Coca-Cola Buys Costa for

Sarla Buch
31 Aug, 2018
New York City

Scandinavian Airlines profit surged and lifted fiscal outlook. Sto profit declined 28% on negative currency effects. Total SA agreed to sell its China-based polystyrene business. Whitbread agreed to sell its coffee chain Costa to Coca-Cola.

[R]4:00 PM Frankfurt – Scandinavian Airlines profit surged and lifted fiscal outlook. Sto profit declined 28% on negative currency effects. Total SA agreed to sell its China-based polystyrene business. Whitbread agreed to sell its coffee chain Costa to Coca-Cola.[/R]

In London trading, FTSE 100 index decreased 36.37 or 0.5% to 7,479.56 and in Frankfurt the DAX index declined 106.67 or 0.9% to 12,385.15.

In Paris, CAC 40 index dropped 61.02 or 1.1% to 5,417.04.

Scandinavian Airlines System Aktiebolag, SAS AB surged 10.3% to 20.08 Swedish kronor after Sweden-based airline operator reported revenues in the nine-month period ending in July advanced 3.3% from a year ago to 32 billion kronor.

Net income in the period surged 44% to 949 million kronor from 659 million kronor in the same period a year ago and diluted earnings per share 2.09 kronor from 1.20 kronor.

The airline services provider lifted fiscal 2018 pretax profit forecast of about 2 billion kronor from the earlier estimate of 1.5 billion kronor to 2 billion kronor and jet fuel costs to increase between 9.5 billion kronor and 10 billion kronor.

Sto SE & Co KgaA dropped 2.7% to €97.20 after Germany-based building materials and coatings maker reported revenues in the first-half ending in June rose 1.1% from a year ago to €624.5 million but operating profit declined 27.5% to €23.2 million.

The coatings maker said decline in profit was driven by higher coast negative currency effects but domestic revenues jumped 3.4% to €275.8 million while outside Germany revenues fell 0.6% to €348.7 million from €350.7 million in a year ago period.

Sto forecasted fiscal 2018 revenues growth of 4.4% to €1.3 million and operating profit between €80 million and €90 million.

Total SA slumped 1.1% to €54.06 after France-based oil and gas producer agreed to sell its China-based polystyrene business to domestic styrenics supplier INEOS Styrolution, including production capacity of 200,000 tons per year, located in Ningbo, Zhejiang Province, and in Foshan, Guangdong Province.

Vonovia SE fell 0.6% to €44.41 after Germany-based residential property developer said rental income in the first-half ending in June rose 0.7% from a year ago to €838.8 million.

Net profit in the period soared 12.7% to €1.2 billion form €1.1 billion in the same period a year ago and diluted earnings per share jumped to €2.32 from €2.05.

The property developer forecasted fiscal 2018 rental income between €1.66 billion and €1.68 billion from €1.67 billion and rent growth in the range of 4.6% to 4.8% from 4.2% in the same period a year ago.

Whitbread Plc soared 16.7% to 4,693 pence after the U.K.-based hotel, coffee shop and restaurant operator agreed to sell its coffee chain Costa to the U.S.-based The Coca-Cola Co for £3.9 billion or $5.1 billion.