GAM Drops to 20-year Low on Record Loss; Metro, Tui Profit Soar

Sarla Buch
13 Dec, 2018
New York City

G4S plans to separate its cash and security business. GAM tumbled after the company was forced to write down assets linked to fraud. Metro profit jumped but revenues fell. Tui profit surged but pre-tax profit declined 10%.

[R]4:00 PM Frankfurt – G4S plans to separate its cash and security business. GAM tumbled after the company was forced to write down assets linked to fraud. Metro profit jumped but revenues fell. Tui profit surged but pre-tax profit declined 10%.[/R]

In London trading, FTSE 100 index decreased 49.92 or 0.7% to 6,837.81 and in Frankfurt the DAX index slipped 85 or 0.8% to 10,840.02.

In Paris, CAC 40 index dropped 50.03 or 1% to 4,847.24.

G4S Plc declined 4.1% to 187.75 pence after the U.K.-based security services provider plans to separate its £1.2 billion per year cash business from its core business and establish the Secure Solutions and the Global Cash Solutions divisions on January 1, 2019.

The government contractor said it is looking to split its two principle units of cash and secure solutions businesses or list the unit in a public offering in 2019.

GAM Holding AG tumbled 15.7% to 3 Swiss francs after Switzerland-based asset manager forecasted fiscal 2018 net loss of about 925 million francs or $931 million after the company tackles scandals.

The asset manager said it will suspend 2018 dividend.

GAM forecasted fiscal 2018 pretax profit of about 125 million francs compared to 172.5 million francs in the same period a year ago.

As of November 30, group assets under management declined to 139.1 billion francs from 146.1 billion francs as at September 30 and the company estimated goodwill impairment charge of about 885 million francs.

Metro AG dropped 1.4% to €11.72 after Germany-based diversified discount retailer reported revenues in the nine-month period ending in October fell 1.6% from a year ago to €36.5 billion.

Net profit in the period jumped 5.9% to €344 million from €325 million in a year ago period and diluted earnings per share jumped to €0.95 from €0.89.

The retailer said drop in revenues was driven by lower sales in Russia and negative currency development.

Metro forecasted fiscal 2019 overall sales between 1% and 3% and comparable sales to grow in the range of 1% and 3% and operating profit to decline in the range of 2% and 6% from €1.2 billion in the same period a year ago.

Compagnie Plastic Omnium SA plunged 8.3% to €18.91 after the plastic fuel & emissions control system maker forecasted fiscal 2018 revenues growth of 10% to €8.9 billion operating profit to jump compared to €615 million in a year ago period.

Tui AG slumped 3.1% to €12.83 after Germany-based travel and tourism services provider said revenues in the nine-month period ending in September jumped 5.3% from a year ago to €19.5 billion.

Net profit in the period surged 13.6% to €732 million from €645 million in a year ago period and diluted earnings per share jumped to €0.95 from €0.89.

Tui said pre-tax profit declined 10% to €972 million from a year ago period.

The travel services provider forecasted fiscal 2019 operating profit growth of 10%.