GBL Unwinds Swaps; Gallienne, Lamarche to Join Management

Groupe Bruxelles Lambert SA, the Belgian investment firm controlled by billionaires Albert Frere and Paul Desmarais, reported profit dropped because of costs for unwinding derivatives and said Ian Gallienne and Gerard Lamarche will join the three-member executive management next year.

First-quarter net income declined to 11 million euros ($16 million) from 20.1 million euros a year earlier, the Brussels-based company said today in a statement. Cash earnings, the basis for GBL’s shareholder payouts, were a negative 23.3 million euros as GBL spent 16 million euros to unwind an interest-rate swap contract and didn’t receive any dividends.