Saab Net Drops on Volatile Currency, Thales Net Jumps on Higher Margins

Sarla Buch
20 Jul, 2018
New York City

Bekaert said first-half sales will be below expectations. Faurecia plunged despite net increased 10%. Remy Cointreau sales barely budged. Saab reaffirmed fiscal outlook. Thales profit surged 53% on higher revenues. Wessanen net declined on weak revenues.

[R]4:00 PM Frankfurt – Bekaert said first-half sales will be below expectations. Faurecia plunged despite net increased 10%. Remy Cointreau sales barely budged. Saab reaffirmed fiscal outlook. Thales profit surged 53% on higher revenues. Wessanen net declined on weak revenues.[/R]

In London trading, FTSE 100 index fell 25.21 or 0.3% to 7,658.89 and in Frankfurt the DAX index declined 196.48 or 1.6% to 12,489.81.

In Paris, CAC 40 index slipped 48.51 or 0.9% to 5,366.99.

Bekaert tumbled 19.7% to €22.08 after Belgium-based steel wire maker forecasted first-half operating profit ending in June below expectations of about 20% which was driven by higher costs and tariffs while sales of about €2.1 billion.

However, steel wire maker forecasted fiscal 2018 margin may fell on expansions, investments and higher than estimated start-up costs.

Faurecia SA plunged 6.3% to €59.32 after France-based automobile parts maker reported revenues in the first-half ending in June soared 10.9% from a year ago to €9 billion.

Net income in the period soared 10.2% to €342 million from €310.4 million in a year ago period.

The Remy Cointreau gained 1.7% to €59.32 after France-based wine and spirits maker said total sales in the first-quarter ending in June rose 0.5% from a year ago to €241.5 million despite unfavorable currency effects.

Remy Cointreau said sales in House of Remy Martin grew 11%.

Saab AB jumped 4.8% to 396.10 Swedish kronor after Sweden-based aerospace and defense products maker reported sales in the first-quarter ending in June advanced 2% from a year ago to 15.8 billion kronor.

Net income in the period plunged 32% to 450 million kronor from 660 million kronor in the same period a year ago and diluted earnings per share slumped to 3.95 kronor from 5.99 kronor.

Saab reaffirmed fiscal 2018 sales growth will in-line with the expectation of about 5% and operating margin likely to improve by 10% from a year ago.

Thales SA edged down 0.1% to €113.15 after France-based aerospace, space, defense, security products maker said revenues in the first-half ending in June jumped 4.7% from a year ago to €4.7 billion.

Net income in the period surged 53% to €457 million from €299 million in a year ago period.

Thales said as of June 30, total orders dropped 3% to €31 billion.

Koninklijke Wessanen NV tumbled 23.6% to €13.34 after food products maker said revenues stated revenues in the first-half ending in June slid 0.3% from a year ago to €323.6 million.

Net income in the period declined 24.1% to €15.4 million from €20.3 million in a year ago period.

The food processor said as of June 30, net debt declined to €50.6 million from €71.1 million in the same period a year ago.