BMW, VW Offer Cautiously Positive Outlook; Asso British Foods Net Soars

Sarla Buch
07 Nov, 2017
New York City

Associated British Foods reported double-digit increase in profit and revenues. BMW net soared and the automaker lifted pretax profit forecast. Legrand lifted fiscal 2017 outlook. Porsche said Volkswagen rose. Veolia Environnement net and revenues increased.

[R]4:00 PM Frankfurt – Associated British Foods reported double-digit increase in profit and revenues. BMW net soared and the automaker lifted pretax profit forecast. Legrand lifted fiscal 2017 outlook. Porsche said Volkswagen rose. Veolia Environnement net and revenues increased.[/R]

In London trading, FTSE 100 index slipped 11.18 to 7,551.20 and in Frankfurt the DAX index slid 2.69 to 13,465.86.

In Paris, CAC 40 index fell 7.36 to 5,499.81.

Associated British Foods Plc declined 3.8% to 3,216 pence after the U.K.-based food, ingredient retailer reported revenues in the year ending in September soared 15% from a year ago to £15.4 billion.

Net profit in the year jumped 47.4% to £1.2 billion from £821 million in a year ago period and diluted earnings per share increased to 151.6 pence from 103.4 pence.

“This was highly successful year for the group. These results reflect our international diversity, and the strong underlying performance of our businesses,” said chief executive officer George Weston.

Bayerische Motoren Werke AG slumped 2.8% to €87.42 after Germany-based automobile and motorcycle maker reported revenues in the nine-month ending in September jumped 4.9% from a year ago to €72.7 billion.

Net profit in the period soared 13.2% to €6.1 billion from €5.4 billion in a year ago nine-month period and diluted earnings per share advanced to €9.28 from €8.20.

BMW said pretax profit in the period surged 9.6% to €8.5 billion and automobile deliveries jumped 3.7% to 1,811,234 units and worldwide total deliveries in namesake brand vehicles advanced 3.9% to 1,537,497 units from a year ago

BMW forecasted fiscal 2017 operating margin growth between 8% and 10%.

Legrand SA slipped 1.3% to €63.11 after France-based electrical installations and information networks provider reported revenues in the nine-month ending in September soared 7.7% from a year ago to €3.9 billion.

Net profit in the period surged 11.4% to €474.3 million from €425.6 million in a year ago nine-month period.

Legrand lifted fiscal 2017 revenues growth forecast to between 2% and 3% from the earlier estimate of zero to 3% and operating profit to jump in the range of 19.8% to 20.1% from the earlier estimate between 19.3% and 20.1%.

Porsche Automobil Holding SE increased 0.4% to €64.25 after Germany-based automobile manufacturer said the Volkswagen group revenue surged 6.8% from a year ago to €170.9 billion.

Group profit before tax increased €2.4 billion to €10.6 billion compared with the prior year, profit after tax grew by €1.8 billion to €7.7 billion from the prior year period.

Porsche said the Volkswagen group estimated fiscal 2017 deliveries to moderately exceed from the prior-year volume and revenue of the passenger cars business and commercial vehicles segment to grow by more than 4% and growth in the operating margin in the range of 6% to 7%.

Porsche reaffirmed fiscal 2017 group profit estimate between €2.1 billion and €3.1 billion and net liquidity of about €961 million.

Veolia Environnement SA gained 0.3% to €20.59 after France-based drinking and wastewater services provider said revenues in the nine-month ending in September advanced 3.4% from a year ago to €18.2 billion.

Net profit in the period jumped 3.3% to €392 million from €379 million in a year ago nine-month period.

Veolia said operating profit in the period increased 1.7% to €2.3 billion from a year ago period. However, domestic revenues were almost stable and global businesses revenue declined 1.3% while revenues in Europe soared 6.5%.