InBev Struggles in U.S. and Brazil; Societe Generale, Shell Net Jump

Sarla Buch
04 May, 2017
New York City

InBev profit jumped but said it is struggling in the U.S. and Brazil. HSBC profit declined after change in the fair value of debt. Societe Generale net plunged and agreed to pay

[R]4:00 PM Frankfurt – InBev profit jumped but said it is struggling in the U.S. and Brazil. HSBC profit declined after change in the fair value of debt. NEXT lowered full-year profit forecast. Societe Generale net plunged and agreed to pay €963 million to settle claims linked to bribery allegations in Libya. Shell profit surged. Veolia net jumped.[/R]

In London trading, FTSE 100 index edged up 6.87 to 7,241.47 and in Frankfurt the DAX index increased 87.70 or 0.7% to 12,616.07.

In Paris, CAC 40 index jumped 60.60 or 1.1% to 5,361.39.

Anheuser Busch Inbev NV held at €115.05 after the Belgium-based brewer said revenues in the first-quarter ending in March increased 3.7% from a year ago to $12.9 billion.

Net profit in the quarter surged from a year ago to $1.4 billion from €132 million and diluted earnings per share advanced 71 cents from 8 cents.

AB InBev said it continued to struggle in its two largest markets the U.S. and in Brazil where revenues declined after heavy state tax rates.

HSBC Holdings Plc jumped 2.6% to 662 pence after the U.K.-based global banking and financial services provider reported revenues in the first-quarter ending in March plunged 14.2% from a year ago to $6.8 billion.

Net income in the quarter declined 20.5% from a year ago to $3.1 billion from $3.9 billion and diluted earnings per share decreased to 16 cents from 20 cents.

Analysts were looking for $2.67 billion of profit in the quarter, and the global bank reported larger than expected profit.

The bank said profit declined mainly due to the changes in the accounting treatment on its debt and operating results of the Brazil business that was sold in July 2016.

""Our preference will always be to invest capital for future growth,"" he said. ""We will take a little pause, and consider what we see in the second quarter,"" in an interview said Finance Director Iain Mackay.

NEXT Plc declined 4.9% to 4,190 pence after the U.K.-based clothing, footwear, accessories and home products retailer lowered its full-year profit forecast between £680 million and £740 million from the earlier estimated range of £680 million to £780 million.

Societe Generale SA gained 0.3% to €51.57 after France-based financial services provider reported revenues in the first-quarter ending in March jumped 4.8% from a year ago to €6.5 billion.

Net profit in the quarter plunged 19.6% from a year ago to €747 million from €924 million and diluted earnings per share advanced €0.83 from €0.65.

The French banking leader said it agreed to pay €963 million or $1.1 billion to settle claims it paid alleged bribes to a middleman to secure business from Libya’s sovereign-wealth fund dating back to 2007.

Royal Dutch Shell Plc rose 0.2% to 2,022 pence after the U.K.-based oil and gas refiner reported revenues in the first-quarter ending in March soared 47.7% from a year ago to $71.8 billion.

Net profit in the quarter surged from a year ago to $3.5 billion from $484 million and diluted earnings per share jumped 43 cents from 7 cents.

The oil refiner said profit jumped mainly after years of cost-cutting and a fragile recovery in the oil prices of nearly 60% and refining margins from a year ago.

""We saw notable improvements in Upstream and Chemicals, which benefited from improved operational performance and better market conditions,"" said chief executive officer Ben van Beurden.

Veolia Environnement SA jumped 4.8% to €18.38 after France-based drinking water, wastewater and sanitation services provider said revenues in the first-quarter ending in March advanced 4.5% from a year ago to €6.3 billion.

Net profit in the quarter rose 4.8% from a year ago to €155 million from €173 million.

The water treatment services provider said as of March 31, net financial debt slightly increased by €164 million to €8.43 billion.

Separately, yesterday Veolia secured three energy services contracts for Chinese industrial customers to improve their energy performance, in compliance with the new environmental regulations in China.