Iberdrola Sells Power Plants to Drax, Meggit Lifted 2018 Forecast

Sarla Buch
16 Oct, 2018
New York City

Iberdrola agrees to sell Scottish utility plants to U.K.-based Drax Group. Aerospace equipment provider Meggitt lifted fiscal 2018 revenues forecast. Merck said it expects to return to profitable growth in 2019. Merlin Entertainments declined on weak performance.

[R]4:00 PM Frankfurt – Iberdrola agrees to sell Scottish utility plants to U.K.-based Drax Group. Aerospace equipment provider Meggitt lifted fiscal 2018 revenues forecast. Merck said it expects to return to profitable growth in 2019. Merlin Entertainments declined on weak performance.[/R]

In London trading, FTSE 100 index rose 22.04 or 0.3% to 7,051.26 and in Frankfurt the DAX index advanced 122.52 or 1.1% to 11,736.68.

In Paris, CAC 40 index jumped 58.70 or 1.2% to 5,153.77.

Altarea SCA advanced 2.7% to €193 and the France-based shopping centers developer is scheduled to release earnings after the market close.

Iberdrola SA jumped 2.4% to €6.19 after Spain-based electric utility provider agrees to sell a group of Scottish gas, hydro and pumped storage power plants to the U.K.-based Drax Group Plc for €801 million or £702 million and plans to exit from coal-based production before 2025.

Meggitt Plc soared 5.4% to 521.40 pence after the U.K.-based aerospace equipment provider lifted fiscal 2018 revenue growth forecast to between 7% and 9% from the earlier estimate of 4% to 6% on stronger than estimated performances in civil aerospace and defense businesses..

Meggitt forecasted operating margin are estimated to be near the lower end of 17.7% to 18% range.

Merck KGaA gained 0.6% to €88.94 after Germany-based drug and life sciences products maker said the company is expected to return to profitable growth in fiscal 2019 and sustainable growth in net sales and operating profit.

Merlin Entertainments Plc declined 7.5% to 341.80 pence after the U.K.-based hotels and theme parks operator said as of October 15, revenue growth is estimated at 4.7% and comparable revenue growth of 1.4%.

Merlin said weak performance in Legoland Parks business was driven by higher costs that were offset by better-than-expected revenues at Resort Theme Park but Midway Attractions revenues were flat.