Bayer Sets Ambitious Growth in 2022; DS Smith, Vonovia Profit Surge

Sarla Buch
28 Jan, 2019
New York City

Bayer forecasted sales growth in fiscal 2022. BT will remove equipment of Huawei from its 4G network within two years. DS Smith profit jumped and plans sale of plastics unit. Latecoere tumbled after weak fiscal 2019 outlook. Vonovia reported better-than-expected results.

In London trading, FTSE 100 index declined 163.64 or 2.4% to 6,756.11 and in Frankfurt the DAX index plummeted 271.88 or 2.4% to 10,928.36.

In Paris, CAC 40 index plunged 116.02 or 2.4% to 4,828.34.

Bayer AG, declined 2.9% to €63.71 after Germany-based pharmaceutical and life sciences products maker forecasted fiscal 2022 revenues growth of 4% and operating profit growth of about 9% and between 2019 and 2022, free cash flow to jump 18% to €23 billion.

Bayer also forecasted fiscal 2022 operating profit growth in Crop Science business to exceed 30%, operating profit in pharmaceuticals segment to surge more than 35% and operating profit in consumer health business to reach 24%.

Bayer also forecasted fiscal 2018 earnings per share in the range of €5.70 to €5.90 and in the fiscal 2019 earnings per share of about €6.80 and earnings per share in the 2022 of about €10.

Bayer said its net debt is estimated to remain stable at around €36 billion in 2019 and significantly drop between €26 billion and €28 billion by 2022.

BT Group Plc, dropped 1.4% to 257.10 pence after Financial Times reported that the U.K.-based telecom and broadband services provider will remove equipment of Huawei Technologies Co from its core 4G network within two years.

BT also said it had excluded Huawei from bidding for contracts to supply equipment for its core 5G network.

DS Smith Plc, slumped 3.8% to 313.78 pence after the U.K.-based corrugated and plastic packaging products maker reported revenues in the first-half ending in October soared 15% from a year ago to £3.1 billion.

Net income in the period surged 21.5% to £130 million from £107 million in a year ago period and diluted earnings per share increased to 9.4 pence from 9 pence.

Separately, the packaging products manufacturer plans to sell its plastics division.

Latecoere SA, tumbled 18.1% to €2.61 after France-based aerospace equipment maker forecasted fiscal 2019 significant organic revenue growth but low single-digit recurring operating margin and negative operating free cash flow.

Vonovia SE, increased 0.4% to €41.72 after Germany-based residential property developer reported revenues in the nine-month period ending in September soared 11.4% from a year ago to €1.2 billion.

Net profit in the period surged 17.9% to €1.3 billion from €1.1 billion in a year ago period and diluted earnings per share jumped to €2.64 from €2.36.

Vonovia forecasted fiscal 2019 fund from operation, including BUWOG between €1.14 billion and €1.19 billion and investments to increase in the range of €1.3 billion to €1.6 billion.