German Employment Rises 0.7%, Vodafone Net Tumbles

Nigel Thomas
19 May, 2015
New York City

European auto sales increased for the twentieth month in a row. German employment growth in the March quarter slowed to 0.7% increase. DCC agreed to acquire France-based Butagaz from Shell for

[R]4:00 PM Frankfurt – European auto sales increased for the twentieth month in a row. German employment growth in the March quarter slowed to 0.7% increase. DCC agreed to acquire France-based Butagaz from Shell for €464 million. ICAP net declined 16%. Merck profit plunged. Vodafone net tumbled 90% to £6 billion.[/R]

European market indexes traded higher after an official from the central bank in the currency union said that the bank is planning to be more active in the early weeks of May and June.

Separately, a private survey indicated that German economic sentiment declined more than expected in May. The ZEW Index of Economic Sentiment fell to 41.9 from 53.3 in April.

German government’s statistics office said total number employed people increased 0.7% in the March quarter from a year ago quarter to 42.4 million. The increase in the employment count in December quarter was 0.9%.

In addition, auto sales in Europe increased for the twentieth month in a row in April, but the growth rate slowed down according to the latest data released by the European Automobile Manufacturers Association.

In London trading, FTSE 100 index gained 0.3% or 23.84 to 6,992.71 and in Frankfurt the DAX index climbed 1.7% or 200.20 to 11,794.48.

In Paris, CAC 40 index jumped 1.8% or 89.43 to 5,101.74.

Aveva Plc declined 5.5% to 1,890 pence after the U.K.-based engineering software maker said revenues in the year ending in March plunged 12% to £208.7 million from £237.3 million in a year ago period.

Net profit in the year tumbled 18.4% from a year ago to £41.6 million compared to £51 million and diluted earnings per share dropped to 64.92 pence from 77.99 pence.

Big Yellow Group Plc soared 6.3% to 697 pence after the U.K.-based self- storage services stated revenues in the year ending in March climbed 17% to £84.3 million from £72.2 million in a year ago period.

Net profit in the year surged 77.3% from a year ago to £105.6 million compared to £59.6 million and diluted earnings per share jumped to 71.9 pence from 42.2 pence.

DCC Plc surged 12.4% to 4,933 pence after the U.K.-based business support services provider reported revenues in the year ending in March declined 4% to £10.6 billion from £11 billion in a year ago period.

Net profit in the year climbed 19.1% from a year ago to £144.4 million compared to £121.2 million and diluted earnings per share increased 170.73 pence from 143.90 pence.

Separately, the company said its energy unit agreed to acquire France-based Butagaz S.A.S. from Shell for €464 million or £338 million.

The transaction is expected to complete in the fourth-quarter of this year.

ICAP Plc fell 0.6% to 560 pence after the U.K.-based investment company reported revenues in the year ending in March dropped 7% to £1.3 billion from £1.4 billion in a year ago period.

Net profit in the year declined 16% from a year ago to £84 million compared to £100 million and diluted earnings per share slipped 12.8 pence from 15.4 pence.

Merck KGaA slipped 1.9% to €100.30 after the Germany-based pharmaceutical company reported net sales in the first-quarter ending in March climbed 15.7% to €3.04 billion from €2.63 billion in a year ago period.

Net profit in the quarter plunged 13% from a year ago to €281.7 million compared to €325.2 million and diluted earnings per share slumped to €0.65 from €0.75.

The company said net sales in healthcare business jumped 7.4% to €1.69 billion and net sales in life science segment soared 12.4% to €738.0 million. Performance Materials business net sales surged 53.4% to €617 million.

For the year, the healthcare company forecasted net sales to between €12.3 billion and €12.5 billion and operating profit in the range of €3.45 billion euros and €3.55 billion.

Vodafone Group Plc dropped 3.3% to 226.46 pence after the U.K.-based mobile company reported revenues in the year ending in March soared 10.1% to £42.2 billion from £38.4 billion in a year ago period.

Net profit in the year tumbled 90.3% from a year ago to £5.8 billion compared to £59.3 billion and diluted earnings per share plunged 21.63 pence from 222.07 pence.

Vodafone said free cash flow in the quarter of about £1.1 billion and capital expenditure climbed 45.7% to £9.2 billion while net debt in the quarter of about £22.3 billion.