Cobham to Launch

Sarla Buch
02 Mar, 2017
New York City

Cobham plans to launch a rights issue of

[R]4:00 PM Frankfurt – Cobham plans to launch a rights issue of £500 million. Deutsche Telekom too impairment charges of €2.3 billion linked to BT Group. LafargeHolcim net swung to profit. Travis Perkins net tumbled 92%.[/R]

In London trading, FTSE 100 index edged up 1.18 to 7,384.14 and in Frankfurt the DAX index slid 2.45 to 12,063.90.

In Paris, CAC 40 index rose 1.89 to 4,962.24.

Cobham Plc surged 11.4% to 136.10 pence after the U.K.-based communication equipment provider said revenues in the year ending in December slumped 9.5% from a year ago to £1.9 billion.

Net loss in the year widened from a year ago to £795.1 million from £37.7 million and diluted earnings per share increased to 52.8 pence from 2.8 pence.

Cobham said higher net loss in the year was due to non-cash impairment of goodwill and other intangible fixed assets of £573.8 million compared to £26.6 million in fiscal 2015.

Separately, today Cobham said it plans to launch another rights issue in less than a year for up to £500 million that will be completed in the second-quarter of fiscal 2017.

Deutsche Telekom AG slipped 1.6% to €16.15 after Germany-based fixed and wireless services provider reported net revenues in the year ending in December jumped 5.6% from a year ago to €73.1 billion.

Net income in the year declined 17.8% from a year ago to €2.7 billion from €3.3 billion and diluted earnings per share dropped to €0.58 from €0.71.

Deutsche Telekom AG reported impairment loss of €2.2 billion in its stake in the U.K. based BT Group Plc, as the telecom carrier lowered the value after the UK voted to leave the European Union and drop in pound.

The mobile network provider forecasted adjusted operating profit in fiscal 2017 may increase less than 4% to €22.2 billion.

Henkel AG & Co KGaA gained 1% to €103.75 after Germany-based consumer goods maker said it is in talk to acquire Darex Packaging Technologies of GCP Applied Technologies on cash and debt free basis for about €995 million or $1.05 billion.

LafargeHolcim Ltd jumped 3.6% 60.10 Swiss francs after Switzerland-based cement producer reported net sales in the year ending in December declined 14% from a year ago to 26.9 billion francs.

Net in the year swung to profit to 1.8 billion francs from 1.5 billion francs in a year ago and diluted earnings per share swung to 2.96 francs from diluted loss per share of 3.11 francs.

The cement producer forecasted demand in fiscal 2017 to increase between 2% and 4%.

Sports Direct International Plc slipped 0.9% to 296.50 pence on speculation that the U.K.-based sporting goods retailer plans to acquire struggling luxury lingerie brand Agent Provocateur from the private equity group 3i for about £30 million.

However, 3i bought a majority stake of lingerie brand for £60 million in 2007.

Travis Perkins Plc plunged 8.1% to 1,438.75 pence after the U.K.-based home improvement and construction material supplier reported revenues in the year ending in December jumped 4.6% from a year ago to £6.2 billion.

Profit in the year tumbled 91.7% from a year ago to £14.1 million from £168 million and diluted earnings per share dropped to 5 pence from 66.2 pence.