Airbus Opens New Facility in China, Rio Tinto Expands Share Repurchase Plan

Sarla Buch
22 Sep, 2017
New York City

Airbus unveiled new finishing center in Tianjin, China. Air Berlin is in advanced talks with Lufthansa and Easyjet. Rio Tinto increased its share repurchase program by $2.5 billion to $4 billion. Smiths Group beats profit estimate. Saga raised interim dividend.

[R]4:00 PM Frankfurt – Airbus unveiled new finishing center in Tianjin, China. Air Berlin is in advanced talks with Lufthansa and Easyjet. Rio Tinto increased its share repurchase program by $2.5 billion to $4 billion. Smiths Group beats profit estimate. Saga raised interim dividend.[/R]

In London trading, FTSE 100 index rose 17.17 or 0.3% to 7,282.07 and in Frankfurt the DAX index edged down 1.98 to 12,598.05.

In Paris, CAC 40 index increased 16.65 or 0.3% to 5,283.94.

For the week, FTSE 100 index increased 1%, the DAX index gained 0.6% and the CAC 40 index jumped 1.4%.

Airbus SE fell 0.1% to €77.47 after the Netherlands-based commercial jet aircraft maker inaugurated its first completion of wide-body aircraft finishing center for about €160 million in Tianjin, China, its first large aircraft facility outside Europe.

Air Berlin Plc surged 13.9% to €0.46 after Germany-based insolvent airliner is in active discussion to sell all or part of its operations to Deutsche Lufthansa AG and easyJet Plc.

Rio Tinto Plc edged up 0.1% to 3,468.50 pence after the U.K.-based global miner said it plans to buy-back $2.5 billion of additional shares, returning the proceeds of the sale of Coal & Allied to its shareholders.

After the today’s announcement total share buy-backs announced in fiscal 2017 increases to $4 billion.

Smiths Group Plc plunged 6% to 1,516 pence after the U.K.-based industrial conglomerates reported revenues in the year ending in July soared 11.2% from a year ago to £3.3 billion.

Net income in the period more than doubled to £564 million from £261 million in a year ago period and diluted earnings per share jumped to 140.3 pence from 64.9 pence.

The conglomerate said pretax profit in the year soared 74% to £601 million from the same period a year ago after growth in margin in all divisions and the company said Morpho Detection business integration is on track.

Saga Plc slid 0.2% to 196.38 pence after the U.K.-based travel and insurance services provider said revenues in the first-half ending in July fell 0.4% from a year ago to £435.4 million.

Net income in the period declined 5.1% to £83.4 million from £87.9 million in a year ago six-month period and diluted earnings per share fell to 7.4 pence from 7.8 pence.

The travel and insurance services provider said pretax profit slumped 6% to £103 million, driven by weak pound and derivative loss, but the company raise interim dividend by 11% to 3 pence from 2.7 pence in the same period a year ago.