Deutsche Bank to Eliminate 7,000 Jobs, Deutsche Telekom Net Soared

Sarla Buch
24 May, 2018
New York City

Swiss bakery products maker Aryzta tumbled after the company lowered its outlook and operating margins. Deutsche Bank plan to eliminate equities 7,000 jobs and lower its risk capital. Deutsche Telekom profit surged but revenues declined.

[R]4:00 PM Frankfurt – Swiss bakery products maker Aryzta tumbled after the company lowered its outlook and operating margins. Deutsche Bank plan to eliminate equities 7,000 jobs and lower its risk capital. Deutsche Telekom profit surged but revenues declined.[/R]

In London trading, FTSE 100 index decreased 64.55 or 0.8% to 7,723.21 and in Frankfurt the DAX index declined 146.98 or 1.2% to 12,826.16.

In Paris, CAC 40 index slumped 26.37 or 0.5% to 5,539.48.

Aryzta AG tumbled 23.8% to 15.82 Swiss francs after Switzerland-based bakery products maker said total group revenues in the nine-month period ending in April declined 9.8% from a year ago to 2.6 billion francs.

Sales decline was driven by currency volatility and the disposal of a business unit.

Revenues in Europe dropped 1.7% to 1.3 billion francs and revenues in North America plunged 18.9% to 1.1 billion francs.

The board of the bakery products maker had approved three-year restructuring plan, aimed at restoring financial flexibility and to deliver cumulative €200 million in cost savings over three years.

Aryzta lowered fiscal 2018 operating profit forecast to between 9% and 12%, lower than the earlier estimate as operating margins in the third-quarter are estimated to fall below management expectations.

Deutsche Bank AG declined 4.3% to €10.43 after Germany-based banking and financial services provider said that its plan to eliminate jobs in the equities division and reduce by at least 7,000 overall positions.

The bank intends to restructure charge of as much as €800 million or $935 million in the year and also plans to reduce the funds at risk.

Deutsche Telekom AG slumped 1.9% to €13.26 after Germany-based telecom services provider reported revenues in the first-quarter ending in March declined 3.9% from a year ago to €17.9 billion.

Net income in the quarter soared 56.5% to €1.3 billion from €809 million in a year ago period and diluted earnings per share jumped to €0.21 from €0.16.

The communication services provider plans to buy back as much as €1.5 billion of stock.