Safran Advances in Positive Surprise, Wendel Net Plunges

Sarla Buch
06 Sep, 2018
New York City

Ambu fell after its lead investor lowered its stake. Safran lifted profit outlook on stronger visibility of orders. Sodexo declined after weak revenue estimate. Wendel profit declined 8%.

[R]4:00 PM Frankfurt – Ambu fell after its lead investor lowered its stake. Safran lifted profit outlook on stronger visibility of orders. Sodexo declined after weak revenue estimate. Wendel profit declined 8%.[/R]

In London trading, FTSE 100 index slid 6.52 to 7,376.61 and in Frankfurt the DAX index fell 17.59 or 0.2% to 12,021.37.

In Paris, CAC 40 index increased 12.44 or 0.2% to 5,272.99.

Ambu A/S dropped 1% to 215.20 Denmark kronor after Denmark-based diagnostic and life-supporting devices maker said the lead investor Augustinus Fabrikker Akts sold 13.5 million shares and reduced its stake in the company to 4.9% or 12.3 million shares.

Novartis AG gained 0.1% to 79.54 Swiss francs after Switzerland-based drug-maker today said it had agreed to sell its dermatology and generic oral solids portfolios, including 300 products of Sandoz U.S. to India-focused rival Aurobindo Pharma USA Inc for $900 million

The transaction is expected to close in the fiscal 2019.

Safran SA surged 7.3% to €117.05 after France-based aircraft engine, rocket engine, aerospace and defense parts maker reported revenues in the first-half ending in June surged 23.9% from a year ago to €9.5 billion.

Net profit in the period plunged 37.4% to €932 million from €1.5 billion in the same period a year ago and diluted earnings per share declined to €2.11 from €3.56.

Safran forecasted strong activities in the propulsion, aircraft equipment and defense businesses in the second-half of 2018.

The aircraft engine maker lifted fiscal revenues growth in the range of 7% to 9% from the earlier estimate of 2% to 4%.

Zodiac Aerospace unit forecasted revenues between €3.6 billion and €4 billion and operating income in the range of €260 million to €300 million.

Sodexo SA declined 3.7% to €86.30 after France-based food services provider forecasted revenue growth of above 3% by fiscal 2020 and operating profit margin of more than 5.7%.

In fiscal 2018, on-site food services provider reaffirmed revenue growth of between 1% and 1.5% and operating profit margin of about 5.7%.

Wendel SE gained 1% to €125.80 after France-based investment services provider reported revenues in the first-half ending in June jumped 3.1% from a year ago to €4.2 billion.

Net income in the period declined 8.3% to €115.3 million from €125.8 million in the same period a year ago and diluted loss per share swung to a €0.04 from diluted earnings per share of €0.69.

As of June 30, Wendel said net debt jumped to €9.3 billion from €6.8 billion in a year ago period mainly related to Sika transaction for €933 million and stock repurchase of €389 million.