Money Buzz! Europa

Category: Business

  • Arkema, sales at €2.1 billion, down 5.7% year on year, in Q1 2020

    Arkema, sales at €2.1 billion, down 5.7% year on year, in Q1 2020

    Arkema sales were at €2.1 billion, down 5.7% year on year, marked by the impact of Covid-19. EBITDA of €300 million, down 19% on first-quarter 2019, mainly impacted by the effects of Covid-19 which amounted to around €45 million.

    Adjusted net income of €100 million, representing €1.31 per share.

    Close-to-balance free cash flow, of negative €38 million, reflecting the seasonal increase in working capital.

    Net debt tightly controlled at €2,481 million (including €1 billion in hybrid bonds), up €150 million on 31 December 2019 (€2,331 million including hybrid bonds), of which over half relating to the acquisition of the Danish company LIP in adhesives.

    Liquidity levels at €1.5 billion at end-March, confirming the Group’s financial solidity.

    €100 million reduction in capital expenditure compared to the level originally planned for 2020, and fixed costs to decline by €50 million in 2020 versus 2019, to adapt to the Covid-19 context.

  • Total announces the first 2020 interim dividend of €0.66/share

    Total announces the first 2020 interim dividend of €0.66/share

    Total Board of Directors met on May 4, 2020, and declared the distribution of the 2020 first interim dividend at €0.66/share, stable compared to the 2019 first interim dividend.

    This interim dividend will be paid in cash exclusively according to the following timetable:

    In 2020ShareholdersADS holders
    Ex-dividend dateSeptember 25September 23
    Payment dateOctober 2October 16

    Furthermore, the Board of Directors decided on February 5, 2020, to propose to the Shareholders’ Meeting on May 29, 2020, the distribution of a 2019 final dividend of €0.68/share.

    The Board of Directors of May 4, 2020, decided to offer the shareholders, subject to approval at the Shareholders’ Meeting on May 29, 2020, the option to receive the 2019 final dividend in cash or in new shares of the Company with a discount, each choice being exclusive of the other.

  • Europcar secured 307€m new financing facilities to ensure liquidity

    Europcar secured 307€m new financing facilities to ensure liquidity

    • € 220m new term loan, 90% guaranteed by the French State;
    • € 67m new financing facilities, 70% guaranteed by the Spanish State;
    • € 20m Incremental RCF, guaranteed by Eurazeo through a risk sub-participation.

    Europcar completed a financing scheme, aiming at securing its liquidity to face the COVID-19 crisis and meeting anticipated fleet and corporate financing needs to swiftly restart operations.

    This includes a € 220m term loan, signed with the Group’s main French and international banks, benefiting from a 90% guarantee from the French State via Bpifrance (“Prêt Garanti par l’Etat”).

    This facility will have an initial maturity of 1 year, with an up to 5-year extension option decided by Europcar (up to May 2026), subject to customary mandatory repayment provisions. Differed amortization for 1 year with a contemplated progressive amortization thereafter.

    Condition: no dividend payments in 2020 and 2021 and subject to a x3 net corporate leverage thereafter.

    Financing facilities for the Europcar Spain

    New financing facilities for the Europcar Spanish subsidiaries (Europcar Spain and Goldcar Spain), totalling € 67.25m, signed over the last 2 weeks with Bankia and BBVA benefiting from a 70% guarantee from the Spanish State. These new facilities will have a 3-year maturity and proceeds are expected to fund both fleet & corporate needs.

    A € 20m Incremental RCF tranche (to increase the facility from € 650m to € 670m) – provided by French banks which have obtained a guarantee from Eurazeo through a sub-risk participation.

    All these new financing facilities, together with its existing financing framework, have been structured with regard to the current pandemic situation to allow Europcar to face the significant business impacts resulting from lockdowns and travel restrictions everywhere it operates, while allowing to progressively resume its activities post COVID-19 crisis.

  • Ryanair to operate less than 1% of its scheduled flying till June 2020

    Ryanair to operate less than 1% of its scheduled flying till June 2020

    • Due to Continent wide EU Government flight restrictions, Ryanair expects to operate less than 1% of its scheduled flying program in Apr, May & June 2020.
    • Q1 traffic of less than 150,000 passengers will be 99.5% behind the Q1 budget of 42.4m passengers.

    While some return to flight services is expected in the second (July-Sept) quarter, Ryanair expects to carry no more than 50% of its original traffic target of 44.6m in Q2.

    For the full year ended March 2021, Ryanair now expects to carry less than 100m passengers, more than 35% below its original 154m target.

    When scheduled flights return in Europe, sometime in July, Ryanair believes it will take some time for passenger volumes to return. Consumer confidence will be impacted by public health restrictions, such as temperature checks at airports and face coverings for passengers and staff on board aircraft.

    Ryanair expects traffic on reduced flight schedules will be stimulated by significant price discounting, and below cost selling from flag carriers with huge State Aid war chests (or nationalisation in the case of Alitalia).

    These lower fares will require aggressive airport price incentives to encourage passengers to travel, and Ryanair continues to call on EU Govts to cut passenger taxes, airport taxes, and departure taxes on an industry wide basis as a better alternative to selective State Aid “doping” for flag carriers.

    Fleet Review

    Ryanair is now reviewing its growth plans, and aircraft orders.

    They are in active negotiations with both Boeing, and Laudamotion’s A320 lessors to cut the number of planned aircraft deliveries over the next 24 months, which could reduce our capex commitments, to more accurately reflect a slower and more distorted EU air travel market in a post Covid-19 world.

    3,000 job cuts and pay cuts

    As a direct result of the unprecedented Covid-19 crisis, the grounding of all flights from mid-March until at least July, and the distorted State Aid landscape in Europe, Ryanair expects the recovery of passenger demand and pricing (to 2019 levels) will take at least 2 years, until summer 2022 at the earliest.

    The Ryanair Airlines will shortly notify their trade unions about its restructuring and job loss program, which will commence from July 2020.

    These plans will be subject to consultation but will affect all Ryanair Airlines, and may result in the loss of up to 3.000 mainly pilot and cabin crew jobs, unpaid leave, and pay cuts of up to 20%, and the closure of a number of aircraft bases across Europe until traffic recovers.

    Job cuts and pay cuts will also be extended to Head Office and Back Office teams. Group CEO Michael O’Leary, whose pay was cut by 50% for April and May, has now agreed to extend this 50% pay cut for the remainder of the financial year to March 2021.  

    Unprecedented volumes of State Aid from some EU Governments

    The competitive landscape in Europe will be distorted by unprecedented volumes of State Aid from some EU Governments to their “national” airlines.

    Currently this amounts to over €30 billion – in addition to payroll supports – mainly to the Lufthansa Group, Air France-KLM, Alitalia, SAS, and Norwegian. All this State Aid is in breach of EU rules, and will distort Europe’s level playing field in airline competition for many years.

    Ryanair will challenge these unlawful State Aid bailouts in the EU Courts to protect fair competition in Europe’s aviation market, which has done so much to lower fares for consumers over the last 20 years.

    Ryanair has repeatedly called for any State Aid to be transparent and non-discriminatory, such as payroll support schemes. This could, for example in Germany, have involved cutting departure taxes or reducing airport taxes in France, which would have benefited all airlines and passengers equally and not just favoured the local flag carrier.

    In France, the State is refunding aviation taxes but only to “French” airlines where all other EU airlines flying in France (such as Ryanair, EasyJet & BA) must still pay these taxes. This bailout discrimination is clearly in breach of State Aid and competition rules.

  • Autodoc, 165.5 million euros sales revenue in 2020 first quarter

    Autodoc, 165.5 million euros sales revenue in 2020 first quarter

    • Autodoc posted sales revenue of 165.5 million euros in the first quarter of 2020 (Q1 2019: 127.0 million euros).
    • This means a rise in turnover of 30% compared with the same period a year earlier.

    Over the first three months, the product range was expanded and new and innovative customer solutions were introduced. Both aspects continue to form the main components of the growth strategy that the company plans to implement consistently over 2020.

    The company’s long-term growth is based on the determined implementation of their growth strategy: This includes, first and foremost, the comprehensive product range of currently 2.5 million items.

    Autodoc Club and mobile app

    Autodoc thus offers its customers a comprehensive and growing range of car parts that everyone can afford. The associated services are being extended as well: Over the recent past these have included the launch of the “Autodoc Club” platform in the last quarter of 2019, along with the accompanying mobile app in February 2020.

    On this platform, Autodoc has bundled its digital services. At its core is a library of more than 2,500 video and PDF tutorials aimed at assisting customers with simple repairs to their own cars. The mobile app expands and complements the scope of functions on the online platform with a personal digital service logbook. Alongside the tutorials from the library, this includes, for example, the option of to track consumption of fuel and other consumables.

    For 2020 as a whole, Autodoc plans to continue its growth by means of innovation and further optimisation of operational processes.

  • Erste net fee and commission income rose 3.4% in the first quarter

    Erste net fee and commission income rose 3.4% in the first quarter

    Erste net interest income increased – mainly in the Czech Republic and Austria, but also in Romania – to EUR 1,229.0 million (+5.9%; EUR 1,160.9 million).

    Net fee and commission income rose to EUR 504.2 million (+3.4%; EUR 487.7 million), primarily on the back of increased fees from securities business but also from asset management and insurance brokerage.

    While net trading result declined significantly to EUR -157.4 million (EUR 153.3 million), the line item gains/losses from financial instruments measured at fair value through profit or loss was up at EUR 37.5 million (EUR -77.1 million), both line items being impacted by valuation effects due to increased market volatility amid the COVID-19 outbreak.

    Operating income decreased to EUR 1,633.0 million (-6.1%; EUR 1,771.7 million)

    General administrative expenses slightly declined to EUR 1,111.2 million (-0.4%; EUR 1115.6 million) as personnel expenses rose to EUR 630.0 million (+1.3%; EUR 621.9 million) while other administrative expenses came in lower at EUR 344.8 million (-3.8%; EUR 358.3 million).

    Other administrative expenses already included almost all payments into deposit insurance schemes expected in 2020 in the amount of EUR 88.3 million (EUR 87.5 million). Amortisation and depreciation amounted to EUR 136.5 million (EUR 135.4 million). Overall, the operating result declined to EUR 551.7 million (-15.9%; EUR 656.0 million). The cost/income ratio rose to 66.8% (63.0%).

    Other operating result amounted to EUR -127.6 million (EUR -131.1 million)

    The expenses for the annual contributions to resolution funds included in this line item rose – in particular in the Czech Republic and in Slovakia – to EUR 84.0 million (EUR 78.0 million).

    The rise in banking and transaction taxes to EUR 49.9 million (EUR 38.8 million) is primarily attributable to the doubling of banking levies in Slovakia to EUR 16.9 million (EUR 8.0 million) as the change in the law adopted in 2019 took effect as of 1 January 2020. Hungarian banking tax for the financial year 2020 amounted to EUR 14.2 million (EUR 12.5 million).

    Due to one-off effects in Romania, taxes on income increased to EUR 103.0 million (EUR 95.5 million). The minority charge declined to EUR 23.0 million (EUR 89.3 million) due to significantly lower earnings contributions of the savings banks. The net result attributable to owners of the parent amounted to EUR 235.3 million (-37.6%; EUR 377.0 million).

    Total assets rose to EUR 262.9 billion (EUR 245.7 billion). On the asset side, cash and cash balances increased to EUR 23.0 billion (EUR 10.7 billion), while loans and advances to credit institutions increased to EUR 24.3 billion (EUR 23.1 billion).

    Loans and advances to customers rose to EUR 161.1 billion (+0.5%; EUR 160.3 billion).

    On the liability side, deposits from banks increased to EUR 20.7 billion (EUR 13.1 billion) and customer deposits grew again – most notably in the Czech Republic and in Austria – to EUR 182.2 billion (+4.8%; EUR 173.8 billion). The loan-to-deposit ratio stood at 88.4% (92.2%).

  • Orange revenues were up 1%, year on year, in the 1st quarter

    Orange revenues were up 1%, year on year, in the 1st quarter

    Orange revenues were up 1.0%1 year on year in the 1st quarter, driven by solid growth in Africa and Middle East and improvement in the Enterprise, France and Europe segments.

    Revenues in Africa and Middle East grew by 6.2%, and in France by 0.5%, with a 2.2% increase in retail services excluding PSTN. Enterprise revenues grew by 0.8% and Europe by 0.3%. Spain revenues declined by 2.4%.

    This momentum occurred against the backdrop of the very beginning of the Covid crisis, which led to a decrease in equipment sales due to the closure of three quarters of Orange stores in European countries from mid-March and a decline in roaming revenues.

    Convergent offers totalled 10.8 million customers at March 31, 2020, up 3% year on year, confirming Orange in its position as Europe’s leading convergent operator.

    Fibre’s continued success resulted in 8.1 million very high-speed fixed broadband customers at March 31, 2020, up 20.7% year on year. In Europe, with 40.5 million households connectable to very high-speed broadband of which 39 million are FTTH lines, Orange remains the undisputed leader in fibre deployment.

    In France, Orange has become the French telecoms market leader in terms of customer experience measured by NPS (Net Promoter Score).

    In Africa and Middle East, the deployment of 4G continues, reaching 26.5 million customers, up 50.6% in the last 12 months.

    Orange Money remains a major growth driver for Orange’s operations in Africa and Middle East, and the service continued to be extended with the launch of the service in Morocco in March.

  • Daimler, 644.300 vehicles sold and €37,2 billion revenue in Q1 2020

    Daimler, 644.300 vehicles sold and €37,2 billion revenue in Q1 2020

    • Daimler sold 644,300 vehicles (Q1 2019: 773,800);
    • Revenue of €37.2 billion (Q1 2019: €39.7 billion);
    • Group net profit of €168 million (Q1 2019: €2,149 million);
    • Industrial net liquidity of €9.3 billion (end of 2019: €11.0 billion).

    Daimler AG total unit sales decreased by 17% to 644,300 passenger cars and commercial vehicles (Q1 2019: 773,800) due to the global spread of the coronavirus. Revenue slipped slightly by 6% to €37.2 billion (Q1 2019: €39.7 billion).

    First-quarter EBIT was €617 million (Q1 2019: €2,798 million). Adjusted EBIT, reflecting the underlying business, was €719 million (Q1 2019: €2,310 million).

    Daimler investments

    Daimler’s investments in property, plant and equipment in the first quarter totaled €1.6 billion (Q1 2019: €1.7 billion). Research and development expenditure amounted to €2.4 billion (Q1 2019: €2.4 billion).

    The free cash flow of the industrial business was minus €2.3 billion (Q1 2019: minus €2.0 billion) and was particularly influenced by the global effects of the pandemic. The adjusted free cash flow of the industrial business was minus €1.9 billion (Q1 2019: minus €2.0 billion), which is still influenced by high upfront investments in future products.

    Divisional results

    Sales by the Mercedes-Benz Cars & Vans division decreased by 16% to 546,700 vehicles in the first quarter (Q1 2019: 652.400). Revenue was €23.2 billion (Q1 2019: €24.1 billion).

    Sales by Mercedes-Benz Cars slipped by 15% to 470,600 vehicles in the first quarter (Q1 2019: 555.300). Mercedes-Benz Vans’ sales were down 22% to 76,200 vehicles (Q1 2019: 97,000).

    Daimler Trucks & Buses division showed a decrease in unit sales of 20% to 97,600 vehicles in the first quarter (Q1 2019: 121,400). Revenue was €8.7 billion (Q1 2019: €10.2 billion).

    Sales by Daimler Trucks fell by 20% to 92,500 vehicles in the first quarter (Q1 2019: 115,900). Daimler Buses sold 5,100 vehicles (Q1 2019: 5,500) – a decrease of 8%.

    At Daimler Mobility, new business decreased by 7% to €16.2 billion in the first quarter (Q1 2019: €17.3 billion). Contract volume was €159.6 billion at the end of the quarter (December 31, 2019: €162.8 billion). Revenue was €7.1 billion (Q1 2019: €6.9 billion).

  • AutoLiv: $1,846m net sales, 13% decline, in Q1 2020

    AutoLiv: $1,846m net sales, 13% decline, in Q1 2020

    AutoLiv published the Financial Report for January – March 2020. Financial highlights show an $1,846m net sales, 13% organic sales decline and an 7.3% operating margin.

    Organic sales decline was 11% better than global light vehicle production, with all regions outperforming LVP. Order intake share remained high and supportive of prolonged sales outperformance.

    Gross margin and adjusted operating margin were on similar levels as last year despite the global LVP decline, supported by no costs related to social unrest in Matamoros, Mexico, in 2020, cost reductions in R,D&E, S,G&A, production overhead and raw materials.

    Operating cash flow and free cash flow were above Q1 2019 levels.

    AutoLiv secured a strong liquidity position by drawing down on Revolving Credit Facility. Liquidity further supported by reducing or suspending non-critical expenses and investments and by cancelling the dividend after the quarter closed.

    Autoliv works in in automotive safety and sells to all major car manufacturers globally. The company has operations in 27 countries, including Poland, Hungary and Romania. 

  • UPS revenue increased to $18 billion in the first-quarter

    UPS revenue increased to $18 billion in the first-quarter

    • UPS announced first-quarter 2020 diluted earnings per share of $1.11 and adjusted diluted earnings per share of $1.15. 
    • The company’s results were adversely affected by the disruption to customers from the global coronavirus pandemic. 

    UPS has been designated by governments around the world as a Critical Infrastructure Business and continues to operate in all major countries, while adhering to additional regulatory requirements. 

    In the U.S., the company is also front and center in leading the pandemic logistics response for the Federal Emergency Management Agency (FEMA) and other federal and state government agencies. 

    How UPS performed in the first three months of 2020

    • Consolidated revenue increased to $18 billion, driven by growth in business-to-consumer shipments and gains in healthcare.
    • Net income was $965 million; adjusted net income was $1 billion. 
    • Net income included material headwinds due to disruptions from the coronavirus pandemic, higher self-insurance accruals and other items.
    • Adjusted capital expenditures were $939 million to support network enhancements.
    • Dividends per share increased 5.2%, with dividends remaining a high priority for the company.

    U.S. Domestic Segment

    • Revenue increased 9.3% and average daily volume was up 8.5%, with growth across all products.
    • Next Day Air average daily volume grew 20.5%, the fourth consecutive quarter of double-digit increases.
    • Revenue per piece decreased less than 1% due to changes in customer and product mix.
    • Commercial deliveries declined while residential deliveries were elevated.
    • Shipment growth in the quarter was driven by large customers.
    • On-time performance across all service levels was near a record high in a dynamic environment.

    International Segment

    • International average daily volume was down 1.8% with declines in commercial deliveries.
    • China volume primarily rebounded in March as its economic recovery accelerated, offsetting declines in January and February. Healthcare, high-tech and e-commerce sectors were positive contributors.
    • International cost per piece was down 0.5%, primarily due to the impact of currency. Additionally, the significant change in mix was partially offset by network adjustments to align capacity to changing trade patterns.
    • Operating margin was 16.3%; adjusted operating margin remained strong at 16.5%.

    At this time, UPS is unable to predict the extent of the business impact or the duration of the coronavirus pandemic, or reasonably estimate its operating performance in future quarters. 

    As a result, the company is withdrawing its previously issued 2020 revenue and diluted earnings per share growth guidance.

    The company expects 2020 capital expenditures will be reduced by approximately $1 billion from previous estimates and is suspending share buybacks for 2020, reducing its planned full-year repurchase target by approximately $783 million.

  • Public Power Corporation, increase in turnover by 4% in 2019

    Public Power Corporation, increase in turnover by 4% in 2019

    Public Power Corporation (PPC) adjusted pre – tax losses for 2019 amounted to € 424.4 m compared to adjusted pre – tax losses of € 347.3 m in 2018.

    It is noted that starting from Q4 2019, there has been a reversal of the trend, since it is the first quarter that fully incorporates the positive impact from measures taken, with recurring EBITDA amounting to €236.8 m compared to €44.7 m in Q4 2018.

    Adjusted pre-tax profits amounted to € 26.9 m. compared to pre-tax losses of € 131.6 m. last year.

    Public Power Corporation (PPC) EBITDA for 2019 was positively impacted by the rebate of € 99.3 m. from the surplus created in the Special Account for Renewables, by the reduction by € 243.4 m of the liability for post-retirement
    benefits, as well as by the settlement of a total amount of € 122.6 m for PSOs for previous years (collection of € 194.7 for the period 2007-2011 and negative impact by € 72.1 m. for 2017).

    Excluding abovementioned amounts, recurring EBITDA settles at € 333.6 m. For comparability reasons, EBITDA for 2018 is adjusted at € 403.8 m.

    The deterioration of recurring EBITDA for the full year is primarily attributed to higher expense for the purchase of CO2 emission rights driven by the significant increase of prices, which more than doubled, as well as to the negative impact on energy purchases cost by increased System Marginal Price.

    On the other hand, EBITDA was positively impacted by the partial recovery of the higher expense for the purchase of CO2 emission rights through the CO2 clause in Medium and High Voltage tariffs as well as the measures taken since August 2019 and the cost containment efforts of the company.

  • Aston Martin extends new cars warranties

    Aston Martin extends new cars warranties

    Aston Martin new car warranties extended, and service interval requirements relaxed to give peace of mind for customers.

    Aston Martin is working with its dealer network to help customers worldwide during the unprecedented lockdown conditions imposed to slow thespread of COVID-19.

    The brand will extend to 30 June 2020 all new-vehicle warranties that are due to expire, or have expired since 14 March 2020 or, in the case of China, since January 1st 2020. That is, broadly speaking, the period of lockdown in most countries where suchconditions exist.

    Aston Martin owners whose cars require a vehicle service during the disruption caused by COVID-19 are being assured that their warranty cover will be unaffected, and all cars serviced within three months or 2,000 miles (whichever is earlier) of the in-car service indicator will be protected in full by any applicable warranty.