ABB Agreed to Sell Power Grids Business to Hitachi, Asos Plunges

Sarla Buch
17 Dec, 2018
New York City

Asos Plc plunged nearly 40% after the U.K. based online retailer lowered growth outlook. All for One Steeb beats earnings estimates. ABB plan to sell its 80.1% in its power grids business to Japan-based Hitachi.

[R]4:00 PM Frankfurt – Asos Plc plunged nearly 40% after the U.K. based online retailer lowered growth outlook. All for One Steeb beats earnings estimates. ABB plan to sell its 80.1% in its power grids business to Japan-based Hitachi.[/R]

In London trading, FTSE 100 index slumped 69.06 or 1% to 6,776.11 and in Frankfurt the DAX index declined 136.98 or 1.3% to 10,728.79.

In Paris, CAC 40 index dropped 51.52 or 1.1% to 4,802.17.

Asos Plc tumbled 39.1% to 2,550 pence after the U.K.-based online fashion and cosmetic retailer said total revenues in the first-quarter ending in November surged 14% from a year ago to £650 million.

Asos lowered fiscal 2019 sales growth forecast to about 15% from the earlier estimate of 20% to 25% and operating profit to about 2% from the earlier estimate of 3% and gross margins to about 150 basis percentage points from the earlier estimate of flat to 49.9% and reduced capital expenditure of about £200 million.

All for One Steeb AG increased 1% to €49.20 after Germany-based SAP full-service provider said revenues in the year ending in September soared 11% from a year ago to €332.4 million.

Net profit in the period jumped 5% to €13.7 million from €13.1 million in a year ago period and diluted earnings per share increased to €2.82 from €2.63.

The information technology provider forecasted fiscal 2019 revenues in the range of €345 million and €355 million and operating profit in the range of €13 million from €18 million.

ABB Ltd dropped 1.2% to 19.36 Swiss francs after Switzerland-based robotics, power and heavy electrical equipment maker plans to sell its 80.1% of its power grids business to Japan-based Hitachi, Ltd for $11 billion and will return net proceeds of $7.6 billion to the shareholders.

However, ABB will retain 19.9% equity stake in the joint venture with headquartered in Switzerland.

The transaction is expected in the first-half of 2020.

Ingenico Group SA plunged 8.7% to €52.40 after France-based seamless payment services provider said the company has terminated talks with private equity groups for a possible transaction.