Bilfinger Loss Narrowed, RWE Declares Special Dividend

Sarla Buch
14 Aug, 2017
New York City

Bilfinger net loss narrowed despite decline in revenues. Danone surged on merger speculation. Chinese automaker plans to bid for Fiat Chrysler. RWE declared special dividend. ThyssenKrupp may be nearing a deal with Tata Steel.

[R]4:00 PM Frankfurt – Bilfinger net loss narrowed despite decline in revenues. Danone surged on merger speculation. Chinese automaker plans to bid for Fiat Chrysler. RWE declared special dividend. ThyssenKrupp may be nearing a deal with Tata Steel.[/R]

In London trading, FTSE 100 index slumped 54.50 or 0.7% to 7,335.44 and in Frankfurt the DAX index edged up 7.91 to 12,022.09.

In Paris, CAC 40 index dropped 39.62 or 0.8% to 5,075.61.

Bilfinger SE rose 1.2% to €35.63 after Germany-based industrial services provider said revenues in the first-half ending in June declined 8.4% from a year ago to €1.9 billion.

Net loss in the period narrowed to €62 million from €134 million in a year ago six-month period and diluted loss per share decreased to €1.40 from €3.03.

The industrial services provider said orders received in the quarter dropped 4% to €988 million and order backlog plunged 6.7% to €2.5 billion from a year ago period.

Bilfinger reaffirmed fiscal 2017 orders received increase in the second-half but output is forecasted to increase in mid-to-high single digit percentage range and operating profit is estimated to break even from €15 million in a year ago.

Danone SA advanced 1.4% to €65.83 after New York Post reported France-based fresh and specialized dairy products maker is on target for consolidation and said that “it could be bought by a Kraft or a Coke and the French government would allow.”

Fiat Chrysler Automobiles NV jumped 4.6% to €10.27 after Automotive News said that a well-known Chinese car maker made at least one offer this month to buy the Italian- and U.S.-listed company but the offer was rejected for low price.

""In order to be fair to our shareholders, we need to make sure that we deliver as much value out of this venture as we can,"" said in a conference call of July, chief executive officer Sergio Marchionne.

RWE AG increased 1.6% to €19.13 after Germany-based electricity and natural gas distributor reported revenues in the first-half ending in June declined 2.2% from a year ago to €22.2 billion.

Net income in the period surged to €2.7 billion from €457 million in a year ago six-month period and diluted earnings per share jumped to €4.34 from €0.74.

The energy group said the improvement was driven by significant financial results including segments and the nuclear fuel tax refund and operating profit jumped to €3.2 billion from a year earlier.

As of 30 June, group net debt declined by €1.2 billion to €21.5 billion from €22.7 billion in the December 2016.

“We used the first half of this year to further develop our company, in line with our strategy,” said chief executive officer Rolf Martin Schmitz.

ThyssenKrupp AG gained 1.9% to €26.18 after India-based Tata Steel Ltd received regulatory approval to a deal to reduce its U.K. pension scheme liabilities.

Tata Steel today signed an agreement to segregate its UK business from pension scheme that paves the way for possible merger between the U.K. and European steel producer.