Adecco Issues Weaker Outlook; Kingfisher Net Plunges 29%

Sarla Buch
19 Sep, 2018
New York City

Adecco said revenues growth in the third-quarter slowed. Babcock International jumped on positive outlook. Kingfisher net tumbled on weak sales. Schaeffler reaffirmed fiscal 2018 outlook.

[R]4:00 PM Frankfurt – Adecco said revenues growth in the third-quarter slowed. Babcock International jumped on positive outlook. Kingfisher net tumbled on weak sales. Schaeffler reaffirmed fiscal 2018 outlook.[/R]

In London trading, FTSE 100 index increased 34.22 or 0.5% to 7,334.45 and in Frankfurt the DAX index advanced 69.80 or 0.6% to 12,227.47.

In Paris, CAC 40 index jumped 35.24 or 0.6% to 5,399.03.

The Adecco Group AG plunged 6.2% to 54.16 Swiss francs after Switzerland-based staffing services provider reported revenues in the first-half ending in June was unchanged from a year ago at 11.7 billion francs.

Net income in the period declined 18% to 300 million francs from 368 million francs and diluted earnings per share dropped to 1.81 francs from 2.16 francs.

Adecco said domestic revenue growth in the third-quarter slowed from the second quarter, however revenues in August increased 2% but there is a slight deceleration in the September month.

Babcock International Group Plc jumped 3.2% to 714.20 pence after the U.K.-based civil engineering services provider forecasted fiscal 2018 revenue growth in low single-digit with stable margin.

Babcock said order pipeline is about £18 billion or $23.7 billion or approx 87% of revenue for fiscal 2019 and 57% of orders for fiscal 2020.

Kingfisher Plc declined 6.1% to 247.60 pence after the U.K.-based home improvement retailer reported sales in the first-half ending in July rose 1.2% from a year ago to £6.1 billion.

Net income in the period tumbled 29.5% to £208 million from £295 million in the same period a year ago and diluted earnings per share slumped to 9.7 pence from 13.3 pence.

The home improvement retailer said sales in France dropped 2.1% to £2.3 billion and comparable sales fell 2.4% after Castorama sales declined 6% which was partly offset by sales increase of 2.7% at Brico Depot.

Rocket Internet SE gained 0.3% to €26.82 and Germany-based Internet businesses investment firm is scheduled to release its first-half results on September 20.

Schaeffler AG advanced 3.2% to €11.08 after Germany-based automotive parts maker reaffirmed fiscal 2018 revenues growth forecast in the range of 5% to 6% and operating margin between 10.5% and 11.5%.

Schaeffler estimated free cash flow excluding merger and acquisition activities of about €450 million.