ASML Advances on Strong Lithography Demand, Fresenius Plunges 17%

Sarla Buch
17 Oct, 2018
New York City

ASML beats third-quarter expectations. Akzo Nobel net jumped but revenues declined. Fresenius tumbled after weaker-than-expected results and lowered fiscal outlook. Danone plunged weakening demand in China.

[R]4:00 PM Frankfurt – ASML beats third-quarter expectations. Akzo Nobel net jumped but revenues declined. Fresenius tumbled after weaker-than-expected results and lowered fiscal outlook. Danone plunged weakening demand in China.[/R]

In London trading, FTSE 100 index fell 29.12 or 0.4% to 7,030.28 and in Frankfurt the DAX index slipped 94.70 or 0.8% to 11,681.85.

In Paris, CAC 40 index dropped 50.54 or 1% to 5,122.50.

ASML Holding NV jumped 4.3% to €161.68 after the Netherland-based photolithography equipment supplier reported total net sales in the nine-month period ending on October 1 soared 31.8% from a year ago to €5.8 billion.

Net profit in the period surged 21.6% to €1.8 billion from €1.5 billion in a year ago period and diluted earnings per share jumped to €4.22 from €3.41.

The chipmaker issued a positive outlook and said memory and logic chips demand is strong and the equipment maker plans to ship a total of 18 advanced lithography systems in the rest of the year and ship 30 systems in the second-half of 2019.

ASML forecasted fourth-quarter net sales of about €3 billion and gross margin of about 48%.

The memory maker forecasted strong demand in logic and memory will also continue in fiscal 2019.

Akzo Nobel N.V advanced 2.9% to €76.24 after the Netherland-based paints and coatings maker reported revenues in the nine-month period ending in September slumped 5% from a year ago to €6.9 billion.

Net profit in the period jumped 9% to €825 million from €757 million in a year ago period and diluted earnings per share advanced to €1.76 from €1.54.

The paints and coatings maker said raw material price inflation is estimated to continue for the rest of 2018, although at a slower rate than during the start of the year.

Fresenius Medical Care AG & Co KGaA tumbled 17.3% to €70.90 after Germany-based dialysis products and services provider said revenues in the third-quarter ending in September declined 6% from a year ago to €4.1 billion.

Net profit in the period plunged 8% to €285 million from €309 million in a year ago period and diluted earnings per share advanced to €1.76 from €1.54.

Fresenius Medical Care lowered fiscal 2018 revenue growth forecast to between 2% and 3% from the earlier estimated to 5% to 7% and net income growth in the range of 11% to 12% from the earlier estimated to 13% to 15%.

Danone SA plunged 5.7% to €61.36 after the France-based food and beverages maker said sales in the third-quarter ending in September declined 4.4% from a year ago to €6.1 billion and comparable sales increased 1.4% but volume declined 1.9%.

Danone said waters segment revenues soared 6.4% to €1.3 billion but nutrition business decline in China.

Roche Holding AG dropped 2.1% to 235.40 Swiss francs after Switzerland-based healthcare products maker reported group sales soared 7% from a year ago to 42.1 billion francs.

Roche said sales in the pharmaceuticals division jumped 7% to 32.8 billion francs as sales in all regions except Europe rose and sales in the diagnostics business advanced 7% to 9.4 billion francs.

The healthcare products maker forecasted fiscal 2018 sales to grow in mid-single digit and core earnings per share to grow in the mid-teen digits.