Credit Suisse Net Tumbles, Fiat Chrysler set $52 for Ferrari IPO

Nigel Thomas
21 Oct, 2015
New York City

Credit Suisse profit tumbled 24% on 8% decline in revenues and plans to raise 6 billion Swiss francs through new shares. Pearson plunged on weak sales numbers. Fiat Chrysler announced pricing of initial public offering. Sky operating profit in the quarter soared 10%.

[R]4:00 PM Frankfurt – Credit Suisse profit tumbled 24% on 8% decline in revenues and plans to raise 6 billion Swiss francs through new shares. Pearson plunged on weak sales numbers. Fiat Chrysler announced pricing of initial public offering. Sky operating profit in the quarter soared 10%.[/R]

In London trading, FTSE 100 index edged up 3.29 to 6,348.42 and in Frankfurt the DAX index gained 90.42 or 0.9% to 10,238.10.

In Paris, CAC 40 index increased 21.29 or 0.6% to 4,695.10.

Credit Suisse Group AG, the Switzerland-based financial services provider reported net revenues in the third-quarter ending in September plunged 8% from a year ago to $5.16 Swiss francs.

Net income in the quarter tumbled 24% from a year ago to 779 million francs compared to 1.03 billion francs and diluted earnings per share slipped to 0.45 francs from 0.55 francs.

Separately, today the bank plans for capital raise of about 6 billion Swiss francs or $6.28 billion through offering of new shares and also intends to reduce the number of staff in Switzerland by a net 1,600 in three-years and cut the number of its investment bank staff in London.

Deutsche Telekom AG gained 0.3% to €15.73 after the Germany-based communication company is considering to sell its T-Mobile Netherlands unit.

Separately, the company announced a strategic partnership with Wandera to deliver its mobile gateway services to its business customers.

Fiat Chrysler Automobiles plunged 5.3% to €13.47 after the auto maker set the price of its initial public offering of 17.18 million shares at $52 per share for its luxury car division Ferrari.

Fiat Chrysler said the offering is the part of a series of transactions to separate Ferrari from the company.

Pearson Plc plummeted 15.9% to 999 pence after the U.K.-based education and media group said sales in the third-quarter ending in September declined 5% and full-year profit will be at the lower end of the range of 70 pence to 75 pence from the previous range of 75 pence to 80 pence.

Pearson said lower earnings estimate mainly due to weak enrolments at colleges in the United States and low volume in the school text book purchases in parts of South Africa.

Sky Plc jumped 2.5% to 1,096.20 pence after the entertainment and communications services provider reported group revenues in the first-quarter ending in September increased 6% from a year ago to £2.8 billion.

The company said group operating profit in the quarter soared 10% from a year ago to £375 million compared to £340 million.

In the quarter, the company added over new customers 130,000, 7% higher than the year ago period and total base jumped to 54.72 million from 50.47 million in last year. The broadband subscription growth in the U.K. surged 77% from a year ago.