Capita Tumbles Profit Growth Worries, Lonmin Accepts South African Bid

Sarla Buch
14 Dec, 2017
New York City

Capita tumbled on subdued outsourcing market outlook. Dassault terminated Silvercrest engine contract with Safran. Innogy lowered fiscal 2017 and 2018 outlook. Lonmin agreed to be acquired by South Africa-based Sabanye for

[R]4:00 PM Frankfurt – Capita tumbled on subdued outsourcing market outlook. Dassault terminated Silvercrest engine contract with Safran. Innogy lowered fiscal 2017 and 2018 outlook. Lonmin agreed to be acquired by South Africa-based Sabanye for £285 million. Zodiac Aerospace sales declined.[/R]

In London trading, FTSE 100 index fell 13.64 or 0.2% to 7,482.87 and in Frankfurt the DAX index decreased 47.74 or 0.4% to 13,078.13.

In Paris, CAC 40 index slipped 16.26 or 0.3% to 5,383.18.

Capita Plc tumbled 12.3% to 408.42 after the U.K.-based business outsourcing services provider said the company has £2.5 billion of bids in pipeline, but the bids are unlikely to add to profit in 2018.

The outsourcing services provider said pre-tax profits before significant new contracts and restructuring is expected to rise modestly in the second-half of this year.

Dassault Aviation SA slipped 1.7% to €1,327.90 and France-based combat aircrafts maker said it intends to terminate Silvercrest engine contract for its Falcon 5X jet program and the company will launch a new Falcon program into service in 2022.

The plane maker said it decided to terminate after repeated difficulties in the Silvercrest engine developed by Safran SA and recurrent technical issues during the program development.

Innogy SE slumped 3.4% to €32.97 after Germany-based electricity and natural gas provider lowered its 2017 and 2018 operating forecast to €4.3 billion from the earlier estimate of €4.4 billion.

In fiscal 2018, Innogy forecasted adjusted operating profit of about €2.7 billion and net income is expected to be above €1.1 billion after difficult market environment in the U.K.

However, the deal is expected to complete in the fourth-quarter of 2018 or in the first-quarter of 2019.

Lonmin Plc surged 19.7% to 76.30 pence after the U.K.-based struggling platinum producer agreed to be acquired by South Africa-based miner Sabanye-Stillwater for about £285 million.

Zodiac Aerospace SA fell 0.2% to €24.77 after France-based aeronautical and aerospace equipment maker reported revenues in the first-quarter ending in November declined 10.4% from a year ago to €1.1 billion.

Revenues in the aircraft seat business plunged 22.7% to €236.9 million, in the aircraft cabin segment slumped 15% to €415.6 million, in aircraft interior activities dropped 18.3% to €590.4 million and in aerosystems division decreased 1.5% to €590.4 million.