Market Updates

Daimler to Split; Airbus Struggles with Revenue Growth, Nestle Net Rises

Sarla Buch
26 Jul, 2018
New York City

    Airbus profit tumbled on weak revenues. Casino Guichard net loss narrowed. Daimler plans to split itself into cars, trucks, mobility units. Glaxo net soared.Nestle profit surged. Nokia net plunged and said 5G will begin from third-quarter.

[R]4:00 PM Frankfurt – Airbus profit tumbled on weak revenues. Casino Guichard net loss narrowed. Daimler plans to split itself into cars, trucks, mobility units. Glaxo net soared.Nestle profit surged. Nokia net plunged and said 5G will begin from third-quarter.[/R]

In London trading, FTSE 100 index increased 10.44 to 7,667.98 and in Frankfurt the DAX index soared 239.68 or 1.9% to 12,819.17.

In Paris, CAC 40 index gained 40.59 or 0.8% to 5,467.

Airbus SE jumped 3.7% to €108.82 after the Netherlands-based aerospace and defense contractor reported revenues in the first-half ending in June slid 0.8% from a year ago to €25 billion.

Net income in the period tumbled 54.9% to €496 million from €1.1 billion in the same period a year ago and diluted earnings per share dropped to €0.64 from €1.41.

Airbus said as of June 30, total order backlog totaled to 7,168 commercial aircrafts and the plane maker forecasted to deliver around 800 commercial aircrafts.

Casino Guichard Perrachon SA plunged 6.8% to €32.94 after the France-based food retailer reported net sales in the first-half ending in June dropped 3.4% from a year ago to €17.8 billion.

Net loss in the period narrowed to €128 million from €136 million in the same period a year ago and diluted loss per share dropped to €0.64 from €1.41.

Daimler AG advanced 2.4% to €59.25 after Germany-based automobile maker said revenues in the first-half ending in June rose 1% from a year ago to €80.5 billion.

Net income in the period declined 19% to €4.2 billion from €5.2 billion in the same period a year ago and diluted earnings per share dropped to €3.74 from €4.67.

Daimler forecasted fiscal 2018 unit sales grow to edge up slightly and revenue and group operating profit may be lower and total unit sales to slightly increase from a year ago period.

The automobile maker said it plans to split itself into three separate entities Mercedes-Benz AG, Daimler Truck AG and Daimler Mobility AG.

GlaxoSmithKline Plc ((GSK)) slipped 1.3% or 55 cents to $40.66 after the U.K.-based vaccines, healthcare and consumer products maker reported revenues in the first-half ending in June fell 1% from a year ago to £14.5 billion.

Net income in the period soared 7.9% to £1.2 billion from £1.1 billion in a year ago period and diluted loss per share increased to 20 pence from 17.6 pence.

Nestle SA increased 2% to 81.50 Swiss francs after the Switzerland-based food and beverage products maker said net sales in the first-half ending in June jumped 2.3% from a year ago to 43.9 billion francs.

Net income in the period surged 19% to 5.8 billion francs from 5.2 billion in the same period a year ago and diluted earnings per share dropped to 1.92 francs from €4.67.

Nestle forecasted fiscal 2018 sales growth of 3%, operating profit margin in line with 2020 target, restructuring costs of about 700 million francs and earnings per share is estimated to increase.

Nokia Oyj declined 5.4% to €4.79 after the Finland-based telecom and consumer electronic products maker reported net sales in the first-half ending in June slumped 7% from a year ago to €10.2 billion.

Net income in the period plunged 64% to €230 million from €646 million in the same period a year ago and diluted earnings per share dropped to €0.04 from €0.11.

""We believe that the cycle for 5G will begin from Q3,"" said chief executive officer Rajeev Suri.

Nokia reaffirmed its fiscal 2018 outlook and an operating margin growth between 6% and 9%.

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