Rio Tinto Expands Buyback Plan, Societe Generale Profit Tumbled 21%

Sarla Buch
02 Aug, 2017
New York City

Asda reported eleventh consecutive quarterly loss in sales. BAE Systems revenues soared. Hugo Boss reaffirmed stable full-year outlook. Rio Tinto expanded share buyback plan. Societe Generale net tumbled on litigation cost.

[R]4:00 PM Frankfurt – Asda reported eleventh consecutive quarterly loss in sales. BAE Systems revenues soared. Hugo Boss reaffirmed stable full-year outlook. Rio Tinto expanded share buyback plan. Societe Generale net tumbled on litigation cost.[/R]

In London trading, FTSE 100 index slipped 23.57 or 0.3% to 7,400.13 and in Frankfurt the DAX index edged up 3.35 to 12,254.64.

In Paris, CAC 40 index rose 5.57 to 5,132.90.

Asda Group Limited, the U.K.-based privately held and the U.S.-based Walmart-owned grocery retailer chain operator said sales in the year ending in December dropped 3.2% from a year ago to £21.7 billion.

Comparable sales plummeted 5.7%.

The retailer reported pre-tax profits tumbled 19% from a year ago to £791.7 million.

The supermarket chain operator said comparable sales in the current first-quarter declined 2.8% from 2.9% in the same period a year ago and reported eleventh consecutive quarterly loss in sales.

BAE Systems Plc dropped 1.4% to 598.50 pence after the U.K.-based defense, aerospace and security products maker reported revenues in the first-half ending in June soared 10.3% from a year ago to £9.6 billion.

Net income in the period soared 36% to £555 million from £408 million in a year ago six-month period and diluted earnings per share rose to 17.4 pence from 12.8 pence.

The defense products maker said net debt in the period dropped 16.7% to £1.7 billion from £2.04 billion in the same period a year ago.

In June, £3.7 billion production contract for the initial batch of three Type 26 frigates with order booked of £2.8 billion in the period.

In fiscal 2017, BAE forecasted earnings per share to increase between 5% and 10% from 40.3 pence in 2016.

Hugo Boss AG soared 6% to €69.19 after Germany-based clothing and accessories retailer stated sales in the first-half ending in June were flat from a year ago to €1.3 billion.

Net income in the period jumped 113% to €105.6 million from €49.5 million in a year ago six-month period and diluted earnings per share soared to €1.53 from €0.72.

The fashion apparel retailer said profit increase is driven by sales growth in the U.S. for the first time in two years and sales edged up in Asia-Pacific but offset from its core market of Europe.

Hugo Boss reaffirmed stable full-year sales and earnings.

Rio Tinto Plc declined 2.4% to 3,419.74 pence after the U.K.-based the miner reported revenues in the first-half ending in June jumped 24.5% from a year ago to $19.3 billion.

Net income in the period surged 93% to $3.3 billion from $1.7 billion in a year ago six-month period and diluted earnings per share advanced to $1.83 from 94.9 cents.

Rio said despite capital expenditure in the period jumped 33% to $1.8 billion, net debt declined 21% to $7.6 billion from $9.6 billion in the same period a year ago and operating profit soared 68% to $9.04 billion.

The iron ore producer announced to buy back up to $1 billion this year today and said total cash return to shareholders is $3 billion.

Societe Generale SA plummeted 4.1% to €48.12 after France- based financial services provider said revenue in the first-half ending in June declined 9.8% from a year ago to €11.9 billion.

Net income in the period tumbled 20.8% to €1.9 billion from €2.4 billion in a year ago six-month period and diluted earnings per share dropped to €1.94 from €2.71.

The lender said profit decline was driven by litigation costs and low interest rates.

In the second-quarter, the bank agreed to pay €963 million to settle claims linked to bribery scandal in securing business from Libyan Investment Authority.