Europe Earnings: Berkeley, BMW, First Quantum, Premier Foods, Rheinmetall

Nigel Thomas
18 Jun, 2014
New York City

Berkeley Group profit surged 40% to

[R]4:00 PM Frankfurt – Berkeley Group profit surged 40% to £293 million on 18% increase in revenues. BMW plans to reduce operating costs by €4 billion. First Quantum Minerals agreed to acquire Lumina Copper for $470 million. Premier Foods spun off its brand business.[/R]

In London trading, FTSE 100 index gained 0.3% or 17.66 to 6,784.43 and in Frankfurt the DAX index rose 0.2% or 20.14 to 9,940.46.

In Paris, CAC 40 index inched lower 0.05% or 2.25 to 4,533.82.

Berkeley Group Holdings Plc slipped 1.6% to 2,225 pence after the residential property developer reported revenue in the year ending in April climbed 18.1% to £1.62 billion from £1.37 billion a year ago.

Profit in the year surged 39.7% to £292.9 million compared to £209.7 million and diluted earnings per share jumped 34.3% to 188.4 pence from 140.3 pence a year earlier.

The homebuilder said in the year new homes completed climbed 30% to 3,742 units from a year ago and £353 million invested in nine new sites enough to build a further 2,500 new homes.

Bayerische Motoren Werke AG rose 0.9% to €91.61 after the Germany-based automobile company plans to reduce its cost of as much as €4 billion or $5.4 billion.

First Quantum Minerals Limited Plc declined 3.2% to 11.56 pence after the U.K.-based mineral explorer agreed to acquire Canada-based Lumina Copper Corp for $470 million after a court-approved plan of arrangement for all of Lumina’s outstanding shares.

First Quantum already holds 2.5 million shares of Lumina.

Premier Foods Plc plunged 9.2% to 52.19 pence and the food processing company spun off its Bird''s Custard, Angel Delight and Marvel brands to help ease costs.

Specialty Powders will contribute its businesses, Phoenix Foods and Agglomeration Technology in consideration of 51% controlling stake and a loan from the joint venture to repay the existing debt.

The company in a joint venture with Specialty Powders will manufacture powder beverages and desserts.

Power Brands sales for the second-quarter anticipated to negative and below the expectations due to subdued grocery markets after sales to rose between 2% and 3% and profit expectations for the fiscal year ending in December remain unchanged.

Rheinmetall AG jumped 2.2% to €52.04 after the Germany-based defense group plans to sign an order worth €2.7 billion or $3.7 billion from Algeria to manufacture 980 Fuchs 2 military vehicles.