Air France KLM November Traffic Jumps, BASF Lowers Profit Outlook

Sarla Buch
10 Dec, 2018
New York City

Air France KLM said passenger count in November jumped 3.3%. AF AB agreed to acquire Finland-based rival Poyry Plc. BASF reduced its profit outlook. Interserve plunged 51%. Perstorp agreed to sell its adhesive division to the U.S.-based Ingevity Corp.

[R]4:00 PM Frankfurt – Air France KLM said passenger count in November jumped 3.3%. AF AB agreed to acquire Finland-based rival Poyry Plc. BASF reduced its profit outlook. Interserve plunged 51%. Perstorp agreed to sell its adhesive division to the U.S.-based Ingevity Corp.[/R]

In London trading, FTSE 100 index edged up 6.60 to 6,785.32 and in Frankfurt the DAX index dropped 68.90 or 0.6% to 10,720.

In Paris, CAC 40 index slumped 25.18 or 0.5% to 4,787.94.

Air France KLM gained 1.3% to €9.17 after the France-based airline said total passengers in November jumped 3.3% to 7.6 million and load factor rose 0.7% to 86.3% from 85.5%.

Revenue-kilometers soared 4.8% to 21.8 billion and capacity available seat-kilometers advanced 3.9% to 25.21 billion in the same month in a year ago.

AF AB plunged 5.8% to 169.40 Swedish kronor after Sweden-based engineering consultancy services provider agreed to acquire Finland-based smaller rival Poyry Plc for about €611 million or $695 million.

Poyry Plc share surged 45% to €10.15.

BASF SE declined 3.7% to €58.45 after Germany-based chemical producer forecasted fiscal 2018 operating profit to decline between 15%% and 20% from the earlier estimate of """"slightly decline"""" as record low water levels of the Rhine river and the U.S.-China trade tensions dampen demand and lift costs higher.

BASF said the low levels of water will reduce profits by about €200 million or $227.5 million in the fourth-quarter and weak prices for isocyanate, component used in foams leads lower-than-expected steam cracker margins.

Interserve Plc tumbled 51.2% to 12.54 pence after the U.K.-based government outsourcing services provider said its estimated total debt by the end of this year is likely to be more than £600 million but it was """"making good progress"""" on a recovery plan with the help of banks.

The outsourcing services provider is in talks with its lenders in converting a substantial part of the company''s debt into new equity.

However, the government said it supports the company''s long term recovery plan and the detailed plan is expected to be announce in the early next year.

Perstorp Holding AB, the Sweden-based privately held investor agreed to sell its adhesives, bio-plastics, coatings, elastomers and resins producer Capa caprolactone division to the U.S.-based specialty chemicals maker Ingevity Corporation in a cash transaction of about €590 million or $675 million.

The transaction is expected to close in the late first-quarter of 2019.