Virgin Atlantic May Acquire Flybe, GEA Lowers Outlook

Sarla Buch
23 Nov, 2018
New York City

Ibstock divested the U.S.-based business and reaffirmed fiscal forecast. Flybe approaches Virgin Atlantic for a possible sale. GEA Group tumbled after the food processor lowered fiscal outlook. Rotork third-quarter revenues soared. Saint-Gobain sells its China business.

[R]4:00 PM Frankfurt – Ibstock divested the U.S.-based business and reaffirmed fiscal forecast. Flybe approaches Virgin Atlantic for a possible sale. GEA Group tumbled after the food processor lowered fiscal outlook. Rotork third-quarter revenues soared. Saint-Gobain sells its China business.[/R]

In London trading, FTSE 100 index decreased 27.85 or 0.4% to 6,932.47 and in Frankfurt the DAX index edged up 4.48 to 11,142.91.

In Paris, CAC 40 index edged down 4.06 to 4,935.23.

Ibstock Plc soared 8.6% to 237.60 pence after the U.K.-based clay bricks and concrete products manufacturer confirmed that it had divested the U.S.-based Glen-Gery business for £85.4 million or $110 million to Australia-based Brickworks Limited.

“This divestment augments our strong underlying cash flow generation, leaving us with a strong balance sheet,” said chief executive officer, Joe Hudson.

Ibstock reaffirmed fiscal 2018 operating profit forecast in the range of £121 million to £125 million.

Flybe Group Plc surged 85.9% to 18.40 pence after the U.K.-based budget airliner confirmed that it is in talks to sell to Virgin Atlantic Airways Limited.

The deal was first reported on November 14, 2018 after weak demand and higher fuel costs.

GEA Group AG tumbled 13.2% to €22.60 after Germany-based food processing technology provider lowered fiscal 2018 operating cash flow growth forecast to between 6.5% and 7% from the earlier estimate of 8.5% and working capital of about €900 million.

Rotork Plc fell 0.5% to 256.90 pence after the U.K.-based flow control equipment maker said revenues in the third-quarter ending on October 28 soared 8.4%.

As of October 28, total orders jumped 4% to £204.1 million from a year ago period.

Saint-Gobain S.A advanced 1.8% to €31.70 after the glass and construction material manufacturer confirmed that it sold its Xuzhou site of pipe manufacturing business in China for about €200 million.