Reckitt Sales Slump on Cyber Attack, Ryanair Warns Softer Prices

Sarla Buch
24 Jul, 2017
New York City

Partners Group agreed to buy the U.K.-based Civica for

[R]4:00 PM Frankfurt – Partners Group agreed to buy the U.K.-based Civica for £1 billion. Ryanair said profit and revenues soared but warned softer airfares in the next quarter. Reckitt Benckiser said it is still dealing with the aftermath of the cyber attack a month ago.[/R]

In London trading, FTSE 100 index slumped 72.18 or 0.9% to 7,381.15 and in Frankfurt the DAX index decreased 41.83 or 0.3% to 12,196.25.

In Paris, CAC 40 index increased 14.17 or 0.3% to 5,132.28.

B&M European Value Retail SA jumped 4.7% to 356.20 pence after the Sunday Times said ASDA a subsidiary of Wal-Mart Stores and supermarket operator consider bidding for the discount stores operator for about £4.4 billion or $5.7 billion.

Icade SA decreased 0.9% to €72.77 after France-based real estate developer said revenues in the first-half ending in June jumped 19% from a year ago to €775.9 million.

Net profit in the period surged to €77.2 million from €15.4 million from a year ago six-month period and earnings per share advanced to €1.04 from €0.21.

Partners Group AG decreased 0.6% to 607 Swiss francs after Switzerland-based investment and asset manager agreed to buy the U.K.-based privately held software and services provider Civica Group Limited from OMERS Private Equity for about £1 billion or $1.30 billion.

Quorn Foods, the U.K.-based privately held meat products provider plans to invest £150 million to double the production and estimated it plans to create 300 new jobs in next five years.

The meat processor reported pre-tax operating profit in the first-half of £13.7 million.

Ryanair Holdings Plc declined 4.1% to 17.40 pence after Ireland-based low-cost passenger airline reported sales in the first-half ending in June soared 13% from a year ago to €1.9 billion.

Net income in the quarter jumped to €397 million from €256 million from a year ago six-month period and earnings per share advanced to €32.38 from €19.90.

The budget airliner said increase in revenues increase was driven by higher ticket prices and strong summer bookings.

Ryanair reaffirmed fiscal 2017 profit forecast in the range of €1.40 billion to €1.45 billion and lifted traffic estimate by one million customers to 131 million but warned that airfares in second-half may drop between 5% and 7%.

The airliner also added it may reduce fares by as much as 9% on some routes and forecasted traffic to grow 11% and checked bag revenue continues to steeply decline.

Reckitt Benckiser Group Plc dropped 2.6% to 7,675.34 pence after the U.K.-based consumer goods maker reported revenues in the first-half ending in June jumped 14% from a year ago to £5.02 billion.

Net income in the period declined 3% to £512 million from £528 million from a year ago six-month period and diluted earnings per share slumped to 71 pence from 73.4 pence.

The consumer products company warned sales are likely to remain sluggish as the management is still dealing with the crippling cyber attack a month ago.