Air Berlin Files for Insolvency, K&S Net Plunges

Sarla Buch
15 Aug, 2017
New York City

Air Berlin today filed for bankruptcy protection after Etihad withdrew its financial support. Hargreaves revenues jumped. K&S net plunged 30% and reaffirmed fiscal 2017 outlook. Mears net dropped 5% and lowered fiscal revenues forecast.

[R]4:00 PM Frankfurt – Air Berlin today filed for bankruptcy protection after Etihad withdrew its financial support. Hargreaves revenues jumped. K&S net plunged 30% and reaffirmed fiscal 2017 outlook. Mears net dropped 5% and lowered fiscal revenues forecast.[/R]

In London trading, FTSE 100 index slumped 54.50 or 0.7% to 7,335.44 and in Frankfurt the DAX index edged up 7.91 to 12,022.09.

In Paris, CAC 40 index dropped 39.62 or 0.8% to 5,075.61.

Air Berlin Plc tumbled 48.3% to €0.40 after Germany-based airline services provider today filed for bankruptcy protection after major shareholder Etihad Airways withdrew its financial support to the struggling discount airline.

However, the airline will continue to operate with the help of state loans as Lufthansa and other airliners plans for a partial rescue or buy parts of the rival. In recent months, German government offered a bridge loan of €150 million.

Hargreaves Lansdown Plc slipped 0.5% to 1,356 pence after the U.K.-based investment service provider reported net revenues in the year ending in June soared 15% from a year ago to £385.6 million.

Net income in the year surged 19.6% to £212 million from £177.3 million in a year ago period and diluted earnings per share jumped to 44.6 pence from 37.3 pence.

The investment manager said net new business in the year jumped 15% to £6.9 billion and added 118,000 new active clients, a growth of 14%, to 954,000 and assets under administration soared 28% to £79.2 billion.

K&S AG declined 4.7% to €20.80 after Germany-based salt producer and potash provider reported revenues in the first-half ending in June advanced 2.2% from a year ago to €1.9 billion.

Net income in the period plunged 30.3% to €140.5 million from €201.5 million in a year ago six-month period and diluted earnings per share slumped to €0.73 from €1.05.

Efficient wastewater management system help to improve substantially production but demand for de-icing salt was subdued after mild winter in North America.

K&S reaffirmed fiscal 2017, the potash and magnesium products business tangible increase in operating profit from a year ago but in the salt business, moderate increases in volumes and slight decrease in average prices, a tangible improvement in operating profit is expected.

The salt producer lifted fiscal 2017 revenues forecast to between €3.6 billion and €3.8 billion from €3.5 billion in fiscal 2016 and operating profit in the range of €560 million and €660 million compared to €519 million in a year ago period.

Mears Group Plc plunged 6.8% to 452.10 pence after the U.K.-based housing service provider reported net revenues in the first-half ending in June rose 1% from a year ago to £470.8 million.

Net income in the year dropped 4.5% to £10.7 million from £11.2 million in a year ago six-month period and diluted earnings per share fell to 9.86 pence from 9.97 pence.

The housing care support services provider lowered fiscal 2017 revenues forecast in its housing business to about £800 million from the previous estimate of £830 million after the tragic event at Grenfell Tower is likely to delay the work this year as landlords postpone new contracts and reviewed safety measures.

Paragon AG gained 1.5% to €65.29 after Germany-based electronic technology provider said revenues in the first-half ending in June advanced 13% from a year ago to €55.3 million.

Net income in the period soared to €1.6 million from €0.7 million in a year ago six-month period and diluted earnings per share jumped to €0.35 from €0.16.

The technology provider forecasted fiscal 2017 revenues in the range of €120 million to €125 million and operating profit between €10.8 million and €11.9 million.