Lonza and SAP Results Support Slight Advance in European Markets

Sarla Buch
20 Jul, 2016
New York City

Johnson Matthey said group sales jumped 6%. Lonza reported record first-half results as profit soared 75%. Remy Cointreau said sales fell 2%. SAP profit surged 73% and lifted fiscal outlook. Talktalk declined after flat first-half revenues.

[R]4:00 PM Frankfurt – Johnson Matthey said group sales jumped 6%. Lonza reported record first-half results as profit soared 75%. Remy Cointreau said sales fell 2%. SAP profit surged 73% and lifted fiscal outlook. Talktalk declined after flat first-half revenues.[/R]

European markets struggled and volatile base metal and oil prices lifted resource stocks higher in the region.

Market indexes in Germany and Switzerland were supported by better than expected results from SAP Switzerland based specialty chemicals and science group.

In London trading, FTSE 100 index edged up 1.95 to 6,697.37 and in Frankfurt the DAX index fell 86.14 or 0.9% to 9,975.45.

In Paris, CAC 40 index dropped 30.35 or 0.7% to 4,325.90.

Johnson Matthey Plc edged up slightly to 3,148 pence after the U.K.-based specialty chemicals producer stated group sales in the first-quarter ending in June jumped 6% from a year ago to £822 million.

The chemical maker said sales in emission control technologies business soared 9% to £521 million and sales in light duty vehicle catalyst business surged 14% to £331 million while sales in heavy duty catalyst segment increased 1% to £190 million.

Johnson Matthey affirmed revenues in fiscal 2017 to be ahead of fiscal 2016.

Lonza Group AG jumped 5.3% to 178.30 Swiss francs after the Switzerland-based pharmaceutical, healthcare and life-science company said sales in the first-half ending in June advanced 6% from a year ago to 2.02 billion francs.

Net income in the period soared 74.8% from a year ago to 194 million francs compared to 111 francs and diluted earnings per share rose to 3.67 francs from 2.11 francs.

Lonza reported record first-half are likely to continue with strong momentum as the pharma, biotech and specialty ingredients business are expected to continue to improve their profitability.

The company lifted its core operating profit forecast in the year to a double-digit growth.

Remy Cointreau slipped 0.9% to €76 after the France-based wines and spirits producer stated sales in the first-quarter ending in June dropped 2.1% from a year ago to €218.6 million.

SAP SE soared 5.1% to €75.33 after the Germany-based analytical software developer reported total revenues in the second-quarter ending in June jumped 5% to €5.24 billion.

Profit in the quarter surged 73% from a year ago to €813 million compared to €469 million and diluted earnings per share increased to €0.68 from €0.39.

The software developer forecasted non-IFRS cloud subscriptions and support revenue in the fiscal 2016 in the range of €2.95 billion to €3.05 billion and cloud and software revenue to increase between 6% and 8% while operating profit in the range of €6.4 billion to €6.7 billion.

Talktalk Telecom Group Plc declined 3.4% to 215.30 after the U.K.-based fixed line broadband services provider said revenues in the first-half were flat despite strong growth in corporate revenue of 7.5% from a year ago period and healthy growth in revenue generating unit (RGU) penetration of 6.8%.

In the first-half, operating profit is expected to be between £107 million and £120 million.

The company reaffirmed full year revenues to grow modestly driven by stable broadband base and growth in TalkTalk Business unit and operating profit in the range of £320 million to £360 million.