Santander, Siemens and Volvo Profit Jump; H&M Net Suffers on Faltering Traffic

Sarla Buch
31 Jan, 2018
New York City

Banco Santander profit soared as European economy show signs of mild strengths. Ericsson reported higher than expected losses. H&M plunged on disappointed results. Siemens profit surged on strong sales and orders. Volvo offered positive market outlook.

[R]4:00 PM Frankfurt – Banco Santander profit soared as European economy show signs of mild strengths. Ericsson reported higher than expected losses. H&M plunged on disappointed results. Siemens profit surged on strong sales and orders. Volvo offered positive market outlook.[/R]

In London trading, FTSE 100 index fell 22.50 or 0.3% to 7,565.90 and in Frankfurt the DAX index slid 6.16 to 13,191.45.

In Paris, CAC 40 index edged up 4.89 to 5,478.66.

For the month, FTSE 100 index dropped 1.6%, the DAX index soared 2.1% and the CAC 40 index jumped 3.1%.

Banco Santander, S.A gained 0.3% to €5.95 after Spain-based retail and commercial banking services provider reported gross income in the year ending in December soared 10.3% from a year ago to €48.4 billion.

Net profit in the year jumped 6.7% to €6.6 billion from €6.2 billion in a year ago period and diluted earnings per share advanced to €0.403 from €0.399.

Capita Plc tumbled 43.5% to 196.40 pence after the U.K.-based outsourcing services provider said pre-tax profits before new contracts and restructuring costs is expected to be between £270 million and £300 million and the company suspend the annual dividend.

Telefonaktiebolaget LM Ericsson declined 7.9% to 51.30 Swedish kronor after Sweden-based telecom equipment maker reported net sales in the year ending in November jumped 9.6% from a year ago to 201.3 billion kronor.

Net in the year swung to a loss of 35.1 billion kronor from profit of 1.9 billion kronor in a year ago period and diluted loss per share swung to 10.61 kronor from diluted earnings per share of 0.52 kronor.

Ericsson said fiscal 2017 sales in comparable units and currency declined 10% and operating profit swung to a loss of 38.1 billion kronor.

The telecom equipment maker net loss in the year included write-down of assets of 14.5 billion kronor and operating loss was 19.8 billion kronor and gross margin declined 21% from 26.1% in a year ago period.

H & M Hennes & Mauritz AB plunged 9.4% to 141.20 Swedish kronor after Sweden-based apparel and fashion retailer reported total revenues in the year ending in November jumped 4% from a year ago to 231.7 billion kronor.

Net income in the year declined 12.9% to 16.2 billion kronor from 18.6 billion kronor in a year ago period and diluted earnings per share dropped to 9.78 kronor from 11.26 kronor.

H&M said sales in the fourth quarter were significantly below the company’s own expectations on hefty discounting and reduced store traffic.

Siemens AG increased 0.9% to €122.32 after Germany-based industrial conglomerate said revenues in the first-quarter ending in December rose 3% from a year ago to €19.8 billion.

Net profit in the quarter surged 12% to €2.2 billion from €1.9 billion in a year ago period and diluted earnings per share advanced to €2.64 from €2.37.

Volvo AB advanced 1.1% to 163.20 Swedish kronor after Sweden-based trucks, buses and construction equipment maker reported net sales in the year ending in November soared 10.9% from a year ago to 334.7 billion kronor.

Net income in the year jumped 61.4% to 21.3 billion kronor from 13.2 billion kronor in a year ago period and diluted earnings per share increased to 10.32 kronor from 6.47 kronor.

Volvo said operating profit in the year surged 9.1% to 30.3 billion kronor from 20.8 billion kronor in a year ago period.