Ashtead, Aurubis Report Strong Results, BPM Sells

Sarla Buch
11 Dec, 2018
New York City

Ashtead beats profit estimates largely because of strong demand for its equipment rental business in the U.S. Banco BPM agreed to sell its

[R]4:00 PM Frankfurt – Ashtead beats profit estimates largely because of strong demand for its equipment rental business in the U.S. Banco BPM agreed to sell its €7.8 bad loans business. WPP jumped on new £300 million restructuring plan.[/R]

In London trading, FTSE 100 index jumped 125.43 or 1.9% to 6,846.97 and in Frankfurt the DAX index surged 237.51 or 2.2% to 10,859.58.

In Paris, CAC 40 index soared 98.69 or 2.1% to 4,841.07.

Ashtead Group Plc jumped 4.7% to 1,681.50 pence after the U.K.-based industrial equipment rental supplier reported revenues in the first-half ending in October soared 19% from a year ago to £2.3 billion.

Net income in the period surged 43.8% to £461.5 million from £320.9 million in the same period a year ago and diluted earnings per share jumped to 94.7 pence from 64.2 pence.

The equipment rental services provider said the U.S.-based Sunbelt business earned additional revenue after stronger demand for clean-up the country after Hurricanes Florence and Michael.

Ashtead forecasted fiscal 2018 results will ahead of prior expectations.

Aurubis AG gained 0.6% to €43.71 after Germany-based copper producer reported revenues in the year ending in October soared 6% from a year ago to €11.7 billion.

Net profit in the year jumped 12.3% to €265 million from €236 million in a year ago period and diluted earnings per share dropped to €5.87 from €5.21.

Aurubis forecasted fiscal 2018 operating profit moderately below the prior-year result due to unscheduled maintenance shutdowns.

Banco BPM SpA advanced 3.8% to €2.15 after Italy-based bank said it had signed binding agreement to sell its €7.8 bad loans business along with a stake in its debt recovery business to Credito Fondiario and the U.S.-based fund operator Elliott.

The final transaction in expected to complete by the end of second-quarter of 2019.

WPP Plc soared 5.1% to 846.40 pence after the U.K.-based advertising and public relations services provider said it will spend £300 million or $377 million in the next three years to restructure the existing businesses.

WPP estimated the restructuring is expected to save £275 million by the end of 2021 and reinvest approx half of savings in the period between 2019 and 2021 and operating profit margin of about 15% by the end of 2021.

WPP reaffirmed fiscal 2018 net sales forecast to drop between 0.5% and 1% and operating margin to decline 1% to 1.5%.