Philips Profit Declines on Flat Revenue, Spire Healthcare Rejects Takeover Bid

Sarla Buch
23 Oct, 2017
New York City

CRH received Ash Grove approval for its $3.5 billion acquisition. Philips net plunged 15% on flat revenues. Pendragon tumbled on profit warning. Spire Healthcare rejected takeover offer from its major investor Mediclinic. Securitas reported better-than-expected results.

[R]4:00 PM Frankfurt – CRH received Ash Grove approval for its $3.5 billion acquisition. Philips net plunged 15% on flat revenues. Pendragon tumbled on profit warning. Spire Healthcare rejected takeover offer from its major investor Mediclinic. Securitas reported better-than-expected results.[/R]

In London trading, FTSE 100 index edged up 6.25 to 7,529.52 and in Frankfurt the DAX index rose 16.38 to 13,007.67.

In Paris, CAC 40 index advanced 28.28 or 0.5% to 5,400.66.

CRH Plc gained 1.7% to 2,839 pence after the U.K.-based building materials supplier said shareholders of the U.S.-based cement producer Ash Grove Cement Co approved the proposed $3.5 billion takeover deal.

The transaction is expected to close in late 2017 or early 2018.

Koninklijke Philips NV increased 1.5% to €35.92 after the Netherlands-based health technology provider reported sales in the third-quarter ending in September were nearly flat from a year ago at €4.1 billion.

Net income in the period plunged 14.9% to €315 million from €370 million in a year ago period and diluted earnings per share dropped to €0.33 from €0.40.

Philips said comparable sales growth was mainly driven by double-digit growth in China, Latin America and India.

Pendragon Plc tumbled 18.2% to 23.73 pence after the U.K.-based automobile dealer forecasted fiscal 2017 revenue growth of about 3.7% while profit to plunge 20.7% on weak demand for new cars and a sharp decline in used vehicle prices.

Spire Healthcare Group Plc surged 13.8% to 297.30 pence after the U.K.-based hospitals operator said that it had rejected preliminary takeover approach for 298.6 pence per share from South Africa-based privately held rival Mediclinic International Plc.

Mediclinic already owns 29.9% stake in Spire Healthcare

The current offer for the remaining stake consists of 150 pence in cash and 0.232 new shares that valued Spire for about £1.20 billion or $1.59 billion.

Securitas AB jumped 3.7% to 141.20 Swedish kronor after Sweden-based security solutions provider reported revenues in the nine-month period ending in September rose 6% from a year ago to 64.4 billion kronor.

Net income in the period declined 8% to 1.9 billion kronor from 2.1 billion in a year ago nine-month period and diluted earnings per share dropped to 5.32 kronor from 5.73 kronor.