European Markets Advance, Hennes & Mauritz Net Surges

Nigel Thomas
24 Mar, 2015
New York City

Hennes & Mauritz profit surged 36% to 3.6 billion kronor. U.K. based Kingfisher offered

[R]4:00 PM Frankfurt – Hennes & Mauritz profit surged 36% to 3.6 billion kronor. U.K. based Kingfisher offered €275 million for its French rival Mr Bricolage SA. Land Securities agreed to divest 95% stake in an office building in London for £268 million to Blackstone. Wolseley net swung to a loss.[/R]

European markets traded higher after a composite index tracking activities in manufacturing surged to a four-year high of 54.1 in March.

The survey among 19 euro zone member nations showed growing activities and may offer early sign of the impact of the European Central Bank’s bond purchase program.

In London trading, FTSE 100 index rose 0.2% or 14.47 to 7,052.14 and in Frankfurt the DAX index gained 0.7% or 86.12 to 11,981.96.

In Paris, CAC 40 index increased 0.6% or 32.38 to 5,086.90.

H & M Hennes & Mauritz AB plummeted 3.2% to 342.20 kronor after the Sweden-based apparel retailer said net sales in the first-quarter ending in February soared 25.3% to 40.28 billion kronor from 32.14 billion kronor in a year ago period.

Net profit in the quarter surged 36.2% from a year ago to 3.61 billion kronor compared to 2.65 billion kronor and earnings per share jumped to 2.18 kronor from 1.60 kronor.

Kingfisher Plc slipped 1.7% to 365.90 pence and the France-based Mr Bricolage SA was suspended on Paris stock exchange after the U.K.-based retailer made an unsolicited merger proposal of €275 million.

Mr Bricolage board members and ANPF, a group of a major shareholder of the smaller rival, have questioned the deal value.

Land Securities Group Plc gained 1.1% to 1,289 pence after the real estate developer agreed to divest its 95% stake of office building in Times Square, London to the U.S.-based real estate funds manager Blackstone Group LP for about £268.4 million

The transaction is expected to complete by the end of July.

Wolseley Plc declined 4.2% to 4,034 pence after the Switzerland-based plumbing, heating and building materials distributor reported total revenues in the first-half ending in January climbed 8.9% to £6.44 billion from £5.91 billion in a year ago period.

Net in the period swung to a loss from a year ago to £58 million compared to profit if £229 million and diluted earnings per share swung to a loss of 4.6 pence from profit of 83.4 pence.