E ON Profit Drops on Weak Wind Volumes, Munich Re Reaffirms Outlook

Sarla Buch
09 May, 2017
New York City

Dialog Semiconductor profit plunged. E ON profit declined on weak sales in the U.K. business. GEA Group profit surged 61%. Munich Re reaffirmed outlook after profit soared 29%. Uniper lowered net debt by

[R]4:00 PM Frankfurt – Dialog Semiconductor profit plunged. E ON profit declined on weak sales in the U.K. business. GEA Group profit surged 61%. Munich Re reaffirmed outlook after profit soared 29%. Uniper lowered net debt by €1.2 billion.[/R]

In London trading, FTSE 100 index rose 40.15 or 0.5% to 7,341.07 and in Frankfurt the DAX index increased 70.92 or 0.6% to 12,764.93.

In Paris, CAC 40 index increased 14.27 or 0.3% to 5,397.27.

Dialog Semiconductor Plc fell 0.2% to €42.97 after the U.K.-focused mixed and integrated circuits maker said revenues in the first-quarter ending in March jumped 12.3% from $271 million.

Net income in the quarter plunged 83.8% from a year ago to $23.1 million from $142.9 million and diluted earnings per share declined to 29 cents from $1.80.

The integrated circuits maker said revenues in the automotive and industrial business jumped 12% while revenues in the power conversion segment soared 22% while revenues in the connectivity business surged 29%.

E.ON SE traded unchanged at €7.13 after Germany-based electric utility service provider reported revenues in the first-quarter ending in March declined 7% from a year ago to €10.5 billion.

Net profit in the quarter tumbled 46% from a year ago to €628 million from €1.2 billion and diluted earnings per share slumped to €0.31 from €0.60.

E.ON said weaker sales in its U.K. segments hurt the result as well as lower wind volumes across its wind farms also impacted revenues.

During the quarter, the utility service provider issued 200 million new shares to raise capital to pay the net debt of about €1.6 billion.

GEA Group AG gained 0.7% to €39.26 after Germany-based food and energy services provider said revenues in the first-quarter ending in March jumped 6.7% from a year ago to €1.1 billion.

Profit in the quarter surged 61.3% from a year ago to €55.4 million from €34.3 million and diluted earnings per share advanced to €0.29 from €0.18.

The food and energy services provider said growth in profit was driven by small and mid-sized order and the regions of Western Europe, Middle East & Africa and Latin America while in the second-quarter it secured, order intake of about €1.12 billion.

Munich Re dropped 2% to €146.40 after Germany-based insurance services provider said gross premiums written in the first-quarter ending in March rose 3.3% from a year ago to €12.9 billion.

Profit in the quarter soared 28.7% from a year ago to €554 million from €430 million and diluted earnings per share increased to €3.55 from €2.65.

The insurer reaffirmed fiscal 2017 profit between €2 billion and €2.4 billion.

Uniper SE increased 1.8% to €16.51 after Germany-based energy producer and trader reported revenues in the first-quarter ending in March soared 13.7% from a year ago to €22.3 billion.

Profit in the quarter jumped 13% from a year ago to €733 million from €652 million and diluted earnings per share slumped to €0.31 from €0.60.

Uniper said positive development of operating cash flow was key factor in reducing net debt. As of March 31, net debt declined €1.2 billion to €3 billion from €4.2 billion in a year ago period.

""The first quarter of 2017 laid a good foundation for the rest of the year and for us to meet our forecast,"" said chief financial officer Christopher Delbrueck.

The company estimated operating profit in fiscal 2017 between €0.9 billion and €1.2 billion.