Bottomline

PARIS:

European planemaker Airbus said Thursday that net profits fell 17 percent to 1.5 billion euros ($1.8 billion) in the first half of the year due to problems with the engines for the new version of its top-selling A320 jet.

“The commercial aircraft environment remains healthy while the robust order backlog continues to support our production ramp-up plans. However, we are facing challenges due to ongoing engine issues,” Chief Executive Tom Enders said in a statement.

The company said its expects to “deliver more than 700 commercial aircraft which depends on engine manufacturers meeting commitments”. (AFP)

FRANKFURT AM MAIN:

Germany’s biggest lender Deutsche Bank said Thursday it had lifted profits in the second quarter, as it labours to return to healthy growth after years of business and legal woes.

Deutsche reported net profits attributable to shareholders of 447 million euros ($547.4 million) between April and June, up from just 18 million in the second quarter last year.

The bank was able to more than double its operating or underlying profit to 822 million euros, although revenues fell 10 percent compared with the same period in 2016 to 6.6 billion euros.

Revenues fell across Deutsche’s corporate and investment banking, private and commercial banking, and asset management divisions. (AFP)

LONDON:

Lloyds Banking Group on Thursday revealed an 11-percent fall in first-half net profits, in its first results since the bailed-out lender returned fully to the private sector.

LBG said profit after tax dropped to £1.6 billion ($2.1 billion, 1.8 billion euros) in the first six months of 2017 compared with the equivalent period one year earlier.

The bank was forced to set aside yet more substantial amounts of money to compensate customers mis-sold a controversial insurance product, it said in an earnings statement.

The bank said a further £700 million would be needed to compensate for payment protection insurance, bringing the total to more than £18 billion — far in excess of other British banks caught up in the long-running scandal. (AFP)

FRANKFURT, Germany:

Volkswagen’s profit more than doubled in the second quarter as the German carmaker benefited from a growing European economy and moved past one-time costs for its diesel emissions scandal in the US.

After-tax profit rose to 3.2 billion euros ($3.7 billion) from 1.2 billion in the same quarter a year earlier.

Last year’s result was burdened by 2.2 billion euros in costs from the diesel scandal. No such one-time charges were reported for this year’s quarter.

Despite the rise, the profit was short of the 3.3 billion euros foreseen by market analysts as compiled by financial information provider FactSet.

Sales for the group and all its brands, which include Volkswagen, Audi, SEAT, Skoda, Bentley and Lamborghini, rose 4.7 percent to 59.7 billion euros. (AP)

HELSINKI:

Nokia continued to be hit by a decline in its core networks sector in the second quarter with almost flat sales, and cautioned Thursday that a weakening in networks would be greater than previously expected.

The Finland-based networks company, however, managed to trim net loss in the period to 423 million euros ($493 million) from 667 million euros a year earlier. Sales in the quarter grew 1 percent from 2016 to 5.6 billion euros.

Networks sales fell 5 percent to 4.9 billion euros with an 8 percent decline in the broadband sector. (AP)

PARIS:

France’s economy minister has announced the nationalization of the country’s emblematic shipyard to ensure an Italian company does not take it over.

However, Economy Minister Bruno Le Maire said on Thursday that the decision is temporary, and negotiations with the Italian state-owned group Fincantieri will continue.

The unexpected decision to nationalize the Saint Nazaire shipyard is the first major foray into the industrial sector for President Emmanuel Macron, and runs counter to the free-market image of the French chief of state.

The Italians have rejected a proposal that would have given each side 50 percent, with operational control being held by Fincantieri. Paris wants to keep talking and the minister said the nationalization is aimed at buying time. He said he will go to Rome on Tuesday to negotiate. (AP)

BRUSSELS:

The European Commission has conditionally approved the sale by DuPont of part of its crop protection business to FMC Corp and DuPont’s acquisition of FMC’s health and nutrition business.

The deals cleared Thursday help DuPont meet Commission requirements for DuPont’s pending $62 billion merger with Dow Chemical.

The merger was announced in December 2015 and was initially expected to close in the first half of 2016. But it was delayed several times while US and foreign regulators reviewed it. (AP)

LONDON:

Shares in Anglo-Swedish drugmaker AstraZeneca plunged as much as 17 percent Thursday after a new lung cancer treatment proved less successful than the company had hoped.

Second-quarter revenue declined 10 percent to $5.05 billion as sales of the cholesterol drug Crestor fell 40 percent. Sales of the anti-depressant Seroquel XR dropped 58 percent.

Net income totaled $477 million compared with a loss of $3 million in the same quarter last year as AstraZeneca reined in costs and increased sales of cancer drugs. (AP)

LONDON:

European pay-TV giant Sky, on course for a takeover by 21st Century Fox despite British hurdles, announced Thursday slim profits on the soaring cost of screening English Premier League football.

Net profit rose 4.4 percent to £695 million ($914 million, 780 million euros) during its financial year to the end of June, compared with 2015/16, Sky said in an earnings statement.

Sky said its day-to-day operating profit was down £97 million after absorbing £629 million of costs to screen live matches featuring the likes of Manchester United, Liverpool and Chelsea.

“Total costs grew by five percent, significantly impacted by the one-time step up in the new three year Premier League contract,” Sky said. (AFP)