Atos to Buy Syntel; Philips Reaffirms Outlook, Julius Baer Net Edges Up

Sarla Buch
23 Jul, 2018
New York City

Atos declined on weak revenues. Hammerson agreed to sell two retail parks. Julius Baer said profit soared 26%. Philips profit tumbled 77% but the electronics company reaffirmed fiscal outlooks. Ryanair profit declined on higher fuel costs.

[R]4:00 PM Frankfurt – Atos declined on weak revenues. Hammerson agreed to sell two retail parks. Julius Baer said profit soared 26%. Philips profit tumbled 77% but the electronics company reaffirmed fiscal outlooks. Ryanair profit declined on higher fuel costs.[/R]

In London trading, FTSE 100 index slid 18.77 or 0.2% to 7,659.80 and in Frankfurt the DAX index fell 23.80 or 0.2% to 12,537.99.

In Paris, CAC 40 index decreased 28.50 or 0.5% to 5,369.82.

Atos SE declined 6.6% to €115 after France-based digital information technology provider reported revenues in the first-half ending in June increased 1.7% from a year ago to €6 billion and operating profit jumped 9% to €545 million from a year ago period.

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

Separately today, Atos agreed to acquire the U.S.-based Syntel, Inc for $41 per share in cash or about $3.57 billion.

The transaction is expected to close by the end of the year.

Hammerson Plc slid 0.1% to 533.20 pence after the U.K.-based property developer today said that it had sold its two retail parks of Imperial Retail Park in Bristol and Fife Central Retail Park for £164 million to property investor Capreon.

Julius Baer Gruppe AG declined 4.7% to 54.20 Swiss francs after Switzerland-based private banking services provider reported operating income in the first-half ending in June surged 12% to 1.8 billion francs and net profit soared 26% from a year ago to 443.8 million francs.

The banking services provider said as of June 30, total client assets rose 3% to 399.9 billion francs from a year ago period.

Koninklijke Philips NV dropped 1.9% to €35.99 after the Netherlands-based health and consumer electronics products maker reported revenues in the first-half ending in June fell 1.2% from a year ago to €8.2 billion.

Net income in the period tumbled 77% to €126 million from €548 million in a year ago period and diluted earnings per share declined to €0.14 from €0.51.

“We reiterate our targets for the 2017–2020 period, comparable sales growth of 4% to 6% and average annual 100 basis points improvement in operating profit margin,” said chief executive officer Frans van Houten.

Ryanair Holdings plc plunged 5.5% to €14.63 after Ireland-based low-cost airline services provider said revenues in the first-quarter ending in June jumped 9% from a year ago to €2.1 billion.

Net income in the quarter declined 22.1% to €309.2 million from €397.1 million in a year ago period and diluted earnings per share slumped to €0.26 from €0.32.

The airline reaffirmed fiscal 2019 profit forecast between €1.25 billion and €1.35 billion, however, ancillary revenue continues to increase but will not offset €430 million higher fuel bill or a 6% increase in ex-fuel unit costs.