CropEnergies Struggles with Profitability, H&M Dropped 12% on Sales Weakness

Sarla Buch
15 Dec, 2017
New York City

CropEnergies lowered operating profit forecast after profit declined 33%. Hennes & Mauritz declined on weak sales and said it plans to close stores. SThree beat full-year profit estimate.

[R]4:00 PM Frankfurt – CropEnergies lowered operating profit forecast after profit declined 33%. Hennes & Mauritz declined on weak sales and said it plans to close stores. SThree beat full-year profit estimate.[/R]

In London trading, FTSE 100 index rose 19.65 or 0.2% to 7,467.71 and in Frankfurt the DAX index edged up 3.19 to 13,071.71.

In Paris, CAC 40 index fell 11.45 or 0.2% to 5,344.46.

For the week, FTSE 100 index increased 1%, the DAX index slipped 0.6% and the CAC 40 index dropped 1%.

CropEnergies AG plunged 10.5% to €7.62 after Germany-based bio-ethanol producer said revenues in the third-quarter ending in September increased 1.8% from a year ago €219 million but operating profit slumped 33% to €12 million.

The bio-ethanol producer lowered fiscal 2017 operating profit forecast to between €65 million and €85 million from the earlier estimate of €60 million and €90 million but reaffirmed annual revenues in the range of €880 million to €920 million.

H & M Hennes & Mauritz AB declined 12.7% to 174.80 Swedish kronor after Sweden-based apparel manufacturer and retailer reported excluding value added tax sales in the fourth-quarter ending in November dropped 4% from a year ago to 50.4 billion kronor.

However, sales in the fiscal 2017 jumped 4% to 231.7 billion kronor compared to the same period a year ago.

The fashion retailer is scheduled to release its fiscal 2017 result on January 31, 2018.

Old Mutual Plc slid 0.1% to 201.40 pence after Reuter said the U.K.-based life assurance’s chief executive officer Richard Buxton near to acquire Old Mutual Global Investors for about £550 million funded by private equity firm TA Associates.

Standard Life Aberdeen Plc gained 0.5% to 415.90 after the U.K.-based investment manager said, in its first result after consolidation with Aberdeen Asset Management, as of September 30 total assets under management slightly dropped to £646.2 billion from £647.6 billion in the same period a year ago.

SThree Plc traded at 356 pence after the U.K.-based recruiting services provider said gross profit in the year ending in November jumped 4% from a year ago to £287.6 million, mainly driven by strong performances in the U.S. and continental Europe energy market recruiting.

Gross profit in the contract business soared 10% to £203.4 million but gross profit in the permanent segment declined 8% to £84.2 million.