German Lawmakers Approve Greek Proposal; Electrolux, Ericsson in Focus

Nigel Thomas
17 Jul, 2015
New York City

German lawmakers approve Greek proposal but a significant minority of ruling party disapproved. Electrolux net swung to profit of 608 million kronor. Ericsson profit plunged 20% and revenues climbed 11%. Fortum net surged 86% to

[R]4:00 PM Frankfurt – German lawmakers approve Greek proposal but a significant minority of ruling party disapproved. Electrolux net swung to profit of 608 million kronor. Ericsson profit plunged 20% and revenues climbed 11%. Fortum net surged 86% to €4.9 billion. Givaudan net soared 16%. Scania profit jumped 14%.[/R]

European markets closed lower and trimmed weekly gains and German lawmakers authorized government to negotiate a third bailout for Greece.

Lawmakers approved the authority by a 439-to-119 vote with 40 members abstaining from the process. But, nearly a fifth of Chancellor Merkel’s coalition voted ‘no’ for the proposal.

In London trading, FTSE 100 index fell 0.4% or 26.68 to 6,769.77 and in Frankfurt the DAX index decreased 0.5% or 57.17 to 11,659.59.

In Paris, CAC 40 index slid 7.41 to 5,114.09.

For the week, FTSE 100 index increased 1.5% and the DAX index jumped 3% and the CAC 40 index soared 4.3%.

888 Holdings Plc surged 11.3% to 178 pence after the online casino and poker gaming services provider agreed to acquire rival online gaming and entertainment company Bwin.party Digital Entertainment Plc for £898.3 million in cash and stock.

The shareholder of Bwin.party will receive 39.45 pence in cash and 0.404 new 888 shares.

Electrolux AB slipped 2.1% to 252.30 kronor after the Sweden-based household appliances maker reported net sales in the second-quarter ending in June soared 19.1% to 31.35 billion kronor from 26.33 billion kronor in a year ago period.

Net in the quarter swung to profit from a year ago to 608 million kronor compared to a loss of 92 million kronor and diluted earnings per share swung to 2.12 kronor from diluted loss per share of 0.32 kronor.

Ericsson jumped 4.1% to 89 kronor after the Sweden-based communications services provider reported net sales in the second-quarter ending in June climbed 11% to 60.7 billion kronor from 54.8 billion kronor in a year ago period.

Net profit in the quarter plunged 20% from a year ago to 2.1 billion kronor compared to 2.7 million kronor and diluted earnings per share slipped to 0.64 kronor from 0.79 kronor.

The company said revenues in networks segment''s sales jumped 8% to 31.2 billion kronor and global services revenues climbed 14% to 26.4 billion kronor from a year ago period.

Fortum Oyj plunged 7.3% to €15.93 after the Finland-based energy-related services provider said revenues in the first-half ending in June declined 12.4% to €1.83 billion from €2.09 billion in a year ago period.

Net profit in the period surged 85.9% from a year ago to €4.89 billion compared to €2.63 billion and diluted earnings per share climbed to €5.38 from €2.81.

Givaudan SA jumped 4.3% to 1,755 Swiss francs after the Switzerland-based flavors and fragrance maker reported group sales in the first-half ending in June edged down 0.5% to 2.18 billion francs from 2.19 billion francs in a year ago period.

Net profit in the period soared 15.5% to 339 million francs compared to 305 million francs and diluted earnings per share increased to 36.37 francs from 32.71 francs.

Scania AB, the Sweden-based Volvo trucks, buses and coaches maker said net sales in the first-half ending in June climbed 7% to 46.80 billion kronor from 43.92 billion kronor in a year ago period.

Net profit in the period jumped 14% from a year ago to 3.38 billion kronor compared to 2.97 billion kronor.