Arcelor Mittal Beats Estimates, Swiss Re Swings to Profit Overcoming Disasters

Sarla Buch
01 Nov, 2018
New York City

Arcelor Mittal beats earnings estimates but steelmaker said shipments plummeted. BT Group surged after improved forecast. Credit Suisse reported lower-than-expected results. Swiss Re returned to profitability despite a series of heavy natural catastrophes and man-made disasters.

[R]4:00 PM Frankfurt – Arcelor Mittal beats earnings estimates but steelmaker said shipments plummeted. BT Group surged after improved forecast. Credit Suisse reported lower-than-expected results. Swiss Re returned to profitability despite a series of heavy natural catastrophes and man-made disasters.[/R]

In London trading, FTSE 100 index decreased 21.23 or 0.3% to 7,108.90 and in Frankfurt the DAX index aged up 8.67 to 11,455.81.

In Paris, CAC 40 index slipped 23.94 or 0.5% to 5,069.49.

Arcelor Mittal SA fell 0.9% to €21.84 after Luxembourg-based steel manufacturer reported revenues in the nine-month period ending in September surged 13.2% from a year ago to $57.7 billion.

Net income in the period jumped 12.2% to $3.9 billion from $3.5 billion in the same period a year ago and diluted earnings per share dropped to $3.87 from $3.45.

The steel maker said profit in the third-quarter declined 25.1% to $899 million from $1.2 billion in the same period a year ago.

The steel producer said total steel shipments in the quarter plummeted 5.4% to 20.5 million tons and shipments of iron ore slumped 5.6% to 14.2 million tons.

Impairment charges in the nine-month period were $595 million primarily related to the remedy asset sale for the Ilva acquisition.

Separately today, ArcelorMittal announced the completion of the acquisition of Italy-based Ilva S.p.A.

BT Group Plc surged 8.6% to 261.20 pence after the U.K.-based fixed-line, broadband and mobile services provider said revenues in the first-half ending in September fell 2% from a year ago to £11.6 billion.

Net income in the period soared 29.8% to £1.1 billion from £809 million in the same period a year ago and diluted earnings per share increased to 10.5 pence from 8.2 pence.

The telecom services provider reaffirmed fiscal 2018 operating profit forecast in the range of £7.3 billion to £7.4 billion.

Credit Suisse Group AG slumped 2.2% to 12.94 Swiss francs after Switzerland-based investment bank and financial services provider reported net revenues in the nine-month period ending in September increased 3% from a year ago to 16.1 billion francs.

Net profit in the period surged 54% to 1.8 billion francs from 1.1 billion francs in the same period a year ago.

ING Group NV soared 6.9% to €11.21 after the Netherlands-based banking and financial services provider stated revenues in the nine-month period ending in September advanced 1.9% from a year ago to €10.6 billion.

Net income in the period plunged 11.8% to €3.4 billion from €3.9 billion in the same period a year ago and diluted earnings per share dropped to €0.88 from €1.

On September 4, the lender reached a settlement agreement with the Dutch Public Prosecution Service related to anti-money laundering investigation.

Swiss Re AG slipped 0.8% to 90.22 Swiss francs after Switzerland-based insurance services provider reported gross premiums written in the nine-month period ending in September jumped 6.4% from a year ago to $28.4 billion.

Net in the period swung to profit $1.1 billion from a loss of $468 million in the same period a year ago.

The insurer said net swung to profit despite estimated claims of $1.6 billion from natural catastrophes and large man-made damages in the quarter.