Exchange sets IPO price
The nation’s main stock exchange yesterday said that its initial public offering (IPO), set to be held in Moscow later this month, would value the company at US$4 billion to US$4.6 billion. The Moscow Exchange — formed in a 2011 merger of the MICEX and RTS bourses — set its price range at 55 rubles to 61 rubles per share for the offering on Friday next week. The exchange said in a statement that it hoped to raise more than US$500 million from the offering so that it could boost the capitalization of its clearing subsidiary and improve its information-technology infrastructure. The combined MICEX-RTS exchange was valued at US$4.5 billion at the time of its merger.
Daewoo wins S Korea order
Daewoo Shipbuilding & Marine Engineering Co, the world’s third-largest shipbuilder by revenue, said it would supply South Korea with 10 wind-power turbines this year. Daewoo will supply the 2-megawatt capacity turbines to a joint venture with Korea East-West Power Co. The turbines will go to a wind-farm project in Younggwang, southwest of Seoul, the company said in a statement. The project will generate enough electricity to supply 13,000 households a year once it is completed in the third quarter, Daewoo said, without disclosing the project’s cost.
JAL net profit falls 3.7%
Japan Airlines (JAL), which made a comeback from bankruptcy, yesterday said its net profit fell 3.7 percent in the first three quarters of fiscal 2012, but the carrier shrugged off the impact from its grounded 787s and raised its full-year profit estimate. The ￥140.6 billion (US$1.52 billion) profit the company reported yesterday for April to December last year compared with ￥146 billion in the same period a year earlier. Revenues rose 3.6 percent to ￥942 billion, but operating costs rose by nearly 5 percent. For the full year to next month, JAL raised its profit forecast to ￥163 billion, from an earlier estimate of ￥140 billion.
Swatch profits rise 26%
The world’s biggest watch-making group Swatch yesterday said its net profit last year rose 26 percent to 1.6 billion Swiss francs (US$1.76 billion), beating market expectations. Swatch said “thanks to a high level of capacity utilization, innovative production methods and traditionally strong cost controls, operating profit increased to 1,984 million Swiss francs, a rise of 22.9 percent compared to 2011.” Earlier, Swatch had reported that sales last year rose 14 percent to SF8.1 billion francs. The watchmaker forecast long-term growth prospects of 5 to 10 percent per year for the Swiss watch industry.
Hannover sticks to forecasts
Hannover Re, the world’s third-biggest reinsurer, yesterday said it was sticking to its full-year forecasts despite a “considerably more competitive environment.” “In view of the satisfactory outcome of the treaty renewals on January 1, Hannover Re anticipates a good financial year in non-life reinsurance,” the group said in a statement. “All in all, the prospects on the underwriting side should be roughly comparable with those of 2012.” As previously announced, Hannover Re said it is pencilling in an increase of “around five percent” in total gross premium income for the current year, with premiums in non-life reinsurance growing by 3 to 5 percent and in life and health insurance by 5 to 7 percent.