Europe Earnings: Alstom, Babcock, Daily Mail, H & M, United Internet

Nigel Thomas
27 Mar, 2014
New York City

Alstom plunged 6% on the rising probabilities of charges from the U.S. Babcock Intl agreed to acquire Avincis for

[R]4:00 PM Frankfurt – Alstom plunged 6% on the rising probabilities of charges from the U.S. Babcock Intl agreed to acquire Avincis for £920 million. Daily Mail dropped after it lowered fiscal outlook. H&M profit climbed 8% to 2.7 billion kronor. United Internet sales jumped 11%.[/R]

In London trading, FTSE 100 index dropped 0.5% or 37.37 to 6,567.93 and in Frankfurt the DAX index slid 0.2% or 15.85 to 9,432.73.

In Paris, CAC 40 index fell 0.3% or 11.78 to 4,373.37.

Alstom SA plunged 5.5% to €19.12 after the France-based transport and energy infrastructure provider said the company is likely to face U.S. anticorruption enforcement actions from the Department of Justice in the U.S.

Babcock International Group Plc declined 5.9% to 1,286 pence after the U.K.-based engineering and construction conglomerate agreed to acquire private equity-owned Avincis for £920 million or $1.52 billion from to expand its helicopter services.

The company will launch fully underwritten rights issue to raise £1.1 billion.

Daily Mail & General Trust Plc plummeted 5.2% to 914 pence after the U.K.-based publishing company lowered its revenue and profit outlook for the year ending in March.

The company said underlying revenue increased 6% and revenue to climbed 10% in business-to-business business segment while revenues from risk management solutions segment increased 7%. Operating profit is expected to be between £45 million and £50 million and the company will be profitable in 2016.

H&M Hennes & Mauritz AB dropped 3.9% to 278.50 kronor after the Sweden-based apparel retailer reported net sales in the first-quarter ending in February soared 13.3% to 37.5 billion kronor from 33.1 billion kronor a year ago.

Profit in the quarter climbed 7.7% to 2.65 billion kronor compared to 2.46 billion kronor and earnings per share jumped to 1.60 kronor from 1.49 kronor a year earlier.

The company added gross profit in the quarter surged 13% to 17.64 billion kronor and operating profit rose by 9% to 3.4 billion kronor from a year ago period.

United Internet AG climbed 4% to €33.47 after the Germany-based Internet service provider said sales in the year ending in December surged 10.8% to €2.66 billion from €2.40 billion a year earlier.

Earnings before interest, taxes, depreciation and amortization in the year jumped 24.9% to €407.2 million compared to €325.9 million and earnings per share increased to €1.07 from €0.71 a year ago.