Ericsson Net Swings to Loss, Rio Tinto Lowered Iron Ore Outlook

Sarla Buch
18 Jul, 2017
New York City

British Land plans to buy back up to

[R]4:00 PM Frankfurt – British Land plans to buy back up to £300 million shares. Ericsson tumbled on weak outlook after net swung to a loss. IG Group net jumped on 8% increase in revenues. Novartis profit increased but revenues declined. Rio Tinto lowered iron ore shipments forecast.[/R]

In London trading, FTSE 100 index slid 8.24 to 7,395.89 and in Frankfurt the DAX index declined 185.64 or 1.5% to 12,401.

In Paris, CAC 40 index dropped 44.79 or 0.9% to 5,185.38.

British Land Company Plc advanced 2.8% to 621 pence after the U.K.-based real estate developer plans to buy back up to £300 million or $386.4 million shares during the current financial year.

Telefonaktiebolaget LM Ericsson tumbled 11.9% to 53.10 Swedish kronor after the Sweden-based telecom equipment maker reported net sales in the second-quarter declined 8% from a year ago to 49.9 billion kronor.

Net in the quarter swung to a loss of 1 billion kronor from profit of 1.6 billion kronor in a year ago period and diluted loss per share swung to 0.30 kronor from earnings per share of 0.48 kronor.

The telecom equipment maker said revenue decline was driven by weaker demand in Europe, Latin America and the Middle East and Africa and the company warned earnings could weaken further.

IG Group Holdings Plc surged 10.5% to 613 pence after the U.K.-based online stock brokerage and trading services provider said net revenues in the year ending in May soared 8% from a year ago to £491.1 million.

Net income in the year jumped 2.9% from a year ago to £169.2 million from £164.3 million and diluted earnings per share increased to 45.9 pence from 44.6 pence.

Novartis AG advanced 2% to 81.75 Swiss francs after Switzerland-based pharmaceuticals maker reported net sales in the second-quarter ending in June dropped 2% from a year ago to $12.2 billion.

Net income in the quarter surged 9.4% to from a year ago to $1.98 billion from $1.81 billion and diluted earnings per share rose to 83 cents from 75 cents.

The drugs-maker forecasted fiscal 2017 group net sales broadly in-line with the prior year and operating profit decline to match previous year decline in a low single digit.

Rio Tinto Plc slumped 2.1% to 3,400.50 pence after the U.K.-based mining and processing minerals producer said coking-coal production in the quarter declined 14% after cyclone Debbie on Hail.

However, thermal coal production in the quarter soared 15% and bauxite output jumped 7% to a record 12.87 million tons, copper output fell 6% to 124,700 tons and aluminum output slid 1% to 888,000 tons from a year ago period.

The miner lowered its fiscal 2017 iron ore shipments forecast to 330 million tons from the earlier estimate between 330 million tons to 340 million tons due to bad weather and rail track maintenance.