April 28, 2011 / 11:13 AM / 7 years ago

UPDATE 1-Deutsche Boerse raises cost savings outlook

* Sees 2011 operating costs 4 pct lower than anticipated

* 150 mln euros annual cost savings a year ahead of schedule

* Q1 EBIT 316.3 mln euros vs 290 mln in Reuters poll

(Adds CFO comment, detail, background)

FRANKFURT, April 28 (Reuters) - Exchange operator Deutsche Boerse (DB1Gn.DE) on Thursday raised its outlook for cost savings as first-quarter operating profit and sales beat expectations.

Earnings before interest and taxes (EBIT) came in at 316.3 million euros ($469.3 million), beating the most optimistic expectation of 308 million euros in a Reuters poll of 12 analysts.

“Our progress since we announced our efficiency measures in the first quarter of 2010 has exceeded expectations,” Chief Financial Officer Gregor Pottmeyer said in a statement.

Deutsche Boerse said it now sees 2011 operating costs at 890 million euros, 4 percent lower than it previously anticipated.

    Pottmeyer added he expected the company to achieve its planned 150 million euros in annual cost savings one year ahead of schedule.

    Deutsche Boerse didn’t say anything on its $9.8 billion offer for NYSE Euronext NYX.N, which has said it saw cost savings of the deal at closer to 400 million euros, up by about a third from its initial estimate.[ID:nN24131744]

    Nasdaq OMX Group Inc (NDAQ.O) and IntercontinentalExchange Inc (ICE.N) have launched a rival $11.2 billion takeover bid for NYSE Euronext. That deal promises net savings and benefits, or synergies, of $740 million.

    Last week, NYSE’s board rejected the bid for the second time in 11 days, and the company on Thursday renewed its call for investors to back Deutsche Boerse’s offer as it unveiled robust results. [ID:nLDE73Q1MP] (Reporting by Harro ten Wolde)

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