Nissan, Renault Merger Speculation Again, BayWa Rebounds on Turnaround

Sarla Buch
29 Mar, 2018
New York City

BayWa profit soared after diversified business and global expansion in renewable energy. Gelsenwasser profit plunged 15% but revenues soared 9%. Nemetschek surged on improved fiscal 2020 forecast. Renault and Nissan merger talk speculation resurfaces.

[R]4:00 PM Frankfurt – BayWa profit soared after diversified business and global expansion in renewable energy. Gelsenwasser profit plunged 15% but revenues soared 9%. Nemetschek surged on improved fiscal 2020 forecast. Renault and Nissan merger talk speculation resurfaces.[/R]

In London trading, FTSE 100 index gained 56.73 or 0.8% to 7,101.47 and in Frankfurt the DAX index jumped 168.91 or 1.4% to 12,111.44.

In Paris, CAC 40 index advanced 54.09 or 1.1% to 5,185.28.

BayWa AG gained 1.6% to €28.55 after Germany-based agriculture, building materials and energy wholesaler reported revenues in the year ending in December jumped 4.5% from a year ago to €16.1 billion.

Net income in the year soared 27.5% to €67.2 million from €52.7 million in a year ago period and diluted earnings per share declined to €1.13 from €1.90.

BayWa said gross profit in the year advanced 12.5% to €1.8 billion and operating profit surged 16.8% to €318.4 million from a year ago period.

Revenues in the agriculture segment fell 0.9% to €10.8 billion and revenues in the energy business surged 20% to €3.6 billion.

The BayWa said the group benefited from the diversified businesses, BAST unit managed to turn around business operations and growth was driven by global expansion in renewable energy business.

Gelsenwasser AG dropped 2.9% to €850 after Germany-based natural gas and fresh water supplier said revenues in the year ending in December soared 9.1% from a year ago to €1.2 billion.

Net income in the year plunged 15.4% to €92.4 million from €109.2 million in a year ago period and diluted earnings per share slumped to €2.69 from €3.18.

Nemetschek SE surged 11.5% to €91.60 after Germany-based architects, engineers and the construction software provider said revenues in the year ending in December surged 17.3% from a year ago to €395.6 million.

Net income in the year jumped 54.6% to €85.2 million from €55.1 million in a year ago period and diluted earnings per share advanced to €2.21 from €1.43.

Nemetschek forecasted fiscal 2020 revenue of about €600 million and operating profit margin in the range of 25% and 27%.

Renault SA jumped 5.9% to €98.57 on media report that France-based automobiles manufacturer and Japan-based Nissan Motor Co are in merger talks to create a new automaker under a single stock and to end the current alliance.

In cross-shareholdings since 1999, Renault owns 43% of Nissan while Nissan holds 15% stake in Renault.