Akzo Nobel Warns on Higher Material Costs, SAP Cloud Revenues Soar

Sarla Buch
24 Apr, 2018
New York City

Akzo Nobel profit jumped but the chemical and paint maker issued warned of higher raw material costs. AMS tumbled on weak revenues forecast. Banco Santander reported disappointing quarterly results largely because of higher expenses in the U.K. SAP reported flat revenue.

[R]4:00 PM Frankfurt – Akzo Nobel profit jumped but the chemical and paint maker issued warned of higher raw material costs. AMS tumbled on weak revenues forecast. Banco Santander reported disappointing quarterly results largely because of higher expenses in the U.K. SAP reported flat revenue.[/R]

In London trading, FTSE 100 index edged up 1.09 to 7,399.61 and in Frankfurt the DAX index slumped 67.24 or 0.5% to 12,506.47.

In Paris, CAC 40 index fell 18.26 or 0.3% to 5,420.28.

Akzo Nobel NV dropped 2.6% to €76 after the Netherlands-based paints and coatings maker reported revenues in the first-quarter ending in March declined 8% from a year ago to €2.2 billion.

Net profit in the quarter jumped 5% to €253 million from €240 million in a year ago period and diluted earnings per share increased to €1 from €0.96.

The paints and chemicals maker warned of higher raw material costs and forex losses in fiscal 2018.

AMS AG tumbled 9.4% to 86.76 Swiss francs after Austria-based sensor solutions provider stated revenues in the first-quarter ending in March surged 147% from a year ago to $452.7 million.

Net in the quarter swung to profit $99.9 million from a loss of $19.9 million and diluted earnings per share swung to $1.25 from diluted loss share of 27 cents.

The sensors maker forecasted revenues in the second-quarter between $220 million and $250 million and negative operating margins of about 20% to 25% driven by weak production capacity in its Singapore unit.

Banco Santander, SA declined 3.4% to €5.38 after Spain-based banking and financial services provider said net interest income in the first-quarter ending in March fell 1.8% from a year ago to €8.5 billion.

Net profit in the quarter surged 33.2% to €2.1 billion from €1.5 billion in a year ago period and diluted earnings per share increased to €0.12 from €0.09.

The lender said operating profit in the quarter jumped 4.7% to €6.4 billion as interest income soared 11% after lending improved and higher deposits in developing countries but its U.K. division suffered with higher than expected costs.

SAP SE soared 4.1% to €90.78 after Germany-based enterprise software developer reported total revenues were flat from a year ago at €5.3 billion

Net profit in the quarter soared 33% to €708 million from €530 million in the same period a year ago and diluted earnings per share increased to €0.59 from €0.43.

SAP said new cloud bookings jumped 14% to €245 million and cloud subscriptions and support revenue soared 18% to €1.1 billion but software revenue declined 10% to €625 million while cloud and software revenue rose 1% to €4.4 billion.