Akzo Divest Chemical Unit to Carlyle, H&M Profit Declines on Weak Sales

Sarla Buch
27 Mar, 2018
New York City

Akzo Nobel sells its chemicals business to Carlyle for

[R]4:00 PM Frankfurt – Akzo Nobel sells its chemicals business to Carlyle for €10.1 billion. Hennes & Mauritz said profit declined after on unusually cold winter weather heavy discounting. Nordex said new orders in the year plunged 33%. Stroeer profit surged 48%.[/R]

In London trading, FTSE 100 index fell 29.97 or 0.4% to 6,892.97 and in Frankfurt the DAX index decreased 61.91 or 0.5% to 11,826.15.

In Paris, CAC 40 index slipped 21.32 or 0.4% to 5,073.89.

Akzo Nobel N.V jumped 2.8% to €77.18 after the Netherlands-based coatings, paints and specialty chemicals maker agreed to divest its specialty chemicals business to the U.S.-based private equity firm Carlyle Group and Singapore-based GIC for about €10.1 billion or $12.6 billion.

The transaction is expected to close before the end of this year.

Hennes & Mauritz AB plunged 6.5% to 119.10 Swedish kronor after Sweden-based fashion clothing retailer reported net sales in the first-quarter ending in February slumped 1.7% from a year ago to 46.2 billion kronor.

Net profit in the quarter plummeted 44.3% to 1.4 billion kronor from 2.5 billion kronor and diluted earnings per share dropped to 0.83 kronor from 1.48 kronor.

The retailer said high level of clearance sales combined with unusually cold winter weather had a negative impact on the sales of the spring season apparel.

The clothing retailer forecasted fiscal 2018 online and new business sales to jump more than 25% and “somewhat better” results from a year ago.

“The start of the year was tough. 2018 is a transitional year for the H&M group, as we accelerate our transformation,” said chief executive officer Karl-Johan Persson.

Nordex SE slumped 1.1% to €7.87 after Germany-based wind turbines manufacturer said revenues in the year ending in December declined 9.3% from a year ago to €3.1 billion.

Net profit in the period tumbled to €0.3 million from €95.4 million in a year ago period and diluted earnings per share plunged to break even from €1.03.

The wind turbines maker said new orders in the year plummeted 32.9% to €2.2 billion from €3.3 billion but installed capacity advanced 2.9% to 2.7 megawatts from 2.6 megawatts in the same period a year ago.

Stroeer SE & Co KGaA increased 0.4% to €55.20 after Germany-based online advertising and billboards services provider reported revenues in the year ending in December soared 18% from a year ago to €1.3 billion.

Net profit in the period surged 47.9% to €98.8 million from €66.8 million in a year ago period and diluted earnings per share jumped to €1.68 from €1.15.