Rolls-Royce Shares Fall on Slower Recovery Concerns

0848 GMT - Rolls-Royce shares fall 3.2% after releasing a trading update. While things are moving in the right direction, the engine-maker is still set to fall short of its 2021 target for large engine flying hours, Michael Hewson at CMC Markets says. This isn't surprising given what has been happening with the Delta coronavirus variant in Europe and latterly Omicron, and international travel is likely to remain a headwind heading into next year, he says. Rolls-Royce returned to positive free cash flow in 3Q, but the company still has some way to go to reach its 2022 free cash flow target of GBP750 million, and much of this will depend on when and if international travel returns to normal, Hewson says. (jaime.llinares@wsj.com)

 
Companies News: 

Rolls-Royce Returned to Positive Free Cash Flow in 3Q

Rolls-Royce Holdings PLC said Thursday that it restored positive free cash flow in the third quarter.

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Farfetch Snaps Up Resale Platform as Secondhand Luxury Keeps On Growing

Farfetch Ltd. has acquired luxury resale platform Luxclusif as the sector's interest in the second-hand market grows apace, marking the latest expansion at the British-Portuguese e-commerce firm.

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Frasers 1H Pretax Profit Rose Significantly; Sees FY Growth

Frasers Group PLC on Thursday reported a significant rise in pretax profit for the first half of fiscal 2022 and said that it expects to post a materially stronger adjusted pretax profit for the full year if there are no additional Covid-19 lockdowns in the U.K., particularly during Christmas.

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DS Smith 1H Pretax Profit, Revenue Rose; Increases Dividend

DS Smith PLC said Thursday that pretax profit and revenue rose for the first half of fiscal 2022 and that it has increased the interim dividend.

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ITV Studios Revenue Seen Recovering to 2019 Levels in 2022

ITV PLC said Thursday that total revenue for its ITV Studios unit should recover to 2019 levels in 2022.

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Harbour Energy Introduces $200 Mln Annual Dividend

Harbour Energy PLC said Thursday that it will introduce a $200 million annual dividend, as it expects to remain free cash flow positive every year in the medium term at current forward commodity prices.

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Hikma Signs Deal to Commercialize Gedeon Richter's Osteoporosis Treatment

Hikma Pharmaceuticals PLC said Thursday that it has signed a deal to commercialize Gedeon Richter PLC's denosumab in the U.S.

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Market Talk: 

Frasers 1H Came in Ahead of Views, But It Still Faces Headwinds

0833 GMT - Frasers's set of results for the first half of fiscal 2022 were better than expected, RBC Capital Markets says. The U.K. sports-fashion retailer's performance shows it is in a good position given the momentum in the core sports retail businesses and stronger-than-expected full-price sales, the Canadian bank adds. However, execution risk is higher than average for Frasers and it may be challenging to scale its luxury offer outside of regional U.K. cities, it says. At the same time, department stores continue to face structural pressures and a gradual loss of their range advantage to online players, RBC adds. "Finally Frasers continues to lag the sector on ESG practices, which is likely to constrain its appeal to investors," it notes. (sabela.ojea@wsj.com; @sabelaojeaguix)

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com

(END) Dow Jones Newswires

December 09, 2021 04:13 ET (09:13 GMT)

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