Europe Earnings: Bouygues, BMW, Deutsche Lufthansa, Wm Morrison

Nigel Thomas
13 Mar, 2014
New York City

Bouygues raised its bid for Vivendi''s telecom unit SFR to

[R]4:00 PM Frankfurt – Bouygues raised its bid for Vivendi''s telecom unit SFR to €11.3 billion. BMW profit climbed 10% to €1.3 billion. Deutsche Lufthansa net tumbled 75% to €313 million and the airline amended its depreciation policy. Wm Morrison plunged after reported net loss of £176 million.[/R]

In London trading, FTSE 100 index slid 0.2% or 10.97 to 6,609.93 and in Frankfurt the DAX index gained 0.04% or 3.26 to 9,191.95.

In Paris, CAC 40 index edged up 0.01% or 0.57 to 4,306.83.

Bouygues SA slid 0.3% to €31.94 after the France-based telecommunications and media group raised its bid for Vivendi SA''s telecom unit SFR to €11.3 billion or $15.8 billion.

Vivendi''s board will meet tomorrow to review the bid.

Bayerische Motoren Werke AG jumped 2.7% to €82.43 after the Germany-based automobile company reported group revenue in the fourth-quarter ending in December dropped 1.6% to €20.21 billion from €20.53 billion a year ago period.

Profit in the quarter climbed 9.5% to €1.31 billion compared to €1.19 billion a year earlier.

BMW added the total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers in the quarter ending in December increased 3.5% to 527,620 units from 509,684 units a year ago.

Deutsche Lufthansa AG soared 6.2% to €19.02 after the Germany-based aviation company said total revenue in the year ending in December slid 0.4% to €30.03 billion from €30.13 billion a year ago period.

Net profit for the year tumbled 74.5% to €313 million compared to €1.23 billion and earnings per share fell 2% to €0.68 from €2.68 a year earlier

Traffic revenue dropped 0.9% to €24.57 billion and operating income declined 16.9% to €697 million.

The group amended its depreciation policy effect on the operating result from 2014 onwards.

The airline company expects adjusted operating result between €1.7 billion and €1.9 billion, an increase of 40% for 2014.

Wm Morrison Supermarkets Plc tumbled 9.6% to 210.40 pence after the U.K.-based food retailer in its preliminary result said turnover fell 2% to £17.7 billion from £18.1 billion a year ago. Comparable sales in the year dropped 2.8%.

Net loss in the year was £176 million and underlying profit-before-tax declined 13% to £785 million.

The retailer plans for major restructuring of the business and expected profit in the next fiscal year to decline 50% to £375 million.

Morrisons said it plans to reduce its cost base and invest £1 billion over the next three years. Net debt in the year jumped to a £2.82 billion compared to £2.18 billion a year ago.

The company took one-time £903 million exceptional write-down due to property and IT costs and weak performance from its baby products business.