Fiat Chrysler Sells its Auto Parts Business, Philips Electronics Net Tumbles

Sarla Buch
22 Oct, 2018
New York City

Fuchs forecasted revenues in the third-quarter to jump 5%. Fiat Chrysler agreed to sell its auto parts business to Japan-based Calsonic Kansei. Leoni lowered operating profit forecast. Philips Electronics net tumbled 57%. Ryanair reported lower-than-expected profits.

[R]4:00 PM Frankfurt – Fuchs forecasted revenues in the third-quarter to jump 5%. Fiat Chrysler agreed to sell its auto parts business to Japan-based Calsonic Kansei. Leoni lowered operating profit forecast. Philips Electronics net tumbled 57%. Ryanair reported lower-than-expected profits.[/R]

In London trading, FTSE 100 index rose 4.82 to 7,054.76 and in Frankfurt the DAX index fell 10.59 to 11,546.81.

In Paris, CAC 40 index decreased 20.37 or 0.4% to 5,064.28.

Fuchs Petrolub SE declined 3.8% to €43.52 after Germany-based lubricants maker forecasted sales in the nine-month period ending in October to jump 5% from a year ago to €1.9 billion and operating profit to jump 6% to €297 million.

The lubricants maker said lowered growth estimate was driven by current difficulties in the domestic market and weak demand for vehicles in China may lower growth rate in the remainder of the year.

Fuchs forecasted fiscal 2018 sales growth between 3% and 5% and operating profit €373 million and earnings per share growth in the range of 2% and 4%.

Fiat Chrysler Automobiles NV jumped 4.1% to €13.99 after the Italy-based automaker agreed to sell its automotive components business Magneti Marelli S.p.A to Japan-based Calsonic Kansei Corporation for €6.2 billion or $7.1 billion.

Fiat Chrysler and Calsonic Kanse also agreed for a multi-year supply agreement.

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

“The transaction recognizes the full strategic value of Magneti Marelli and is another important step in our relentless focus on value creation,” said new chief executive officer Mike Manley.

Leoni AG advanced 2% to €30.57 after Germany-based wires, cables and wiring systems maker forecasted fiscal 2018 revenues to increase to €5 billion from $4.9 billion from a year ago period.

The automobile wiring systems maker lowered operating profit forecast in the range of €215 million to €235 million.

Leoni said volatile market, higher ongoing pre-production spending and weak orders from European carmakers and weaker trend in the Chinese car market are expected to affect revenue trend.

Philips Electronics NV plunged 8.6% to €31.80 after the Netherlands-based healthcare products maker said sales in the nine-month period ending in September rose 0.5% from a year ago to €12.5 billion.

Net income in the period tumbled 56.8% to €419 million from €971 million in the same period a year ago and diluted earnings per share slumped to €0.45 from €0.85.

The consumer electronics products maker forecasted fiscal 2018 fourth-quarter sales to fall 1% after revenues in the personal healthcare products segment are expected to drop 3% and revenues in the diagnosis and treatment business to decrease 1%.

Ryanair Holdings Plc soared 4.9% to €12.01 after Ireland-based low-cost airliner reported revenues in the first-half ending in September soared 8% from a year ago to €4.4 billion.

Net profit in the period declined 6% to €841.5 million from €895.4 million in the same period a year ago and diluted earnings per share slumped to €0.45 from €0.85.

The airliner lowered fiscal 2019 profit forecast to between €1.1 billion and €1.2 billion from the earlier estimate of €1.25 billion to €1.35 billion after 3% reduction in fares in the first-half period.