Airbus Wins

Sarla Buch
11 Jul, 2016
New York City

Airbus signed a deal worth

[R]4:00 PM Frankfurt – Airbus signed a deal worth £3 billion with Virgin Atlantic for 12 Airbus A350. Rolls-Royce agreed to acquire 53.1% stake in Spain-based ITP for €720 million and also won service order for $900 million from Virgin Atlantic.[/R]

In London trading, FTSE 100 index jumped 92.22 or 1.4% to 6,682.86 and in Frankfurt the DAX index soared 194.61 or 2% to 9,823.86.

In Paris, CAC 40 index advanced 72.42 or 1.7% to 4,263.10.

Airbus Group SE jumped 2.4% to €50.22 after Bloomberg reported Netherlands-based aerospace and defense group secured an order for as many as 100 jetliners from AirAsia Bhd for a list price of $12.57 billion.

In addition, Airbus also reported that the U.K.-based Virgin Atlantic Airways Limited signed a deal to buy 12 Airbus A350-1000 long-range aircraft for a list price of £3 billion or $4.4 billion. The first aircraft is expected to be delivered in 2019.

Pinewood Group Plc gained 1.7% to 551.62 pence after the U.K.-based film and television studio operator said group revenues in the year ending in March jumped 10.9% from a year ago to £83.2 million.

Net income in the year was flat from a year ago at £8.1 million and diluted earnings per share fell 14.2 pence from 16.4 pence.

However, the film and television studio operator said operating profit in the year surged 134.5% to £13.6 million and pre-tax profit soared 56% to £7.8 million from a year ago period.

Rolls-Royce Holding Plc slipped 1.6% to 723.50 pence after the U.K.-based power and propulsion solutions provider agreed to acquire 53.1% stake in Spain-based aircraft engine and components maker Industria de Turbo Propulsores SA from SENER Grupo de Ingeniería SA for about €720 million.

The transaction is expected to close in early 2017.

Separately the company signed a production contract totalling $216 million for the LiftSystems that provide powered lift capability to the F-35B Lightning II aircraft.

Rolls-Royce today also secured long term service order from Virgin Atlantic worth about $900 million for Trent XWB engines and for 12 Airbus A350-1000 aircraft.

Rolls-Royce schedule to report its results for the six-month period ending in June on July 28.

SThree Plc declined 5.4% to 229.88 pence after the U.K.-based staffing services provider said revenues in the first-half ending in May soared 10% from a year ago to £443.5 million.

Net income in the year fell 1.8% from a year ago to £9.3 million compared to £9.5 million and diluted earnings per share were flat at 7 pence from a year ago period.