Bayer Lowers Forecast, BioMerieux Lifts Outlook

Sarla Buch
05 Sep, 2018
New York City

BioMerieux revised fiscal outlook after profit surged 33%. Barratt Developments reported strong performance. Bayer lowered earnings outlook as profit missed estimates on Monsanto deal. Berkeley reaffirmed pretax profit for five-year period to 2021. Barratt profit and sales jumped.

[R]4:00 PM Frankfurt – BioMerieux revised fiscal outlook after profit surged 33%. Barratt Developments reported strong performance. Bayer lowered earnings outlook as profit missed estimates on Monsanto deal. Berkeley reaffirmed pretax profit for five-year period to 2021. Barratt profit and sales jumped.[/R]

In London trading, FTSE 100 index declined 89.23 or 1.2% to 7,368.49 and in Frankfurt the DAX index plunged 168.63 or 1.3% to 12,046.54.

In Paris, CAC 40 index plummeted 79.38 or 1.5% to 5,262.32.

BioMerieux SA soared 6.5% to €79.10 after France-based diagnostic solutions provider said revenues in the first-half ending in June jumped 3.1% from a year ago to €1.2 billion.

Net profit in the period surged 32.8% to €134 million from €101 million in the same period a year ago and diluted earnings per share advanced to €1.14 from €0.86.

BioMerieux revised fiscal 2018 sales growth forecast to about 9.5% and operating income to between €340 million and €350 million.

Bayer AG dropped 1.1% to €78.97 after Germany-based conglomerate reported revenues in the first-half ending in June rose 1.1% from a year ago to €18.6 billion.

Net profit in the period declined 15.2% to €2.8 billion from €3.3 billion in the same period a year ago and diluted earnings per share of dropped to €3.06 from €3.74.

""As the acquisition of Monsanto closed later than anticipated, Bayer''s 2018 earnings will be lower than projected in February forecast,"" said Chairman of the Board Werner Baumann.

On June 7, Bayer completed Monsanto acquisition for $63 billion, including debt.

The conglomerate lifted fiscal 2018 sales forecast to about €39 billion from the earlier estimate of €35 billion and Monsanto is estimated to contribute sales of about €5 billion to total sales.

Earnings per share estimate is now revised to between €5.70 and €5.90 from the restated earnings per share of €6.64 in fiscal 2017.

Berkeley Group Holdings Plc gained 0.6% to £3,533 pence after the U.K.-based property developer reaffirmed pretax profit forecast for the five-year period from May 1, 2016 to April 30, 2021 of about £3.38 billion, with at least £1.58 billion pre-tax profit to be delivered in the two years ending April 30, 2019.

Berkeley also reaffirmed that net cash at the half-year will be above the year-end position of £687.3 million.

Barratt Developments Plc increased 0.6% to 539 pence after the U.K.-based residential property developer said revenues in the year ending in June advanced 4.8% from a year ago to £4.9 billion.

Net income in the year soared 9.1% to £671.7 million from £615.8 million in a year ago period and diluted earnings per share jumped to 65.9 pence from 60.7 pence.