Bouygues Lowers Profit Outlook; Royal Mail Net Tumbles

Sarla Buch
15 Nov, 2018
New York City

Bouygues profit jumped on higher telecom business. Henkel reaffirmed fiscal outlook. Linde sales dropped but profit soared. Royal Mail tumbled.

[R]4:00 PM Frankfurt – Bouygues profit jumped on higher telecom business. Henkel reaffirmed fiscal outlook. Linde sales dropped but profit soared. Royal Mail tumbled.[/R]

In London trading, FTSE 100 index decreased 32.51 or 0.5% to 7,001.28 and in Frankfurt the DAX index dropped 58.53 or 0.5% to 11,352.97.

In Paris, CAC 40 index slumped 46.72 or 0.9% to 5,021.94.

Bouygues SA advanced 1% to €32.89 after France-based construction services provider reported sales in the nine-month period ending in September jumped 25.2% from a year ago to €25.2 billion.

Net profit in the period soared 12% to €772 million from €689 million in a year ago period and diluted earnings per share advanced to €2.09 from €1.92.

Bouygues said weak construction business was offset by improved performance in the telecom and the TF1 TV channel business.

The industrial construction services provider reaffirmed fiscal 2018 operating margin to decline but telecom business is expected to improve performance with a free cash flow target of €300 million for 2019 and TF1 will deliver higher operating margin.

Henkel AG & Co KGaA jumped 2% to €99.56 after Germany-based chemical and consumer goods maker reported sales in the nine-month period ending in September fell 0.8% from a year ago to €15 billion.

Net profit in the period declined 1.8% to €1.77 billion from €1.80 billion in a year ago period and diluted earnings per share decreased to €4.05 from €4.12.

Henkel reaffirmed fiscal 2018 sales to grow between 2% and 4% and sales growth in adhesive technologies business to grow in the range of 4% to 5%.

Sales growth in the beauty care business is expected to grow flat to 2%, sales in laundry and home care segment in the range of 2% to 4% and earnings per share to grow between 3% and 6%.

Linde AG edged down 0.1% to €191.90 after Germany-based industrial gas maker said revenues in the nine-month period ending in September slumped 1.7% from a year ago to €13.3 billion and operating profit soared 9% to €3.3 billion.

The industrial gas maker forecasted fiscal 2018 group revenue growth between flat and 4% and operating profit in the range of flat to 5%.

Royal Mail Plc declined 6.4% to 325.80 pence after the U.K.-based letters and parcels delivery services provider said revenues in the first-half ending on September 23 rose 1% from a year ago to £4.9 billion.

Net profit in the period tumbled to £5 million from £169 million in a year ago period and diluted loss per share declined to 5 pence from 17 pence.

Royal Mail forecasted fiscal 2018 group operating profit before transformation costs of £500 million to £550 million and total net cash investment of about £500 million.