AXA Lifts Dividend Payouts, Safran Wins Zodiac Shareholders Approval

Sarla Buch
28 Nov, 2018
New York City

AXA lifted synergies and cash flow estimate from the merger with AXA XL merger. Knorr

[R]4:00 PM Frankfurt – AXA lifted synergies and cash flow estimate from the merger with AXA XL merger. Knorr – Bremse forecasted strong sales in fiscal 2018. Lafargeholcim reaffirmed growth estimate. Safran and Zodiac shareholders approve the merger.[/R]

In London trading, FTSE 100 index increased 14.11 or 0.2% to 7,031.19 and in Frankfurt the DAX index rose 21.99 or 0.2% to 11,332.24.

In Paris, CAC 40 index gained 23.07 or 0.5% to 5,006.05.

AXA SA increased 1.3% to €21.53 after the France-based insurance and financial services provider forecasted fiscal 2018 earnings per share to increase between 3% and 7% and lifted synergies on Bermuda-based AXA XL to €442 million from €400 million.

The insurer estimated profitability soar from the £11.76 billion acquisition of AXA XL and lifted return on equity forecast in fiscal 2018 to between 14% and 16% from the earlier estimate of 12% to 14%.

AXA lifted its dividend payout in fiscal 2018 to between 50% and 60% from the earlier estimate of 45% and 55%.

AXA reaffirmed cumulative operating free cash flow estimate in the range of €28 billion to €32 billion by fiscal 2020.

The insurer’s Emirates-based subsidiary Emirates Retakaful acquired 20% stake from the Global Capital Management, the alternative asset management subsidiary of Global Investment House.

AXA Group agreed to acquire its China-based joint venture partner AXA Tianping Property and Casualty Insurance Company for about $662 million or 4.6 billion renminbi.

Knorr - Bremse AG advanced 1.8% to €80.14 after Germany-based railway and commercial vehicles braking systems maker reported its first results after its stock market debut in October.

Revenues in the nine-month period ending in September soared 9.5% from a year ago to €5 billion.

Operating profit in the period surged 12.6% to €876 million from €778 million in the same period a year ago.

The braking systems maker said as of September 30, total order jumped 11.9% €4.45 billion from €3.98 billion.

Knorr – Bremse forecasted fiscal 2018 revenues to increase between €6.7 billion and €6.8 billion from €6.2 billion but lowered operating margin in the range of 17.5% to 18.5 from 18.1% in the same period a year ago.

Lafargeholcim Ltd dropped 1.4% to 44.97 Swiss francs after Switzerland-based cement and building materials maker confirmed fiscal 2018 sales growth between 4% and 6% and operating profit growth between 3% and 5%.

The ready-mix concretes maker forecasted fiscal 2019 net sales growth in the range of 3% to 5% and operating profit growth of about 5%.

Safran SA gained 0.3% to €108.60 after France-based aircraft, rocket engine, aerospace-component and defense products maker said its shareholders approved the merger of Zodiac Aerospace with 99.9% voting in favor of the merger.

The shareholders also approved new authorization allowing Safran to repurchase its own shares with a price not to exceed €140 per share.

""I warmly welcome the completion of the merger between Zodiac Aerospace and Safran. This consolidation opens a new chapter in the history of the group,"" said the chairman of Safran Ross McInnes.