LVMH Fashion and Wine Revenues Fall 7%, RBS Net Drops

Nigel Thomas
25 Jul, 2014
New York City

Air France net loss narrowed to

[R]4:00 PM Frankfurt – Air France net loss narrowed to €6 million and revenue fell 1% to €6.4 billion. Carillion is in merger talk with Balfour Beatty for£3 billion. LVMH net fell 4% to €1.5 billion. RBS net tumbled 81% to £708 million. Vodafone sales climbed.[/R]

In London trading, FTSE 100 index fell 0.2% or 14.38 to 6,807.08 and in Frankfurt the DAX index slumped 0.6% or 59.42 to 9,734.64.

In Paris, CAC 40 index dropped 1% or 43.73 to 4,366.92.

Air France KLM SA climbed 3.9% to €8.97 after the France-based airline company said revenue in the second-quarter ending in June slipped 1.4% to €6.45 billion from €6.54 billion a year ago period.

Net loss in the quarter narrowed from a year earlier to €6 million compared to €158 million and diluted loss per share shrink to €0.02 from €0.53.

Carillion Plc soared 7.8% to 364.84 pence after the U.K.-based integrated support service provider confirmed preliminary merger talks with Balfour Beatty Plc for a £3 billion or $5.09 billion.

Separately the company and Amey UK Plc a transportation infrastructure services provider, jointly won the National Housing Prime contract and the Scotland and Northern Ireland joint ventures total potential value of £4.5 billion.

LVMH Moet Hennessy Louis Vuitton SA declined 6.1% to €132.60 after the France-based luxury goods retailer said revenue in the first-half ending in June jumped 3% to €14 billion from €13.63 billion a year ago period.

Net profit in the period dropped 4% from a year go to €1.51 billion compared to €1.58 billion a year earlier.

Revenues from wines and spirits segment declined 7% to €1.68 billion while revenues from fashion and leather goods business soared 7% to €5.03 billion. Perfumes and cosmetics revenue jumped 2% to €1.84 billion but watches and jewelry revenue slipped 1% to €1.27 billion.

As of the quarter ended in June, net debt-to-equity ratio of 23%.

Royal Bank of Scotland Group Plc surged 11.8% to 367.80 pence after the financial service provider said total revenue in the second-quarter ending in June fell 2.4% to £4.93 billion from £5.05 billion a year ago.

Profit in the quarter tumbled 80.7% from a year ago period to £708 million compared to £1.20 billion a year earlier.

The bank said pre-tax profit in the first-half nearly doubled to £2.65 billion from £1.37 billion and operating profit surged 267.2% to £2.60 billion up from £708 million from a year ago.

The bank forecasted that its target to cut costs in 2014 by almost £1 billion or $1.7 billion.

Vodafone Group Plc jumped 2.5% to 202.80 after the U.K.-based mobile company reported group revenue in the second-quarter ending in June climbed 6.2% to£10.20 billion and group service revenue jumped 6.2% to £9.45 billion from a year ago.