Carrefour, Novartis, Nestle, SAP Earnings Show Economic Strength in Europe

Sarla Buch
18 Oct, 2018
New York City

Carrefour sales in the third-quarter jumped. Ericsson net swung to profit. Kuehne + Nagel net benefits from the worldwide logistics boom. Nestle reaffirmed sales growth forecast. Novartis profit doubled and agreed to acquire Endocyte. SAP lifted fiscal outlook.

[R]4:00 PM Frankfurt – Carrefour sales in the third-quarter jumped. Ericsson net swung to profit. Kuehne + Nagel net benefits from the worldwide logistics boom. Nestle reaffirmed sales growth forecast. Novartis profit doubled and agreed to acquire Endocyte. SAP lifted fiscal outlook.[/R]

In London trading, FTSE 100 index edged down 0.91 to 7,053.69 and in Frankfurt the DAX index fell 27.99 or 0.2% to 11,687.04.

In Paris, CAC 40 index rose 9.02 or 0.2% to 5,153.96.

Carrefour SA jumped 8% to €16.84 after France-based hyper and supermarket operator reported group revenues in the third-quarter ending in September jumped 2.7% from a year ago to €21.1 billion.

The retailer said sales in Latin America plunged 15% to €3.6 billion and in the rest of world declined 7% to €11 billion from a year ago period.

However, sales in supermarkets segment jumped 3.2% to €3.3 billion and sales in hypermarkets segment rose 0.3% to €5.2 billion from a year ago period.

Telefonaktiebolaget LM Ericsson jumped 5.4% to 82.18 Swedish kronor after Sweden-based networking and telecom equipment maker reported sales in the third-quarter ending in September soared 9% from a year ago to 53.8 billion kronor.

Net in the quarter swung to profit 2.7 billion kronor from a loss of 3.5 billion kronor in the same period a year ago and diluted earnings per share swung to 0.83 kronor from diluted loss per share of 1.09 kronor.

Ericsson said sales growth was strong in North America, Europe and in Latin America.

Kuehne + Nagel International AG plunged 5.5% to 135.65 Swiss francs after Switzerland-based transport and logistics services provider said net sales in the nine-month period ending in September surged 13.6% from a year ago to 15.4 billion francs.

Net profit in the period jumped 7.4% to 580 million francs from 540 million francs in the same period a year ago and diluted earnings per share advanced to 4.82 francs from 4.49 francs.

The logistics services provider said operating profit soared 8.8% to 745 million francs from a year ago period.

Nestle SA gained 0.4% to 79.34 Swiss francs after Switzerland-based food and beverage maker reported sales in the nine-month period ending in September rose 2% from a year ago to 66.4 billion francs.

Nestle forecasted fiscal 2018 sales growth of about 3% and earnings per share in constant currency to increase and restructuring costs of about 700 million francs.

Novartis International AG advanced 1.8% to 85.80 Swiss francs after the Switzerland-based pharmaceutical products maker said net sales in the nine-month period ending in September increased 3% from a year ago to $38.6 billion.

Net income in the period more than doubled to $11.4 billion from $5.7 billion in the same period a year ago and diluted earnings per share jumped $4.92 from $2.43.

Separately, the drug maker agreed to acquire the U.S.-based biopharmaceutical Endocyte, Inc for about $2.1 billion in cash.

The transaction is expected to close in the first-half of 2019.

SAP SE plummeted 5.1% to €95.20 after Germany-based enterprise software developer reported revenues in the third-quarter ending in September soared 8% from a year ago €17.3 billion.

Net profit in the quarter jumped 10% to €2.4 billion from €2.2 billion in the same period a year ago and diluted earnings per share advanced to €2.01 from €1.81.

SAP lifted fiscal 2018 revenues forecast to between €25.20 billion and €25.50 billion from the earlier estimate of €24.98 billion to €25.30 billion and operating profit in the range of €7.43 billion to €7.53 billion from the earlier estimate of €7.40 billion to €7.50 billion.