Rupee gains 4 paise against dollar in early trade
Weak domestic equity market and rising crude prices capped gains for the Indian currency
The rupee inched up 4 paise to 70.73 against the US dollar in early trade on Tuesday, following increased selling of the American currency by exporters and banks.
However, weak domestic equity market and rising crude prices capped gains for the rupee, forex dealers said.
At the interbank foreign exchange, the rupee opened weak at 70.80. The domestic currency, however, recovered some lost ground to trade at 70.73 in morning trade.
On Monday, the rupee closed at 70.77 against the US currency.
The BSE Sensex pared all gains to trade 41.28 points, or 0.10 per cent, lower at 40,260.68. Similarly, the broader NSE Nifty slipped 13.60 points, or 0.11 per cent, to 11,927.70.
Brent crude futures, the global oil benchmark, rose 0.06 per cent to $62.17 per barrel.
On a net basis, foreign portfolio investors (FPIs) sold shares worth ₹138.53 crore on Monday, provisional exchange data showed.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, surged 0.09 per cent to 97.59.
The 10-year government bond yield was at 6.48 per cent in morning trade.
Associated British Foods FY Pre-tax Profit Declines – Quick Facts
Associated British Foods plc (ASBFY.PK,ABF.L) reported Tuesday that its statutory profit before tax for the 52 weeks ended 14 September 2019 declined 8 percent to 1.17 billion pounds from 1.28 billion pounds last year. Basic earnings per share decreased 13 percent to 111.1 pence from 127.5 pence a year ago.
However, adjusted profit before tax for the period was 1.41 billion pounds, up 2 percent from 1.37 billion pounds last year. Adjusted earnings per share increased by 2 percent from last year to 137.5 pence.
Revenues for the year grew 2 percent to 15.82 billion pounds from 15.57 billion pounds a year ago. At constant currency also, revenue rose 2 percent from the prior year.
Looking ahead to the next year, the company said it expects progress, on both a reported and an IFRS 16 adjusted basis, in adjusted earnings per share for the group.
The company proposes to pay a final dividend of 34.3 pence per share on 10 January 2020 to shareholders on the company’s register of members at the close of business on 13 December 2019.
Together with the interim dividend of 12.05 pence paid on 5 July 2019, this will make a total of 46.35 pence for the year, an increase of 3 percent.
SAP to return an extra $1.7 billion to shareholders in 2020
SAP SE said late Monday that its supervisory board has authorized an extra 1.5 billion-euro ($1.7 billion) capital return to shareholders in 2020, citing the German software company’s strong financial performance and balance sheet.
The companySAP, +0.58%SAP, +0.83% is allowed to repurchase shares and issue a special dividend with the combined volume by Dec. 31 next year, it said.
“This enhanced capital return will be in addition to SAP’s regular dividend policy of distributing at least 40% of its IFRS profit after tax,” SAP said.
SAP said it would provide more details on its capital-allocation policy at a capital markets day on Nov. 12.
Adecco To Sell Soliant Health Unit To Olympus Partners For $612 Mln Cash
Adecco Group (AHEXY.PK,ADO.L) announced Tuesday that it has entered into a definitive agreement to sell its US healthcare staffing business, Soliant Health, to Olympus Partners for $612 million or 551 million euros in cash.
The provider of human resources solutions said the sale is part of its strategy to concentrate on globally scalable brands and digital solutions.
The transaction is subject to customary closing conditions and is expected to be completed by first quarter of 2020.
The divestment is expected to result in a gain on sale for the Adecco Group to be recognised upon closing. The company will provide an update on the use of proceeds with its fourth-quarter results in February 2020.
In the 12 months ended June 30, 2019, Soliant generated revenues of $344 million and EBITDA of approximately $54 million.
Alain Dehaze, CEO of the Adecco Group said, “Soliant is an excellent business but with limited scope to expand outside of the US market, which has unique healthcare market dynamics. In line with the Group strategy to focus on globally scalable brands and digital solutions, this divestment is an attractive way to unlock value for our shareholders.”
In the deal, J.P. Morgan Securities LLC acted as exclusive financial advisor to Adecco.
Telefonica backs 2019 view after net loss
Telefonica SA on Tuesday reported a third-quarter loss after booking more than a billion euros in restructuring costs but backed its guidance for the year and said it would stick to its dividend policy.
The Spanish telecommunications company TEF, +0.27% reported a quarterly net loss of 443 million euros ($494 million) compared with a profit of EUR1.14 billion in the same period last year.
Net profit took a EUR1.40 billion hit from restructuring costs, it said. Revenue in the quarter edged 1.7% higher to EUR11.90 billion.
Telefonica said operating income before depreciation and amortization fell to EUR2.75 billion from EUR4.04 billion.
Siemens Gamesa reports profit and revenue rise
Siemens Gamesa Renewable Energy SA SGRE, +1.66% said Tuesday that net profit and revenue rose for the fourth quarter of its fiscal year.
The Spanish turbine maker’s net profit increased to 52 million euros ($58.0 million), compared with EUR25 million for the same period last year.
Revenue for the quarter rose to EUR2.94 billion, compared with EUR2.62 billion a year earlier and analysts expectations of EUR3.03 billion, according to estimates compiled by FactSet.
The company met its revenue and adjusted earnings before interest and taxes margin targets for the fiscal year. It saw full-year revenue of EUR10.23 billion, reaching the lower end of the previously expected range of between EUR10 billion and EUR11 billion. The adjusted EBIT margin was 7.1%, also on the lower end of the forecasted range of 7%-8.5%.
For the next fiscal year, the company issued a revenue target of between EUR10.20 billion and EUR10.60 billion as well as an adjusted EBIT margin of 5.5%-7%.