Rio Tinto Returns Cash on Iron Ore Boom, Sanofi Net More Than Doubles

Sarla Buch
08 Feb, 2017
New York City

Maersk net swung to a loss but forecasted profit to improve to about $1 billion in fiscal 2017. Carlsberg net swung to profit. Rio Tinto plans to buy back shares up to $500 million. Sanofi net more than doubled. Vestas Wind net surged 41%.

[R]4:00 PM Frankfurt – Maersk net swung to a loss but forecasted profit to improve to about $1 billion in fiscal 2017. Carlsberg net swung to profit. Rio Tinto plans to buy back shares up to $500 million. Sanofi net more than doubled. Vestas Wind net surged 41%.[/R]

In London trading, FTSE 100 index slid 5.14 to 7,181.08 and in Frankfurt the DAX index edged up 4.12 to 11,553.56.

In Paris, CAC 40 index increased 19.67 or 0.4% to 4,774.14.

AP Moeller Maersk A/S declined 4.2% to 10,670 Danish kroner after Denmark-based container shipping operator said revenues in the year ending in December slumped 11.9% from a year ago to $35.5 billion.

Net in the year swung to a loss of $1.9 billion compared to profit of $791 million in the period a year ago and diluted loss per share swung to $93 from diluted earnings per share of $37.

The container shipping group said net loss was negatively impacted by impairments of $2.8 billion related to $1.4 billion in Maersk Drilling of $1.4 billion and $1.2 billion in Maersk Supply Service.

Maersk forecasted fiscal 2017 profit is expected to improve to about $1 billion as demand in sea container transportation is estimated to increase between 2% and 4%.

Carlsberg A/S dropped 3.4% to 609.50 Danish kroner after Denmark-based brewery operator reported net revenues in the year ending in December plunged 4.3% from a year ago to 62.6 billion kroner.

Net in the year swung to profit from a year ago to 4.5 billion kroner compared to a loss of 2.9 billion kroner and diluted earnings per share swung to 29.4 kroner from diluted loss per share of 19.2 kroner.

The group’s operating margin in the second-half slightly improved to 15.3% from 14.8%.

Hermes International SCA slipped 1.6% to €395.55 after France-based luxury products maker said revenues in the fourth-quarter jumped 7.6% from a year ago to €1.5 billion.

Sales in leather-goods and saddler soared 10.2% and sales in silk and textiles segment surged 11.3% and sales in perfumes business jumped 17% while sales in watches tumbled 10.6%.

Rio Tinto Plc gained 0.7% to 3,459 pence after the U.K.-listed integrated mining group reported revenues in the year ending in December dropped 2.9% from a year ago to $33.8 billion.

Net in the year swung to profit from a year ago to $4.6 billion compared to the loss of $866 million and diluted earnings per share swung to 255.3 cents from diluted loss per share of 47.5 cents.

As of December 2016, Rio Tinto said net debt dropped 30% to $9.59 billion from $13.78 billion in the same period a year ago as it generated strong operating cash flow of $8.5 billion and operating profit of $5.1 billion.

Rio Tinto added capital expenditure in the year declined 36% from a year ago to $3.01 billion.

Separately, the miner said its plans to return $3.6 billion to shareholders through share buyback of $500 million in fiscal 2017 and plans to pay a much higher dividend of $1.70 per share, equivalent to $3.1 billion, representing 70% of operating profit of 2016.

Sanofi SA increased 1.9% to €77.28 after France-based healthcare products maker said net sales in the fourth-quarter advanced 3.3% from a year ago to €8.9 billion.

Net profit in the quarter more than doubled to €790 million compared to €334 million and diluted earnings per share advanced to €0.62 from €0.26.

""""We are not in hurry for M&A,"""" chief executive officer Olivier Brandicourt reassured the investors after the drug maker lost bidding war for cancer drug maker Medivation.

Storebrand ASA soared 5.6% to 54.75 Norwegian Krone after the Norway-based insurer and financial services provider said total revenues in the fourth-quarter ending in December plummeted 16.9% from a year ago to 11.3 billion kroner.

Net profit in the quarter plunged 15.6% from a year ago to 676 million kroner compared to the 801 million kroner but earnings per share increased to 1.50 kroner from 1.38 kroner.

Vestas Wind Systems A/S increased 1.9% to 501.50 Danish kroner after Denmark-based wind power producer reported revenues in the year ending in December soared 22% from a year ago to €10.2 billion.

Net profit in the quarter surged 40.9% to €965 million compared to €685 million and diluted earnings per share increased to €4.4 from €3.1.

The wind power turbine producer said order intake in the year recorded 10,494 megawatts worth about €9.5 billion or $10.2 billion after the strong demand arise in the U.S. in December 2016.

Vestas forecasted revenues in fiscal 2017 between €9.25 billion and €10.2 billion and free cash flow of about €700 million and tax margin before special items between 12% and 14% compared to 13.9% in 2016.