Akzo Repeats Profit Warning, ASML Profit Surges 58%

Sarla Buch
18 Oct, 2017
New York City

Akzo Nobel reported lower-than-expected results and issued second profit warning. ASML profit surged on strong demand. Carrefour Brasil sales soared 8%. Haulotte said revenues in the nine-months jumped 8%.

[R]4:00 PM Frankfurt – Akzo Nobel reported lower-than-expected results and issued second profit warning. ASML profit surged on strong demand. Carrefour Brasil sales soared 8%. Haulotte said revenues in the nine-months jumped 8%.[/R]

In London trading, FTSE 100 index increased 33.62 or 0.4% to 7,549.64 and in Frankfurt the DAX index rose 63.85 or 0.5% to 13,058.77.

In Paris, CAC 40 index advanced 25.05 or 0.5% to 5,386.34.

Akzo Nobel N.V slipped 1.7% to €76.99 after the Netherlands-based paints and coatings maker said revenues in the nine-months ending in September rose 3% from a year ago to €11.1 billion.

Net income in the period declined 10% to €757 million from €837 million in a year ago nine-month period and diluted earnings per share fell to €3.01 from €3.34.

Akzo Nobel said decline in profit was impacted by headwinds for marine and protective coatings and unfavorable currencies as well as margin pressure from raw material cost inflation.

The paint maker forecasted fiscal 2017 operating profit in-line with 2016 results mainly due to ongoing industry specific headwinds and supply chain disruptions.

ASML Holding NV gained 0.5% to €149.20 after the Netherlands-based paints and chip maker said revenues in the nine-months ending on October 2 soared 33% from a year ago to €6.5 billion.

Net income in the period surged 58.3% to €1.5 billion from €947.7 million in a year ago nine-month period and diluted earnings per share jumped to €3.41 from €2.22.

The semiconductor equipment maker forecasted fourth-quarter net sales of about €2.1 billion and gross margin of about 44%.

Carrefour SA decreased 0.3% to €17.08 after France-based supermarkets and convenience stores retailer reported its sales in Brazil in the nine-months ending in September soared 8% from a year ago to $11.4 billion and same-store sales increased 3.6%.

Grupo Carrefour Brasil opened 15 new Cash and Carry stores, 53 convenience stores, 1 hypermarket, 2 gas stations, 1 drugstore and 1 wholesale operation.

DS Smith Plc jumped 4.5% to 493.50 pence after the U.K.-based corrugated packaging provider agreed to acquire Romania-based rival EcoPack and EcoPaper for about €208 million or $244 million.

The transaction is expected to close before the end of January 2018.

Haulotte Group SA plunged 8.4% to €15.62 after the France-based earth moving equipment maker said sales in the nine-months ending in September jumped 8% from a year ago to €370.7 billion driven by sales in Latin America advanced 4%.

The lifting equipment maker reaffirmed fiscal 2017 sales forecast of about 10% and operating profit of about 7.5%.