Vedanta Ordered to Close Plant in India, Elior Net Drops

Sarla Buch
29 May, 2018
New York City

Dixons Carphone declined on profit warning. Elior Group slumped on weak outlook after profit tumbled 36%. Rocket Internet net swung to profit on strong revenue growth. Tamil Nadu state in India ordered Vedanta Resources to close its local copper smelter plant permanently.

[R]4:00 PM Frankfurt – Dixons Carphone declined on profit warning. Elior Group slumped on weak outlook after profit tumbled 36%. Rocket Internet net swung to profit on strong revenue growth. Tamil Nadu state in India ordered Vedanta Resources to close its local copper smelter plant permanently.[/R]

In London trading, FTSE 100 index declined 82.74 or 1.1% to 7,647.54 and in Frankfurt the DAX index slumped 140.13 or 1.1% to 12,723.33.

In Paris, CAC 40 index dropped 56.02 or 1% to 5,452.91.

Dixons Carphone Plc plunged 19% to 189.05 pence after the U.K.-based consumer electronics retailer forecasted profit in the year to decline 21% and the retailer plans to close 92 Carphone Warehouse standalone stores in the current year.

The electrical goods retailer lowered pre-tax profit forecast to about £300 million from the earlier estimate of £382 million, despite international business reporting 9% growth in Norway and 11% in Greece.

Elior Group SA slumped 2.5% to €14.53 after France-based foods and catering services provider reported total revenues in the first-half ending in March jumped 3.9% from a year ago to €3.3 billion.

Net profit in the period tumbled 36.2% to €37 million from €58 million in a year ago period and diluted earnings per share declined to €0.33 from €0.45.

Elior added revenues in the contract catering & services business advanced 4.9% to €2.6 billion and revenues in international segment soared 8.4% to €1.4 billion.

The catering services provider said during the second-quarter, the group had acquired a small business operating in the airport concession catering sector in Mexico.

The group forecasted fiscal 2018 revenue growth of 3% and operating margin growth between 7.5% and 7.8% but and adjusted earnings per share to decline.

Rocket Internet SE advanced 1.7% to €23.28 after Germany-based investor in online startups said group revenues in the first-quarter ending in March soared 17% from a year ago to €10 million.

Net in the quarter swung to profit €75 million from a loss of €86 million in a year ago period.

""In the first quarter of 2018, our selected companies continued to make progress towards profitability, while demonstrating sustainable growth"" said chief executive officer Oliver Samwer.

Vedanta Resources Plc fell 0.3% to 726.40 pence after the India-focused diversified metals and mining producer received an order from Tamil Nadu state in India to seal it''s Copper Smelter Plant 1 at Thoothukkudi District and close the plant permanently.