Maersk Narrows Operating Profit Range, Alstom Net Rises on Strong Order Flow

Sarla Buch
14 Nov, 2018
New York City

Alstom reported strong first-half results. Maersk reported profit ahead of expectations despite higher costs. E.ON jumped despite reporting lower-than-expected results.EDF said strong revenues were driven by generation and supply business.Merck net tumbled but drug maker lifted fiscal sales outlook.

[R]4:00 PM Frankfurt – Alstom reported strong first-half results. Maersk reported profit ahead of expectations despite higher costs. E.ON jumped despite reporting lower-than-expected results. EDF said strong revenues were driven by generation and supply business. Merck net tumbled but drug maker lifted fiscal year sales outlook.[/R]

In London trading, FTSE 100 index rose 18.80 or 0.3% to 7,072.62 and in Frankfurt the DAX index increased 8.91 to 11,481.24.

In Paris, CAC 40 index edged down 1.44 to 5,100.11.

Alstom SA jumped 3% to €39 after France-based locomotive manufacturer said total sales in the first-half soared 20% from a year ago to €4 billion.

Net profit in the period surged to €563 million from €177 million in a year ago period and diluted earnings per share declined to €6.08 from €8.12.

The locomotive maker said as of September 30, total orders jumped 9% to €38.1 billion and new orders in the quarter surged 125% to €7.1 billion from €3.2 billion in the same period a year ago.

The Alstom forecasted fiscal 2019 sales of about €8 billion and operating margin of about 7%.

Separately, Alstom and Canada-based Bombardier Transportation signed a contract to supply additional AZUR metro cars for Montreal worth about €299 million.

Bombardier''s share of the contract is worth €188 million and Alstom''s share is valued at €112 million.

AP Moeller Maersk A/S fell 0.5% to 8,688 Danish kronor after Denmark-based transport, logistics and energy conglomerate said sales in the nine-month period ending in September surged 28% from a year ago to $30.9 billion.

Net loss in the period narrowed to $1.2 billion from $1.6 billion in a year ago period and diluted loss per share dropped to 58 cents from 76 cents.

The container shipping services provider said average freight rates in the quarter jumped 5.5% and average bunker price soared 47% from a year ago period.

Maersk lifted fiscal 2018 operating profit forecast in the range of $3.6 billion to $4 billion from the earlier estimate of $3.5 billion to $4.2 billion.

E.ON SE jumped 4.6% to €9.07 after Germany-based electric utility service provider reported total revenues in the nine-month period ending in September slumped 13% from a year ago to €24.3 billion.

Net profit in the period plunged 21.6% to €2.9 billion from €3.7 billion in a year ago period and diluted earnings per share declined to €1.35 from €1.75.

E.ON forecasted fiscal 2018 operating profit between €2.8 and €3 billion and net income in the range of €1.3 billion to €1.5 billion.

Electricite de France SA slipped 0.5% to €15.47 after France-based electric utility provider stated group sales in the nine-month period soared 7.2% from a year ago to €49.6 billion.

France generation and supply business sales jumped 6% to €18.9 billion, sales in regulated activities segment increased 2.5% to €11.6 billion, sales in EDF renewables surged 13.1% to €1.1 billion and sales in Dalkia business soared 7.3% to €2.8 billion.

EDF forecasted fiscal 2018 operating profit between €14.8 billion and €15.3 billion and total net investments €15 billion.

Merck KGaA advanced 3.5% to € 96.78 after Germany-based healthcare, life science products maker reported total revenues in the nine-month period ending in September rose 0.7% from a year ago to €10.9 billion.

Net profit in the period tumbled 42% to €928 million from €1.6 billion in a year ago period and diluted earnings per share dropped to €2.13 from €3.66.

The drug maker said healthcare business sales growth soared 9.9% and life science segment sales surged 9.8%.

Merck lifted fiscal 2018 sales growth to between 4% and 6% from the earlier estimate of 3% and 5%.