SAP in

Sarla Buch
12 Nov, 2018
New York City

Allianz profit jumped 5% and the insurer reaffirmed fiscal outlook. British American Tobacco plunged after the U.S. regulator may ban flavored menthol cigarettes. Infineon Technologies plummeted despite strong fiscal results. SAP agreed to buy Qualtrics International.

[R]4:00 PM Frankfurt – Allianz profit jumped 5% and the insurer reaffirmed fiscal outlook. British American Tobacco plunged after the U.S. regulator may ban flavored menthol cigarettes. Infineon Technologies plummeted despite strong fiscal results. SAP agreed to buy Qualtrics International.[/R]

In London trading, FTSE 100 index dropped 30.19 or 0.4% to 7,074.47 and in Frankfurt the DAX index declined 162.90 or 1.4% to 11,366.02.

In Paris, CAC 40 index slumped 29.35 or 0.6% to 5,076.61.

Allianz SE slid 0.1% to €191.86 after Germany-based financial services provider reported total revenues in the nine-month period ending in September advanced 3.6% from a year ago to €97.8 billion.

Net profit in the period jumped 4.6% to €5.9 billion from €5.7 billion in a year ago period and diluted earnings per share increased to €13.36 from €11.98.

The insurance services provider said operating profit in the period soared 4.8% to €8.7 billion from a year ago period after higher underwriting fees in property-casualty business.

Allianz said it has completed its latest share buy -back program in September 2018 of about €1 billion.

The financial services company reaffirmed fiscal 2018 operating profit of about €11.1 billion, plus or minus €500 million.

British American Tobacco Plc plunged 9.5% to 3,001 pence after the Wall Street Journal reported that Food and Drug Administration plans to outright ban flavored menthol cigarettes.

Recently, British American Tobacco acquired the U.S.-based Newport Corporation, the largest menthol cigarette maker in North America which contributes 25% of group’s annual profit.

Infineon Technologies AG plummeted 7.6% to €16.81 after Germany-based semiconductor manufacturer said revenues in the year ending in September soared 7% from a year ago to €7.6 billion.

Net profit in the period surged 39.2% to €1 billion from €790 million in a year ago period and diluted earnings per share advanced to €0.95 from €0.70.

The semiconductor maker forecasted fiscal 2019 revenue growth between 9% and 11% and revenue growth in the automotive segment is expected to exceed the group’s average.

Separately, today Infineon agreed to acquire domestic cold split technology provider and start-up Siltectra GmbH for about €124 million.

SAP SE declined 4.2% to €91.20 after Germany-based enterprise application software developer agreed to acquire the U.S.-based rival Qualtrics International Inc for €7 billion or $7.9 billion in cash.

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

“SAP will help us scale faster and achieve our mission on a broader stage. This will put the XM Platform everywhere overnight,” said chief executive officer of Qualtrics Ryan Smith.