Credit Agricole, Deutsche Post Profit Jump; ArcelorMittal Net Swing to Profit

Sarla Buch
08 Nov, 2016
New York City

ArcelorMittal net swung to profit despite steel shipment and production declined. Credit Agricole profit doubled but revenues declined. Deutsche Post said profit more than double. Marks and Spencer net tumbled 91%. Total SA signed a preliminary agreement with Iran government.

[R]4:00 PM Frankfurt – ArcelorMittal net swung to profit despite steel shipment and production declined. Credit Agricole profit doubled but revenues declined. Deutsche Post said profit more than double. Marks and Spencer net tumbled 91%. Total SA signed a preliminary agreement with Iran government.[/R]

In London trading, FTSE 100 index rose 10.83 or 0.2% to 6,818.72 and in Frankfurt the DAX index decreased 24.49 or 0.2% to 10,430.67.

In Paris, CAC 40 index fell 9.39 or 0.2% to 4,451.88.

ArcelorMittal SA declined 5.9% to €5.77 after Luxembourg-based steel producer reported revenues in the third-quarter ending in September plummeted 6.8% from a year ago to $14.52 billion.

Net in the quarter swung to profit from a year ago to $680 million compared to the loss of $711 million and diluted earnings per share swung to 22 cents from diluted loss per share of 31 cents.

The steel producer said shipments in the quarter dropped 3.6% to 20.3 million metric tons and production crude steel in fell 2.2% to 22.6 million tons while own iron ore production in the quarter plunged 11% to 13.7 million metric tons.

ArcelorMittal forecasted steel shipments in the fourth-quarter may similar to third-quarter steel shipment and that lead to a decline in profitability.

Credit Agricole SA soared 4.8% to €10.20 after France-based banking and insurance services provider said revenues in the third-quarter ending in September declined 4.6% from a year ago to €3.74 billion.

Net profit in the quarter double from a year ago to €1.86 billion compared to the €930 million.

Deutsche Post AG increased 1.5% to €28.72 after Germany-based logistics services provider reported revenues in the nine-month ending in September slumped 4.5% from a year ago to €41.9 billion.

Net profit in the period more than doubled from a year ago to €1.80 billion compared to the €870 million and diluted earnings per share jumped to €1.43 from €0.69.

Marks and Spencer Group Plc plunged 4% to 334.90 pence after the U.K.-based speciality retailer said revenues in the first-half ending on October 1 were flat from a year ago to £4.99 billion.

Net income in the period tumbled 90.7% from a year ago to £15.9 million compared to the £170.7 million and diluted earnings per share dropped to 1 pence from 10.4 pence.

The retailer plans to close loss-making 53 international stores, including all 10 stores in China, half of in France and all shops in Belgium, Estonia, Hungary, Lithuania, the Netherlands, Poland, Romania and Slovakia.

Total SA fell 0.1% to €42.85 after France-based oil and gas explorer signed a preliminary agreement with Iran government to develop phase 11 part of the South Pars gas field with the National Iranian Oil Company.

The press official of Iranian oil ministry said the government plans to sign $6 billion deal with France-based oil and gas explorer to develop an offshore gas field.

The South Pars 11 project will have a production capacity of 1.8 billion cubic feet per day or 370,000 barrels of oil equivalent per day.

These marked the first Western energy investment since international sanctions lifted from this year.

The deal may complete in the next six months, the Iranian oil-ministry official said.

""Discussions are going on and we''ll see if we can sign in the coming days,"" Patrick Pouyanne, chairman and chief executive officer of Total told CNN Money; however he added “I will not travel to Tehran.”

“The agreement will encourage” Mehdi Varzi, a consultant who advised companies on Middle Eastern investments also said “It’s less politically controversial than oil.”

SHANA, the Iranian news said Total and China National Petroleum Corp to sign the contract with National Iranian Oil Company for second phase of South Pars gas field.