Weekly Surge of 7% in DAX, Ericsson Plunges 9% on China Worries

Nigel Thomas
23 Oct, 2015
New York City

Ericsson plunged as much as 9% on revenues slowdown in China. Grammer agreed to acquire privately held Reum group. Michelin revenues soared 8.7%. Kering third-quarter sales soared 12%. Vinci revenues in the quarter increased 3%.

[R]4:00 PM Frankfurt – Ericsson plunged as much as 9% on revenues slowdown in China. Grammer agreed to acquire privately held Reum group. Michelin revenues soared 8.7%. Kering third-quarter sales soared 12%. Vinci revenues in the quarter increased 3%.[/R]

In London trading, FTSE 100 index increased 74.25 or 1.2% to 6,385.15 and in Frankfurt the DAX index surged 341.59 or 3.3% to 10,835.86.

In Paris, CAC 40 index jumped 129.02 or 2.7% to 4,931.20.

For the week, FTSE 100 index increased 1.1% and the DAX index surged 7.2% and the CAC 40 index soared 4.9%.

Ericsson plunged 5.5% to 77.35 Swedish kronor after the wireless communication equipment maker reported net sales in the third-quarter ending in September increased 3% from a year ago to 59.2 billion kronor.

Net income in the quarter surged 19% from a year ago to 3.1 billion kronors compared to 2.6 billion kronor and diluted earnings per share rose to 0.94 kronor from 0.81 kronor.

The company said sales growth remained strong in India, South East Asia and Oceania while sales declined in North East Asia and Northern Europe and Central Asia.

However, the mobile broadband business in North America fell from a year ago period and sales slowed down considerably in China as the rollout of 4G appears to have peaked in China.

Comparable network unit sales plunged 15% from a year ago quarter in all regions of the world except in India and South East Asia.

Total sales of 59.2 billion kronors were below expectations of 60.9 billion kronors and gross margins was 33.9%, lower than consensus estimate of 34.9%.

Grammer AG increased 2.2% to €23.61 after the Germany-based auto parts maker agreed to acquire privately held metal and plastics specialist Reum group from H.T.P. Investments B.V. and Palatium Beteiligungsgesellschaft UG as well as H.T.P. Automotive GmbH.

The financial terms of the transaction were not declared.

Cie Gnrl des Etblsmnts Michelin SCA jumped 3.4% to €90.12 after the France-based tire maker said total sales in the third-quarter ending in September soared 8.7% from a year ago to €5.31 billion.

The tire maker said passenger car and light truck tires net sales in the nine-month surged 13.8% to €8.84 billion from a year ago period.

Kering surged 10.2% to €172.10 after the France-based luxury goods distributor reported revenues in the third-quarter ending in September soared 12% to €2.90 billion after sales in Europe jumped 29% while revenues in Japan advanced 26%.

The company said sales in luxury activities surged 14% to €1.89 billion and Sport & Lifestyle activities increased to €1 billion from a year ago period.

Sales in Gucci segment increased 8.6% to €924 million and sales in Puma business jumped 8.3% to €918.2 million.

Vinci SA gained 2.5% to €10.18 after the France-based construction and engineering group said revenue in the third-quarter ending in September increased 2.8% from a year ago to €10.3 billion.

As of September, the company had total liquidity of €9.8 billion and €6 billion of unused credit facilities that due to expire in 2020 and net financial debt slid €0.8 billion from a year ago period to €13.2 billion.