% or 83.91 to 9,222.57.

In Paris, CAC 40 index slipped 0.8% or 35.42 to 4,130.30.

Julius Baer Gruppe AG declined 5.4% to 41.68 francs after the Switzerland-based private banking group said assets under management soared 34% to 254 billion francs and operating income rose by 26% to 2.20 million francs.

Net interest and dividend income for the year slid 552.1 million francs from 558.5 million francs a year ago period.

Net profit tumbled 30.1% to 187.8 million francs compared to 268.5 million francs and diluted earnings per share declined 34.7% to 0.86 francs from 1.32 francs a year earlier.

Lloyds Banking Group Plc dropped 3.7% to 80.27 pence after the U.K.-based bank said it will increase provisional reserves £1.8 billion or $3 billion to repay customers for selling payment-protection insurance.

Ryanair Holdings Plc surged 7.7% to €6.80 after the Ireland-based low-cost airliner reported revenue in the third-quarter ending in December was nearly flat at €964 million from €969 million a year ago.

Net in the quarter swung to a loss €35.2 million compared to a profit of €18.1 million and diluted loss per share swung to a €2.50 from a profit of €1.25 a year ago period.

Rexam Plc increased 1.6% to 501 pence after the U.K.-based consumer packaging company plans to sale of the pharmaceutical devices and retail packaging divisions to Montagu Pvt Equity for $805 million in cash.

Smith & Nephew Plc gained 1.6% to 889.65 pence after the U.K.-based medical devices maker agreed to buy the U.S.-based medical devices company ArthroCare Corp for $1.7 billion in cash and an enterprise value of $1.5 billion to strengthen the sports medicine business.

Smith & Nephew will pay $48.25 per ArthroCare share in cash, a premium of 20%.