Philips Net Swings to Profit, TNT Express Net Loss Narrows

Nigel Thomas
26 Oct, 2015
New York City

Philips net swung to profit on 13% increase in revenues and reaffirmed to spin-off its Lighting unit in the first-half in 2016. Peugeot revenues jumped 3%. Standard Chartered plans to closed equity derivatives and convertible bonds businesses. TNT Express net loss narrowed.

[R]4:00 PM Frankfurt – Philips net swung to profit on 13% increase in revenues and reaffirmed to spin-off its Lighting unit in the first-half in 2016. Peugeot revenues jumped 3%. Standard Chartered plans to closed equity derivatives and convertible bonds businesses. TNT Express net loss narrowed.[/R]

In London trading, FTSE 100 index slipped 23.23 or 0.4% to 6,421.01 and in Frankfurt the DAX index increased 39.99 or 0.3% to 10,835.55.

In Paris, CAC 40 index fell 11.20 or 0.2% to 4,912.10.

Koninklijke Philips NV fell 0.3% to €23.68 after the Netherland-based consumer and healthcare products maker reported sales in the third-quarter ending in September soared 12.5% from a year ago to €5.84 billion.

Net in the quarter swung to profit from a year ago to €324 million compared to a loss of €103 million and diluted earnings per share of €0.34 from a diluted loss per share of €0.11.

Philips reaffirmed spinoff of its Lighting business is on schedule in the first-half of 2016 with estimated costs of about €200 million to €300 million booked in 2015.

Peugeot S.A slipped 1.8% to €15.94 after the passenger cars and trucks maker reported group revenues in the third-quarter ending in September jumped 3.2% form a year ago to €12.39 billion.

The auto maker forecasted operating free cash flow to increase to €2 billion through 2017.

Standard Chartered Plc fell 0.7% to 738.90 pence after the U.K.-based banking group plans to close its equity derivatives and convertible bonds businesses as part of a planned spin-off of its stock brokerage and equity research divisions.

However, the bank will continue to offer equity financial advices to the corporate and institutional clients and securities trading for retail and private banking clients.

TNT Express NV slid 0.1% to €7.65 after the Netherland-based parcel delivery services provider said revenues in the third-quarter ending in September jumped 2.3% from a year ago to €1.67 billion.

Net loss in the quarter narrowed from a year ago to €49 million compared to €55 million. On segment basis, international revenues were affected by the decline in Chinese exports, especially to Europe.

Nine-month revenues increased 3.3% to €5.05 billion from €4.89 billion and the operating loss declined to €19 million from €33 million.

WPP Plc, the U.K.-based privately-based communications services provider stated revenues in the third-quarter ending in September soared 5.9% from a year ago to €2.93 billion.

As of September, net debt for the nine-month period increased by £403 million to £3.44 billion.

The company estimated diluted earnings per share for the year to increase between 10% and 15%.