European Markets Drop; ARM, easyJet, K&S, Tungsten, Zooplus in Focus

Nigel Thomas
22 Jul, 2015
New York City

European market indexes declined between 0.6% and 1.5%. ARM net surged 38%. easyJet revenue per seat declined 5% but forecasted higher pre-tax profit for the year. K&S once again rejected new merger approach from Canada-based rival Potash Corp. Zooplus sales soared 34%.

[R]4:00 PM Frankfurt – European market indexes declined between 0.6% and 1.5%. ARM net surged 38%. easyJet revenue per seat declined 5% but forecasted higher pre-tax profit for the year. K&S once again rejected new merger approach from Canada-based rival Potash Corp. Zooplus sales soared 34%.[/R]

European markets turned lower led by a decline in technology stocks after Apple Inc reported lower than expected quarterly sales.

In London trading, FTSE 100 index dropped 101.02 or 1.5% to 6,668.05 and in Frankfurt the DAX index decreased 0.9% or 109.12 to 11,496.49.

In Paris, CAC 40 index slipped 0.6% or 30.87 to 5,075.59.

ARM Holdings Plc declined 4.7% to 990.39 pence after the U.K.-based microprocessors maker said revenues in the first-half ending in June soared 22% to £456 million form £373.7 million in a year ago period.

Net profit in the period surged 37.7% from a year ago to £162.1 million compared to £117.7 million and diluted earnings per share increased to 11.4 pence from 8.3 pence.

easyJet Plc increased 3.8% to 1,729 pence after the U.K.-based low-cost airline company reported total revenue in the third-quarter ending June fell 1% to £1.23 billion form £1.25 billion in a year ago period.

The budget airline said capacity climbed 4.7% to 20.8 million seats and the number of earned seats jumped 6.2% to 19.1 million from a year ago period.

The airline company added revenue per seat dropped 5.4% to £59.08 per seat, but above the May guidance.

For the year, the company forecasted pre-tax profit for the year ending in September to soar in the range of £620 million to 660 million compared to £581 million reported in a year ago.

K&S AG slipped 1.6% to €37.12 after the Germany-based potash producer once again rejected a fresh merger approach from Canada-based rival Potash Corp. of Saskatchewan aimed to restart talks around a possible merger with the European miner.

Tungsten Corp Plc plunged 19.6% to 70.78 pence after the U.K.-based electronic invoicing maker stated group revenues in the year ending in April climbed 19% to £23.1 million from £10.8 million in a year ago period.

Net loss in the year widened from a year ago to £27.02 million compared to £18.60 million and diluted loss per share increased to 26.34 pence from 18.60 pence.

Zooplus AG jumped 3.9% to €134 after the Germany-based pet products retailer said total sales for the first-half ending in June soared 34% to €344 million compared to €$376 million in a year ago period.

Zooplus maintained its total sales forecast for the year of about €725 million and will release its financial result on August 19.