H&M Net Declines, OSRAM Licht Tumbles on Lower Fiscal Outlook

Sarla Buch
28 Jun, 2018
New York City

Hennes & Mauritz reported weaker-than-expected quarterly earnings. John Wood declined on weak outlook. OSRAM Licht tumbled after the company lowered revenues and profit forecast. Sanofi agreed to sell its European generics business Zentiva for about

[R]4:00 PM Frankfurt – Hennes & Mauritz reported weaker-than-expected quarterly earnings. John Wood declined on weak outlook. OSRAM Licht tumbled after the company lowered revenues and profit forecast. Sanofi agreed to sell its European generics business Zentiva for about €1.9 billion.[/R]

In London trading, FTSE 100 index decreased 24.52 or 0.3% to 7,599.49 and in Frankfurt the DAX index plummeted 205.36 or 1.7% to 12,143.19.

In Paris, CAC 40 index declined 64.81 or 1.2% to 5,262.99.

Hennes & Mauritz AB gained 1.4% to 136.50 Sweden francs after Sweden-based fashion apparel retailer reported sales in the second-quarter ending in May advanced 1.2% from a year ago to 52 billion kronor.

Net income in the quarter plunged 21.4% to 4.6 billion kronor from 5.9 billion kronor in a year ago period and diluted earnings per share dropped to 2.80 kronor from 3.56 kronor.

The retailer said the company has cleared unsold stock of goods after logistical problems in the U.S.

John Wood Group Plc declined 3.1% to 642.40 pence after the U.K.-based engineering services provider forecasted revenue growth in the first-half ending in June in the range of $5.1 billion to $5.2 billion and pre-tax income in the range of $250 million to $260 million.

John Wood said as of June 30, net debt estimated to $1.7 billion, reflecting improved operational cash generation.

However, the engineering services provider forecasted its fiscal outlook unchanged.

OSRAM Licht AG tumbled 22.3% to €32.60 after Germany-based lighting manufacturer lowered revenues growth forecast in the second-quarter ending in June between 1% and 3% from the earlier estimate of 3% to 5%.

The lighting manufacturer also lowered operating profit forecast in the range of €570 million to €600 million from the earlier estimate of about €640 million and earnings per share between €1 and €1.20 from the earlier estimate of €1.90 to €2.10.

Sanofi S.A slipped 1.2% to €68.32 after France-based drug maker finalized negotiations to sell its European generics business Zentiva to Advent International for about €1.9 billion.

The transaction is expected to close in the fourth quarter of 2018.

ThyssenKrupp AG dropped 1.9% to €20.56 after Reuters said Germany-based diversified industrial conglomerate and India-based Tata Steel Ltd are close to concluding to merging their European assets worth about €15 billion or $17.4 billion.