Bayer Lowered Outlook, Trinity Mirror Expects Lower Revenues

Sarla Buch
30 Jun, 2017
New York City

Bayer lowered fiscal profit outlook on rising inventories in Brazil. Delivery Hero raised more than

[R]4:00 PM Frankfurt – Bayer lowered profit fiscal outlook on rising inventories in Brazil. Delivery Hero raised more than €1 billion in German listing. Serco fell on weak revenue forecast. Roche agreed to acquire mySugr.[/R]

In London trading, FTSE 100 index edged up 3.63 to 7,325.37 and in Frankfurt the DAX index declined 156.25 or 1.2% to 12,491.57.

In Paris, CAC 40 index slid 7.81 or 0.2% to 5,146.54.

For the week, FTSE 100 index fell 1.3%, the DAX index plummeted 2.9% and the CAC 40 index slumped 2.1%.

For the month, FTSE 100 index dropped 2.7%, the DAX index dropped 1.9% and the CAC 40 index declined 3%.

Bayer AG dropped 3.5% to €114 after Germany-based health care and agriculture products maker forecasted operating profit in fiscal 2017 between €300 million and €400 million on unexpected high inventories at its operations in Brazil in crop protection products.

The company said its pharmaceuticals division and Covestro unit continue to perform strong and the animal health business is in line with expectations.

Delivery Hero AG, the Germany-based privately held online food delivery services provider priced its public offering on Frankfurt Stock Exchange at €25.50 per share and raised more than €1 billion.

Hornbach-Baumarkt-AG jumped 2.6% to €31.64 after Germany-based do-it-yourself stores operator reported net sales in the first-quarter ending in May soared 7.1% from a year ago to €1.2 billion.

Comparable sales in the quarter increased 5.4%.

Profit in the quarter surged 21.2% from a year ago to €92.7 million from €76.5 million and earnings per share increased to €3.18 from €2.56.

Net sales at the 98 Hornbach stores advanced 3.6 % to €613.4 million and sales in the other European countries, including the retailer’s DIY activities in eight countries outside of Germany surged 10.7 % to €516.9 million.

Roche Holding Ltd slipped 0.8% to 245 Swiss francs after Switzerland-based healthcare products maker agreed to acquire Germany-based mySugr GmbH for undisclosed financial terms.

Roche said the acquisition allows the company to expand the position in the area of diabetes management and app-based digital health services for people suffering from the metabolic disorder.

Serco Group Plc slumped 2.5% to 115.40 pence after the U.K.-based diversified public services provider forecasted revenues in the first-half ending in June were about flat at £1.5 billion and pretax profit of about £35 million.

In fiscal 2017, Serco reaffirmed revenues estimate of £3.1 billion and operating profit between £65 million and £70 million.

Stockmann Oyj gained 0.9% to €7.50 after Finland-based department store and fashion chain today signed an agreement to sale of its grocery business Stockmann Delicatessen to domestic food retailer S Group’s regional cooperatives for about €27 million or $30.85 million.

The transaction is expected to complete in December 2017.

Trinity Mirror Plc jumped 6.1% to 100.75 pence after the U.K.-based newspapers publisher forecasted revenues in the first-half ending in July to decline 9% after publishing revenue estimated to plunge 10%; revenues in print segment to plummet 12% that offset by digital business revenues which to grew by 5%.

The board of directors said that our interim and full year results will be in line with our expectations.

The print media company said during the period it had already secured five-year print and distribution contract from Guardian and Observer newspapers commencing from early 2018.