BMW Lowers Outlook on Trump Tariffs, AA Plunges 12%

Sarla Buch
26 Sep, 2018
New York City

AA Plc tumbled after profit declined 64%. BMW lowered fiscal revenues and profit forecast and cited global trade tensions and tougher emission tests. FairFX reported better-than-expected results. Mitie plunged on weak outlook.

[R]4:00 PM Frankfurt – AA Plc tumbled after profit declined 64%. BMW lowered fiscal revenues and profit forecast and cited global trade tensions and tougher emission tests. FairFX reported better-than-expected results. Mitie plunged on weak outlook.[/R]

In London trading, FTSE 100 index decreased 7.60 to 7,499.65 and in Frankfurt the DAX index fell 26.54 or 0.2% to 12,349.22.

In Paris, CAC 40 index advanced 22.89 or 0.4% to 5,501.76.

AA Plc tumbled 12.1% to 105 pence after the U.K.-based vehicle insurer and loans services provider said revenues in the first-half ending in July rose 2% from a year ago to £480 million.

Net profit in the period plunged 64.1% to £23 million from £64 million in the same period a year ago and diluted earnings per share slumped to 3.8 pence from 10.5 pence.

The auto insurance services provider reaffirmed fiscal 2018 operating profit forecasted between £335 million and £345 million and sustainable long-term growth in roadside and insurance businesses.

Bayerische Motoren Werke AG fell 0.8% to €78.35 after Germany-based luxury automobiles maker reported revenues in the first-half ending in June dropped 2.9% from a year ago to €25 billion.

Net profit in the period declined 6.4% to €2.1 billion from €2.2 billion in the same period a year ago and diluted earnings per share dropped to €3.14 from €3.35.

BMW estimated fiscal year revenues to drop slightly and lowered operating margin growth to 7% from the earlier estimate of 8% and pretax profit to moderately decrease from €10.7 billion in a year ago period.

FairFX Group Plc jumped 4.9% to 144.80 pence after the U.K.-based foreign exchange payment services provider said revenues in the first-half ending in June doubled from a year ago to £12 million.

Net profit in the period surged to £2.1 million from £0.2 million in the same period a year ago and diluted earnings per share increased to 1.38 pence from 0.14 pence.

FairFX said total turnover for July and August jumped 152% to £472 million and group turnover soared 146% to £1.1 billion from a year ago period.

Mitie Group Plc plunged 8.4% to 141.10 pence after the U.K.-based outsourcing and energy services provider forecasted revenues growth in the first-half ending in September between 2% and 3% and operating profit likely to “flat to slightly fall.”

The outsourcing company said new orders declined in recent months.

As of September 30, Mitie said net debt is estimated to be in the range of £230 million to £250 million.

The energy services provider reaffirmed fiscal 2019 operating profit margin forecast between 4.5% and 5.5%.