Airbus, Deutsche Bank Profit Decline; Sainsbury to Acquire ASDA from Walmart

Sarla Buch
30 Apr, 2018
New York City

Accor is in preliminary merger talk with Switzerland-based Movenpick Hotels. Airbus profit plunged 31% on fewer deliveries. Deutsche Bank reported weak-than-expected results. Sainsbury profit declined 10% and the retailer agreed to acquire controlling interest in Asda.

[R]4:00 PM Frankfurt – Accor is in preliminary merger talk with Switzerland-based Movenpick Hotels. Airbus profit plunged 31% on fewer deliveries. Deutsche Bank reported weak-than-expected results. Sainsbury profit declined 10% and the retailer agreed to acquire controlling interest in Asda.[/R]

In London trading, FTSE 100 index edged up 5.95 to 7,508.16 and in Frankfurt the DAX index slid 9.47 to 12,571.40.

In Paris, CAC 40 index increased 12.37 or 0.2% to 5,496.18.

Accor SA jumped 2% to €46.88 after France-based multinational hotel group is in preliminary talk with Switzerland-based Movenpick Hotels & Resorts for about 560 million Swiss francs or £411.4 million.

The transaction is expects it to close in the second-half of 2018.

Airbus SE rose 0.3% to €97.17 after France-based civil and military aeronautical products maker reported revenues in the first-quarter ending in March declined 11.4% from a year ago to €10.1 billion.

Net profit in the quarter plunged 30.8% to €283 million from €409 million in a year ago period and diluted earnings per share slipped to €0.37 from €0.53.

In the quarter, Airbus delivered 121 commercial aircrafts from 136 aircrafts and delivery in helicopters business dropped to 52 units from 78 units in the same period a year ago.

However, Airbus received 45 net commercial aircraft orders and said backlog increased to 7,189 commercial aircraft.

The aircrafts maker forecasted fiscal 2018 total delivery of about 800 commercial aircraft.

Deutsche Bank AG dropped 1.1% to €11.32 after Germany-based investment and financial services provider reported revenues in the first-quarter ending in March plummeted 5% from a year ago to €7 billion.

Net profit in the quarter tumbled 79.1% to €120 million from €575 million in a year ago period and diluted earnings per share dropped to €0.6 from €0.34.

The bank said pretax profit in the quarter declined 50.8% to €432 million from €878 million in the same period a year ago.

The investment banker said decline in revenues was driven by lower revenues in the 13% slump in corporate and investment bank segment slumped to €3.8 billion.

J Sainsbury Plc surged 15.5% to 311.50 pence after the U.K.-based supermarkets and convenience stores operator said revenues in the first-quarter ending in March soared 9% from a year ago to £31.7 billion.

Net income in the quarter declined 10% to £309 million from £377 million in a year ago period and diluted loss per share slumped to 13.3 pence from 17.5 pence.

Separately today, Sainsbury announced the merger agreement with Asda Group Limited, a subsidiary of Walmart Inc valuing the group about £7.3 billion.

Walmart will not hold more than 29.9% voting rights in the combined business.