Hexagon Discusses Merger with Rivals, Inditex Net Surges 18%

Sarla Buch
14 Jun, 2017
New York City

British American Tobacco plans to expand its vapor business as full-year cigarette volume is estimated to decline. Deutsche Boerse lifted profit estimate to increase as much as 15%. Hexagon surged on possible sale. Inditex profit jumped. WH Smith sales soared.

[R]4:00 PM Frankfurt – British American Tobacco plans to expand its vapor business as full-year cigarette volume is estimated to decline. Deutsche Boerse lifted profit estimate to increase as much as 15%. Hexagon surged on possible sale. Inditex profit jumped. WH Smith sales soared.[/R]

In London trading, FTSE 100 index rose 14.10 or 0.2% to 7,514.54 and in Frankfurt the DAX index increased 74.88 or 0.6% to 12,840.29.

In Paris, CAC 40 index edged up 2.09 to 5,263.83.

British American Tobacco Plc edged up 0.04% to 5,416.33 pence after the U.K.-based tobacco products maker said it plans to expand its vapor business after the consumption fell in its formal brands.

The tobacco products maker estimated full year sales volumes to decline 4% and operating profit of about 13% for the half year and 7% for the full year.

BAT said earnings per share in the first-half ending in June to surge 14% after weaker pound and revenue is estimated to jump from good pricing.

However, full-year volume is forecasted to decline 4% as phasing of shipments problems in a number of its key markets.

Deutsche Boerse AG gained 0.6% to €94.26 after Germany-based trading exchange operator forecasted revenues up to fiscal 2019 to jump between 5% and 10% and net income to increase between 10% and 15%.

Hexagon AB surged 12.9% to 426.70 Sweden kronor after Wall Street Journal reported measurement technology and software services provider is in preliminary merger talk to a rival based at U.S. or European that may value the company at about $20 billion.

Inditex SA, Industria de Diseno Textil SA slipped 1.2% to €35.42 after Spain-based fashion and home furnishings retailer said revenues in the first-quarter ending in April jumped 14% from a year ago to €5.6 billion.

Net profit in the quarter surged 18% from a year ago to €654 million from €554 million.

The retailer said in last twelve-months it had created 10,668 new jobs of which 2,242 are in Spain.

In the quarter, Inditex opened 93 new stores primarily for Zara and Stradivarius brands bringing its total to 7,385 stores compared to 7,085 a year ago.

During the current quarter, Zara launched online in Malaysia, Thailand, Singapore and Vietnam and opened a flagship store in May in India and opened several new Europe.

Zara owner Inditex forecasted revenues in the second-quarter ending on June 3 to increase 12%.

Telegraaf Media Groep NV dropped 2.1% to €6.32 after Reuter said the Netherlands-based tycoon had offered €300 million or $336 million for the media and publishing company.

WH Smith Plc jumped 2.9% to 1,796 pence after the U.K.-based book and magazine retailers said total group sales in the fifteen-months ending on June 10 increased 2% and comparable sales in the period were flat.

The retailer said total sales in the travel business soared 8% and comparable sales in the period advanced 5% but total sales and comparable sales in high street business declined 4%.