Greece and Lenders Miss One More Deadline, Swatch Group Net Eases

Nigel Thomas
28 May, 2015
New York City

Ferrexpo net tumbled 53% on 38% decline in revenues. Kingfisher sales and retail profit each dropped by 5%. Sports Direct climbed on positive outlook. Swatch Group profit slightly declined to 1.416 billion francs.

[R]4:00 PM Frankfurt – Ferrexpo net tumbled 53% on 38% decline in revenues. Kingfisher sales and retail profit each dropped by 5%. Sports Direct climbed on positive outlook. Swatch Group profit slightly declined to 1.416 billion francs.[/R]

European market indexes traded down on mixed messages about a deal between international lenders and Greece.

Deadlines have come and gone and Greece and lenders remain far apart in finding a political and financial solution to cut its pension and operating costs. Greece is scheduled to pay next payment of 1.6 billion euros in June and the latest deadline set for the end of May is not expected to be fulfilled.

Euro zone politicians may swing into action as the current bailout will end and the money earmarked for Greece will no longer be available after the end of June.

Neither the euro zone politicians nor the ECB and IMF officials are willing to take steps and bring the crisis to a head. But, the time and money is running out for Greece.

In London trading, FTSE 100 index fell 0.3% or 24.06 to 7,009.05 and in Frankfurt the DAX index slipped 0.7% or 91.50 to 11,679.55.

In Paris, CAC 40 index dropped 1.1% or 58.85 to 5,123.68.

Ferrexpo Plc gained 1% to 72.75 pence after the U.K.-based iron ore producer said revenues in the first-quarter ending in March plunged 38% to $258 million from $413 million in a year ago period.

Net income in the quarter tumbled 52.6% from a year ago to $58.4 million compared to $123.2 million and diluted earnings per share slumped to 9.76 cents from 20.46 cents.

The company added total pellet production in the quarter jumped to 2.89 million tons from 2.82 million tons in the same period a year ago.

Infinis Energy Plc climbed 3.9% to 186 pence after the U.K.-based renewable energy provider stated revenues in the year ending in March fell 1% to £236 million from £238.4 million in a year ago period.

Net in the quarter swung to profit from a year ago to £20.7 million compared to a loss of £11.8 million and diluted earnings per share swung to 6.9 cents from a diluted loss of 3.9 cents.

Kingfisher Plc jumped 2.5% to 376 pence after the U.K.-based home improvement retailer reported total group sales in the first-quarter declined 4.6% to £2.59 million from a year ago period.

Same store sales in the quarter increased 0.8%.

Retail profit in the quarter dropped 4.8% from a year ago to £150 million compared to same period a year ago.

Palace Capital Plc increased 1.6% to 386 pence after the U.K.-based real estate developer signed a conditional agreement to acquire mixed use leisure scheme in Northampton, East Midlands and it will issue new shares to rise £20.7 million.

Sports Direct International Plc soared 4% to 685.50 pence after the U.K.-based sports and leisure clothing, footwear and equipment retailer forecasted operating profit for the year ending on April 28 of about £380 million and net debt dropped to £60 million from £212 million at 27 April 2014.

The sports retailer will release its preliminary results for the year on July 16.

The Swatch Group SA jumped 1.2% to 382.20 Swiss francs after the Switzerland-based watch and jewelry maker said gross sales in the year ending in March climbed 4.6% to 9.22 billion francs from a year ago period.

Net profit in the year slightly decline to 1.416 billion francs and operating profit of 1.75 billion francs from the same period a year ago.

Tate & Lyle Plc dropped 2.7% to 583 pence after the U.K.-based food ingredients provider reported sales in the year ending in March plunged 14.2% to £2.36 billion from £2.75 billion in a year ago period.

Profit in the year tumbled 89% from a year ago to £30 million compared to £273 million and diluted earnings share dropped to 6.5 pence from 58 pence.

As of March, the company said net debt increased to £504 million from £353 million in a same period a year ago.