Europe Movers: Orange, Philips, Schaeffler, Telefonica, Volkswagen

Bridgette Randall
25 Jul, 2022
Frankfurt

European markets lacked direction in volatile trading as investors digest another batch of corporate earnings in the region. 

The DAX index declined 0.3% to 13,210.46, the CAC-40 index inched up 0.3% to 6,237.55, and the FTSE 100 index increased 0.4% to 7,306.30. 

Volkswagen AG declined 3.9% to 183.0 euros after the automaker said that the chief executive Herbert Diess will be replaced by Oliver Blume, head of Porsche. 

In another management shake up, the company appointed chief financial officer Arno Antlitz as chief operating officer.

Under Diess, VW accelerated its investment and migration to electric vehicle production and in 2021 sold 450,000 units, surpassing Tesla sales in Europe. 

Schaeffler AG declined 1.2% to 5.52 euros and the German industrial products maker signed an agreement with an affiliate of Triton Fund V for the acquisition of the Ewellix Group for 582 million euros and assume debt of 120 million euros. 

In 2018, Triton acquired the linear actuators maker Ewellix Group from the Swedish bearings maker SKF. 

Philips AG declined 7.7% to 20.08 euros after the medical equipment and systems maker reported sharply lower-than-expected earnings. 

Revenues in the second quarter declined 1% or 7% on a comparable basis to 4.2 billion euros. 

In the quarter, the company swung to a net loss of 20 million euros from 153 million profit a year ago. 

Sales in Western Europe declined 6% to 873 million euros and in North America increased 11% to 1.7 billion euros. 

Telefonica S.A. increased 1.9% to 4.42 euros after the company agreed to sell its rural fiber network in Spain to a consortium for around 1 billion euros. 

Orange S.A. increased 1.5% to 10.27 euros after the French telecom operator agreed to merge its unit in Spain with MasMovil. 

The equally-owned joint venture values Orange's Spain business at 7.8 billion euros and Masmovil at 10.9 billion euros.