Electrolux, Lafarge Lift Outlook; BASF Net Drops on Rising US-China Tensions

Sarla Buch
26 Oct, 2018
New York City

BASF said declined in profit was driven by trade conflict and the chemical producer lowered fiscal 2018. Electrolux profit tumbled but lifted fiscal outlook. Eni net soared on higher oil prices. Lafargeholcim soared on improved sales. Total SA reported strong results.

[R]4:00 PM Frankfurt – BASF said declined in profit was driven by trade conflict and the chemical producer lowered fiscal 2018. Electrolux profit tumbled but lifted fiscal outlook. Eni net soared on higher oil prices. Lafargeholcim soared on improved sales. Total SA reported strong results.[/R]

In London trading, FTSE 100 index declined 137.51 or 1.9% to 6,866.59 and in Frankfurt the DAX index plummeted 213.41 or 1.9% to 11,093.71.

In Paris, CAC 40 index plunged 117.36 or 2.4% to 4,912.59.

BASF SE dropped 1.2% to €65.89 after Germany-based chemical producer reported revenues in the nine-month period ending in September rose 2% from a year ago to €47.1 billion.

Net income in the period declined 4% to €4.4 billion from €4.5 billion in the same period a year ago and diluted earnings per share slumped to €4.75 from €4.94.

BASF said the decline in profit was driven by trade conflict between the United States and China and deconsolidation of its oil-and-gas business.

The chemical producer lowered fiscal 2018 operating profit forecast to ‘considerably decline’ from the earlier estimate of ‘slightly decline’ but the company estimated a slight increase in sales.

Electrolux AB slumped 3.3% to 174.20 Swedish kronor after Sweden-based home appliance maker said sales in the nine-month period ending in September jumped 2% from a year ago to 89.7 billion kronor.

Net income in the period tumbled 38% to 3.1 billion kronor from 4.9 billion kronor in the same period a year ago and diluted earnings per share declined to 12.96 kronor from 19.88 kronor.

Electrolux lifted fiscal 2018 cost of raw materials, tariffs and currency translation forecast to about 3 billion kronor from the earlier estimate of 2.7 billion kronor.

Eni SpA gained 0.5% to €15.05 after Italy-based oil and gas producer reported revenues in the nine-month period ending in September jumped 13.4% from a year ago to €56.8 billion.

Net income in the period soared to €3.7 billion from €1.3 billion in the same period a year ago and diluted earnings per share increased to €1.03 from €0.37.

Eni forecasted in fiscal 2018 strong contribution in production growth from Kazakhstan-based Kashagan oil field and also estimated capital expenditure of about €7.7 billion.

Lafargeholcim Ltd soared 3.5% to 43.37 Swiss francs after Switzerland-based building materials producer said net sales in the nine-month period ending in September advanced 2.7% from a year ago to 20.6 billion francs.

The cement producer lifted fiscal 2018 net sales growth forecast to between 4% and 6% from the earlier estimate of 3% to 5% and operating profit growth in the range of 3% to 5%.

Total SA slumped 2.7% to €50.05 after France-based oil and gas producer reported revenues in the nine-month period ending in September soared 26.4% from a year ago to $156.9 billion.

Net income in the period surged 36% to $10.3 billion from $7.6 billion in the same period a year ago and diluted earnings per share increased to $3.88 from $3.02.

Total reaffirmed fiscal 2018 net investments of about $16 billion and in fiscal 2019-2020 in the range of $15 billion and $17 billion.