Europe Movers: Debenhams, L'Oreal, Nestle, Rio Tinto, SABMiller

Nigel Thomas
15 Apr, 2014
New York City

Debenhams profit declined 23% to

[R]4:00 PM Frankfurt – Debenhams profit declined 23% to £69 million. L''Oreal sales in the quarter fell 2% to €5.6 billion. Nestle revenue declined 5% to 20.8 billion francs. Rio Tinto offered positive quarterly production outlook. SABMiller is considering to sell its stake in Tsogo Sun for $1.04 billion.[/R]

In London trading, FTSE 100 index dropped 0.6% or 40.58 to 6,543.18 and in Frankfurt the DAX index declined 1.2% or 114.26 to 9,224.91.

In Paris, CAC 40 index slumped 0.5% or 23.89 to 4,360.67.

Debenhams Plc surged 5.5% to 81.80 pence after the U.K.-based department stores operator reported group revenue in the first-half ending in March increased 1.7% to £1.27 billion from £1.25 billion a year ago.

Group profit in the period declined 23% to £68.7 million compared to £89.2 million and earnings per share dropped 21.1% to 5.6 pence from 7.1 pence a year ago.

L''Oreal SA gained 1.7% to €122.65 after the France-based cosmetic maker reported revenue in the first-quarter ending in March dropped 2.2% to €5.64 billion from €5.76 billion a year ago.

L''Oreal''s luxury products segment sales soared 7.2% on a comparable basis but fell from 8.4% recorded in the fourth quarter.

Nestle SA rose 0.7% to 67.40 francs after the Switzerland-based food and beverage maker reported sales in the first-quarter ending in March declined 5.1% to 20.82 billion francs from 21.94 billion francs a year ago.

The company said sales in Europe fell 0.8% but revenues from Asia, Oceania and Africa division climbed 5.3%. Confectionery sales in the first quarter dropped 0.5%.

Rio Tinto Plc declined 3.1% to 3,300.50 pence after the U.K.-based iron ore producer affirmed its annual output guidance. Iron ore output in the quarter declined 6% to 66.4 million metric tons but climbed 8% to 52.3 million metric tons from 48.3 million tons a quarter a year ago.

The company reported shipments in the first quarter dropped 8% compared to previous quarter mainly due to weather related interruptions at domestic Pilbara mines and in Canada.

Rio Tinto estimated iron ore production from the Pilbara mines to reach 290 million tons by the year-end in June. Copper output in the quarter slumped 6% to 156,000 tons due to lower ore grades.

SABMiller Plc slipped 1.9% to 3,066 pence after the U.K.-based brewing and beverage maker said the company is reviewing options for the sale of its $1.04 billion stake in hotel and casino operator Tsogo Sun Holdings.

The company said net revenue in the year ending in March increased 3% and in the fourth-quarter rose 2%. Total beverage volumes grew 2% and soft drinks volumes climbed 5%.