Saab, Boeing Win $9 B U.S. Air Force Contract; Serco Rides on Positive Outlook

Sarla Buch
28 Sep, 2018
New York City

Kaufman declined ahead of its third-quarter earnings results. Serco surged after better-than-expected profit forecast. Saab and Boeing won $9.2 billion contract from the U.S. Air Force. SMA Solar Technology plunged 9% after solar equipment supplier lowered outlook.

[R]4:00 PM Frankfurt – Kaufman declined ahead of its third-quarter earnings results. Serco surged after better-than-expected profit forecast. Saab and Boeing won $9.2 billion contract from the U.S. Air Force. SMA Solar Technology plunged 9% after solar equipment supplier lowered outlook.[/R]

In London trading, FTSE 100 index decreased 14.18 or 0.2% to 7,531.26 and in Frankfurt the DAX index declined 199.62 or 1.6% to 12,235.97.

In Paris, CAC 40 index dropped 46.32 or 0.8% to 5,494.08.

Eurokai GmbH & Co KGaA gained 1.9% to €36 after Germany-based shipping and logistics investor said revenues in the first-half ending in June fell 0.8% from a year ago to €167.1 million.

Net profit in the period declined 20% to €26.2 million from €32.7 million in a year ago period and diluted earnings per share dropped to €1.15 from €1.62.

Eurokai said revenues in Eurogate segment dropped 3.4% to €292.7 million after the handling volume at the Hamburg terminal declined 16.2% but volumes surged 25.7% at the Wilhelmshaven terminal.

Kaufman & Broad SA declined 3.7% to €40.20 ahead of France-based real estate developer’s scheduled third-quarter earnings results after the market close.

Serco Group Plc surged 14.6% to 101.20 pence after the U.K.-based defense, transport, justice, immigration, healthcare and citizen services provider lifted fiscal 2018 revenues forecast to about £2.8 billion from the earlier estimate of £2.7 billion to £2.8 billion.

The outsource services provider also lifted fiscal profit growth forecast to between 30% and 40% or in the range of £90 million to £95 million from the earlier estimate of £80 million.

Saab AB soared 8.1% to 446.90 Swedish kronor after Sweden-based aerospace and defense products maker and the U.S.-based Boeing Co were awarded $9.2 billion contract to provide next-generation military trainer jets to the U.S. Air Force.

“This selection allows two companies to deliver a commitment we jointly made nearly five years ago,” said president and chief executive officer of Saab Hakan Buskhe.

SMA Solar Technology AG plunged 8.5% to €20.14 after the Germany-based solar energy equipment supplier lowered fiscal 2018 revenues forecast in the range of €800 million to €850 million from the earlier estimate of €900 million to €1 billion.

The solar energy equipment supplier lowered operating profit forecast to break-even to slightly negative from the earlier estimate of €90 million to €110 million.