Barclays, Merck Net Drop; Glencore Net Swings to Profit

Nigel Thomas
03 Mar, 2015
New York City

Barclays net slid 35% to

[R]4:00 PM Frankfurt – Barclays net plunged 35% to £845 million and set aside more funds to cover potential fines. BAT proposes to acquire Brazil-based Souza Cruz for £2.3 billion. Glencore net swung to profit $2.4 billion. Merck profit fell 3% to €1.2 billion. Wirecard agreed to acquire customer portfolio from Lufthansa AirPlus.[/R]

In London trading, FTSE 100 index slipped 0.3% or 22.79 to 6,917.85 and in Frankfurt the DAX index slid 0.1% or 14.45 to 11,395.91.

In Paris, CAC 40 index fell 0.3% or 12.61 to 4,904.71.

Barclays Plc declined 2.9% to 255.07 pence after the U.K.-based financial service provider reported revenues in the year ending in December jumped 4.1% to £2.09 billion from £2.18 billion a year ago period.

Net profit in the year plunged 35% from a year ago to £845 million compared to £1.30 billion and diluted earnings per share slumped to 0.7 pence from 3.7 pence.

The bank set aside more funds to cover potential fines for market manipulation of £1.25 billion including additional provision of £750 million recognized in the fourth quarter.

British American Tobacco Plc rose 0.6% to 3,778.56 pence after the U.K.-based tobacco product maker submitted proposal to acquire 24.7% stake in Brazil-based cigarette maker Souza Cruz SA for about £2.3 billion or $3.53 billion.

Glencore Plc dropped 2.3% to 293.70 pence after the Switzerland-based natural resource company reported revenues in the year ending in December declined 5% to $221.07 billion from $232.69 billion a year ago period.

Net in the year swung to profit from a year ago to $2.44 billion compared to a loss of $7.94 billion and diluted earnings per share swung to 18 cents from diluted loss per share of 73 cents.

Groupama, the France-based insurance company plans to raise around €485 million or $542.3 million from the sale of 28.4 million shares in Veolia Environnement VE SA.

Heidelberger Druckmaschinen AG climbed 5.3% to €2.31 after the Germany-based printing machines maker signed an agreement with investment company CoBe Capita to acquire the Netherlands-based European Printing Systems Group for undisclosed amount.

Merck KGaA gained 1.5% to €95.67 after the Germany-based pharmaceutical company reported total revenues in the year ending in December jumped 3.7% to €11.50 billion from €11.09 billion a year ago period.

Net profit in the year dropped 3.3% from a year ago to €1.16 billion compared to €1.20 billion and diluted earnings per share slipped to €2.66 from €2.77.

Merck forecasted slightly increase in organic sales for the fiscal 2015 and stable or slightly increase in adjusted EBITDA from fiscal 2014.

Wirecard AG declined 2.1% to €40.35 after the Germany-based electronic payment services provider agreed to acquire customer portfolio from Lufthansa AirPlus Servicekarten GmbH and other assets from Lufthansa.

The agreements will be assigned to Wirecard during the first-half year of 2015.