Crestor Sales Drop Dampens AstraZeneca, Richemont Growth Anchored in China

Sarla Buch
18 May, 2018
New York City

AstraZeneca profit declined after Crestor sales decline in Europe and Japan affected results. Lloyds agreed to sell its Ireland-based residential mortgage business to Barclays for

[R]4:00 PM Frankfurt – AstraZeneca profit declined after Crestor sales decline in Europe and Japan affected results. Lloyds agreed to sell its Ireland-based residential mortgage business to Barclays for £4 billion. Richemont sales rose on the strength in Greater China and Korea.[/R]

In London trading, FTSE 100 index advanced 46.54 or 0.6% to 7,781.74 and in Frankfurt the DAX index jumped 102.19 or 0.8% to 13,098.28.

In Paris, CAC 40 index increased 38.15 or 0.7% to 5,605.69.

AstraZeneca Plc dropped 2.7% to 5,202 pence after the U.K.-based pharmaceutical and biopharmaceutical products maker reported total revenues in the first-quarter ending in March declined 4% from a year ago to $5.2 billion.

Net income in the quarter tumbled 36.7% to $340 million from $537 million in the same period a year ago and diluted earnings per share dropped to 27 cents from 42 cents.

The drug maker said strong performance in China and newer medicines across various therapies, offset by the decline in Crestor sales in Europe and Japan.

Lloyds Banking Group Plc fell 0.5% to 65.85 pence after the U.K.-based banking and financial services provider today agreed to sell its Ireland-based residential mortgage business to Barclays Bank Plc for about £4 billion in cash.

However, the bank said sale is a part of the strategy to reduce overall risk and the sale will generate a pre-tax loss on sale of about £110 million and will be reflected in the first-half results.

The transaction is expected to complete in the second-half of this year.

Compagnie Financiere Richemont SA declined 5.5% to 93.58 Swiss francs after Switzerland-based luxury goods maker reported sales in the year ending in March advanced 3% from a year ago to €10.9 billion.

Net profit in the quarter rose 1% to €1.22 billion from €1.21 billion in a year ago period and diluted earnings per share increased to €2.16 from €2.14.

The luxury jewelry and watches maker said improved sales was driven by strong retail performance in jewelry and watch sales and double digit growth in mainland China, Hong Kong, Korea and Macau.

Fresenius SE & Co KGaA rose 0.2% to €69.20 after Germany-based health care services provider said its remains on track to continue strong growth and reaffirmed fiscal 2018 sales growth forecast between 5% to 8% and net income growth in the range of 6% to 9%.

Fresenius said net income growth in the bio-similars business is estimated to jump between 10% and 13%.

Shareholders approved to increase dividend for the 25th consecutive time, an increase by 21% to €0.75 per share.