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Sarla Buch
10 Feb, 2017
New York City

Kering net surged 17% on 7% increase in revenues. L''Oreal net declined 6% and cosmetic products maker said Body Shop. Reckitt Benckiser agreed to buy the U.S.-based Mead Johnson for

[R]4:00 PM Frankfurt – Kering net surged 17% on 7% increase in revenues. L''Oreal net declined 6% and cosmetic products maker said Body Shop. Reckitt Benckiser agreed to buy the U.S.-based Mead Johnson for £13.2 billion. Renault profit surged 20%.[/R]

In London trading, FTSE 100 index rose 20.93 or 0.3% to 7,250.43 and in Frankfurt the DAX index gained 28.75 or 0.3% to 11,671.42.

In Paris, CAC 40 index slid 2.43 to 4,823.27.

For the week, FTSE 100 index gained 0.8%, the DAX index rose 0.2% and the CAC 40 index edged down 0.04%.

Kering SA jumped 3.9% to €233.10 after France-based luxury goods retailer reported revenues in the second-half ending in December advanced 6.9% from a year ago to €12.4 billion.

Net profit in the period surged 16.9% from a year ago to €813.5 million compared to €696 million and diluted earnings per share gained to €6.46 from €5.52.

L''Oreal SA dropped 2.3% to €170.05 after France-based cosmetic products maker said revenues in the second-half ending in December increased 2.3% from a year ago to €25.84 billion.

Net profit in the period declined 6.1% from a year ago to €3.1 billion compared to €3.3 billion and diluted earnings per share decreased to €5.50 from €5.84.

L''Oreal said sales in the skincare brand The Body Shop dropped 5% to €920.8 million from a year ago period.

The cosmetic products maker said it is ""exploring all strategic options"" including potential sale of The Body Shop. Chairman and chief executive officer Jean-Paul Argon reported ethical beauty retailer is losing sales and profits but he added no decision has been taken so far.

Reckitt Benckiser Group Plc rose 0.3% to 7,264 pence after the U.K.-based health, hygiene and home products maker agreed to acquire the U.S.-based baby formula maker Mead Johnson Nutrition Co for about £13.2 billion or $16.6 billion.

“The acquisition will strengthen our presence in developing markets particularly in China,” said chief executive Rakesh Kapoor. The company is estimating annual cost savings of about £200 million.

With the acquisition, China will jump to the second largest market trailing the U.S.

Reckitt agreed to pay $90 per share in cash, including debt, the deal is valued at $17.9 billion. The transaction is expects to close by the end of the third-quarter.

Separately, Reckitt said revenues in the fourth-quarter ending in December soared 11% from a year ago to £9.9 billion.

Net income in the quarter jumped 5% from a year ago to £1.8 billion compared to £1.7 billion and diluted earnings per share increased to 256.5 pence from 240.9 pence.

The hygiene products maker said comparable sales in the year rose 1% in the Europe and North America and in emerging markets surged more than 8%.

Renault SA gained 1.8% to €84.25 after France-based automobiles manufacturer said revenues in the year ending in December soared 13.1% from a year ago to €51.24 billion.

Net profit in the year surged 19.7% from a year ago to €3.5 billion compared to the €2.9 billion and diluted earnings per share gained to €5.50 from €5.84.

Renault said registrations in the year jumped 13.3% to 3.18 million units.

Renault said it will present a new five-year strategic plan later in the year and the company forecasted revenues to jump to €70 billion in the next five years, representing 37% increase from the 2016

Umicore SA plunged 5.6% to €51.02 after Belgium-based batteries and photovoltaic products maker stated revenues in the year ending in December rose 1% from a year ago to €2.7 billion and operating profit jumped 4% to €527 million.