IAG, Exxon, Credit Suisse: Business news in brief on Friday April 29

British Airways owner IAG slows; Exxon Mobil quarterly earnings plunge 63%; Credit Suisse's Thiam signals tough year ahead

Zlata Rodionova
Friday 29 April 2016 16:21
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"We are building our platform for the future," Thiam told shareholders at its annual general meeting in Zurich
"We are building our platform for the future," Thiam told shareholders at its annual general meeting in Zurich

British Airways owner IAG slows growth plans after Brussels attacks

Brussels terror attacks have hit bookings in the current quarter, British Airways owner International Airlines Group said on Friday.

IAG reported pre-tax profits of €124 million (£96m) for the first quarter, compared with a loss of €37 million in 2015.

The carrier, which also reported softer demand for business travel, is trimming plans for growth as a result, though chief executive Willie Walsh said he expected the summer months to be stronger. Shares fell 4.8 per cent in afternoon trading in London to 524.7p, making it the biggest faller on the FTSE 100.

Exxon Mobil quarterly earnings plunge 63%

Exxon Mobil, the largest US oil company, has reported a 63 per cent plunge in earnings in the three months to the end of march to $1.8 billion from $4.9 billion on sharply lower oil prices and weaker refining margins.

It said these were only partly offset by strong results from its petrol chemicals division.

Restaurant Group shares dive 25%

Shares in Restaurant Group - the owner of Chiquito and Frankie & Benny's - dived almost 25 per cent after it cut its full-year profit forecast.

The FTSE firm, which also owns Garfunkel’s revealed that pre-tax profits for this year are now expected to be between £74 million and £80 million, down from £87 million last year, as it struggles to get new customers. Restaurant Group said Stephen Critoph, chief financial officer, was leaving with immediate effect.

Credit Suisse's Thiam signals tough year ahead amid overhaul

Tidjane Thiam, Credit Suisse chief executive, has asked investors for patience following a share slide amid a major restructuring.

Thiam told shareholders that the first quarter of 2016 has seen a continuation of some of the negative pressures experienced last year.

Shares were down more than 40 per cent since Thiam took charge at the bank in July. He said that while the wealth management business “remained strong” in the first quarter, restructuring efforts will continue to affect the bank’s performance this year.

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