ThyssenKrupp Restructuring Trims Debt, RWE Net Drops 62%

Nigel Thomas
14 Aug, 2014
New York City

Novozymes net surged 20% to 1.28 billion kronor. RWE profit tumbled 62% to

[R]4:00 PM Frankfurt – Novozymes net surged 20% to 1.28 billion kronor. RWE profit tumbled 62% to €749 million after revenue declined 10% and plans to decommission further power stations. Rheinmetall net swung to profit of €2 million as sales jumped. ThyssenKrupp net swung to a profit of €42 million.[/R]

In London trading, FTSE 100 index gained 0.5% or 31 to 6,687.68 and in Frankfurt the DAX index increased 0.3% or 29.53 to 9,228.41.

In Paris, CAC 40 index rose 0.3% or 11.25 to 4,206.04.

Novozymes A/S declined 6.4% to 260.20 kronor after the Denmark-based biotechnology company reported sales in the second-quarter ending in June jumped 4% to 6.09 billion kronor from 5.87 billion kronor a year ago period.

Net income in the quarter surged 20% from a year earlier to 1.28 billion kronor compared to 1.07 billion kronor and diluted earnings per share increased to 4.05 kronor from 3.37 kronor.

RWE AG slipped 1.5% to €28.89 after the Germany-based electricity and gas supplier said revenue in the first-half ending in June declined 9.6% to €25.09 billion from €27.74 billion a year ago period.

Profit in the period tumbled 62% from a year ago to €749 million compared to €1.99 billion and earnings per share plunged to €1.22 from €3.23.

The company confirmed that its plans to decommission around 1,000 megawatts of additional generation capacity by 2017 as well as terminating further supply contracts for the use of around 500 mw of capacity.

The company added electricity sales in the period declined 6% to 128.4 billion kilowatt hour mainly due to mild winter and a slight decrease in customer numbers.

Rheinmetall AG rose 0.2% to €40.88 after the Germany-based bearings maker reported sales in the first-half ending in June climbed 8% to €2.13 billion from €1.98 billion a year ago period.

Net in the period swung to €2 million compared to a loss of €25 million from a year ago period and earnings per share swung to €0.01 from a loss per share of €0.66.

Rheinmetall said earnings before interest and taxes improved by €49 million to €30 million from a loss of €19 million in the year ago period.

The company added defense sales jumped 7% to €895 million and earnings in the automotive unit increased jumped to €93 million.

ThyssenKrupp AG gained 0.5% to €21.08 after the Germany-based technology company said net sales in the third-quarter ending in June climbed 8.3% to €10.74 billion from €9.92 billion a year ago period.

Net in the quarter swung to profit from a year ago to €42 million compared to a loss of €425 million and diluted earnings per share swung to €0.07 from a loss of €0.76.

The company said group net debt decreased to €4.1 billion from €5 billion at the end of September 2013 quarter.

The conglomerate is in a middle of drastic restructuring and the industrial products maker is selling assets and cutting jobs and lowering business investments.