Ireland

Irish central banker job glitch may be a blessing

11 June 2019

The government was thrilled to recruit a New Zealand Treasury official as its new governor. Now he faces an investigation about how he handled early accessing of budget information. If things go wrong, Ireland has a second chance to give Deputy Governor Sharon Donnery the job.

Ryanair left dependent on pricier sandwiches

20 May 2019

The budget carrier’s costs soared due to expensive fuel and the need to pay pilots more. Boss Michael O’Leary can’t do much about that, nor the price war Ryanair has flown into. The only way to get margins back up is to sell customers even more pricier in-flight stuff.

Experian has as much credit as it deserves

15 May 2019

The data goliath’s revenue benefited from a cyberattack on rival Equifax, healthy U.S. growth, and its Brazilian push. An economic downturn would reverse the tide and lower profit margins may be the price of boosting sales. Its valuation premium over peers is big enough already.

Irish import new thinking into ECB from Down Under

1 May 2019

Ireland has hired New Zealand’s treasury chief, Gabriel Makhlouf, as its new central bank boss. While not a rate-setter, he arrives from a country that added an employment target to its monetary authority’s inflation goal. And Dublin can brag it is attracting global talent.

Dublin’s office boom lacks residential support

5 April 2019

Commercial construction in Ireland is back at pre-crisis levels. Tech giants and banks seeking a post-Brexit perch are fuelling demand for office space. But with Ireland building fewer than 20,000 homes a year – half what is needed – workers will struggle for affordable housing.

Berry takes risky leaf out of Apollo playbook

8 March 2019

The U.S. packager has beaten the private equity group, its former owner, by snapping up UK peer RPC for $4.4 bln. It looks set to ape a private equity-style strategy of rolling up smaller rivals. But the deal comes with high debt, aggressive synergies, and limited due diligence.

Aon shows humble pie is a dish best eaten swiftly

6 March 2019

The insurance broker’s shares rebounded after it ditched its pursuit of Willis Towers Watson a day after admitting interest. As miner Barrick is finding, it’s awkward sticking with a deal investors distrust. Moving on early helps avoid permanent dents to credibility.

Ryanair CEO’s 100 mln euro bonus is within reach

15 February 2019

That’s how much Michael O’Leary stands to gain if he doubles the budget airline’s net profit or share price by 2024. Falling fares and strikes make the target look a stretch. But if Ryanair hits its 200 mln passenger goal while keeping costs down, the sky’s the limit for rewards.

Irish cement maker needs repairs over demolition

6 February 2019

Activist Cevian has taken a stake in $25 bln building-products group CRH. A spinoff of the undervalued U.S. business might unlock value but would leave an awkward European rump. Its best hope for appeasing shareholders is to spruce up margins, and improve its governance.

New-look Ryanair follows familiar flight path

4 February 2019

The budget airline will split into four units overseen by CEO Michael O’Leary. The changes, including a replacement for Chairman David Bonderman, look encouraging. But given that O’Leary will remain in charge and large-scale acquisitions are unlikely, they are mostly cosmetic.

UK plastics challenge could crumple

31 January 2019

Berry Global may trump former owner Apollo’s 3.3 billion pound offer for British packaging firm RPC. But a bid would stretch the U.S. group’s balance sheet while finding cost savings won’t be easy. RPC investors hoping for a bidding war may be disappointed.

Ryanair will weather fare squeeze

18 January 2019

The low-cost carrier expects to make less post-tax profit this financial year than previously anticipated as CEO Michael O’Leary cuts fares to attract customers. That’s tough as he is having to pay staff more. But passenger numbers are growing fast enough for his bet to pay off.

Bankers should see Irish pay cap as an opportunity

29 October 2018

Ireland’s 500,000 euro salary limit for Allied Irish Bank’s CEO is why the incumbent just quit. But that still buys a lot of Dublin property, and need not deter global talent. Ambitious high-flyers should see the chance to cut their teeth on AIB as the path to a bigger CEO gig.

Ryanair wings recovery on consolidation prayer

22 October 2018

Strikes, lower fares and higher fuel costs lopped 7 pct off the budget airline's earnings in its busiest season. Ryanair's high margins and oil hedges are a buffer. But it's relying on less well-protected rivals stalling for its own performance to take off.

Losing reliability is biggest threat to Ryanair

1 October 2018

Europe’s largest budget airline cut its full-year profit forecast by 12 pct due to strikes and higher fuel costs. Less profitable rivals are facing similar headwinds. But Ryanair customers are unsure it will fly at critical times like Christmas. That’s a harder issue to fix.

Ryanair budget model is being eroded

23 July 2018

The carrier’s post-tax profit fell by a fifth due to strikes and a heatwave that encouraged people to holiday at home. But these one-off problems pose less of a challenge to CEO Michael O’Leary’s low-cost business than rising staff costs and the risk of a chaotic Brexit.

Bank of Ireland reset channels Celtic Tiger ghost

13 June 2018

The Irish lender plans to increase its loan book by a fifth and beat a 10 percent return on equity by 2021. A booming domestic economy helps, but the challenge will be avoiding past mistakes of chasing growth at the expense of asset quality. Small wonder investors are sceptical.

Smurfit Kappa loses a suitor, may gain an activist

6 June 2018

The Irish paper group irritated shareholders by stonewalling a 9 billion euro offer from International Paper. And it trades at a discount to rivals. Hitting ambitious targets would help close the gap, but an impatient investor could push for a breakup.

Smurfit Kappa’s aloofness looks justified, for now

24 May 2018

The Irish packager spent 460 mln euros on a Dutch mill after snubbing a bid from International Paper. That may bolster the case for staying solo, even if its obduracy is angering shareholders. But the U.S. group can afford to pay more, and make Smurfit’s cold shoulder untenable.

Barclays trolls activist with Irish mortgage foray

18 May 2018

The UK bank has bought a 4.3 bln pound book of Irish mortgages for 4 bln pounds. With fees from securitising the loans and investors lined up, the deal could make sense. But it sits awkwardly alongside new investor Edward Bramson’s strategy to prune the investment bank.