Movers: Covestro, Electrolux, Eni, Mercedes Benz, NatWest, Pearson

Bridgette Randall
28 Apr, 2023
Frankfurt

Covestro AG soared 6.4% to €39.02 after the German chemical company said it plans to resume its previously announced stock repurchase program.  

First quarter sales declined 20.1% to €3.7 billion from €4.7 billion a year ago, driven by 16.8% decline in volume and 3.% fall in prices. 

The company swung to a net loss of €26 million compared to a profit of €416 million and earnings per share of (14 cents) from €2.15 a year ago. 

The German chemical company estimated second quarter EBITDA between €330 million and €430 million. 

In addition, the company revised its full-year 2023 outlook and estimated EBIT between €1.1 billion and €1.6 billion and free operating cash flow between zero and €500 million. 

Electrolux AB increased 7.8% to SEK 144,30 after the Swedish appliance maker posted a smaller-than-expected loss.

Revenue in the first quarter rose 9% to  SEK 32.73 billion from SEK 30.12 billion, and organic sales rose 2.2%.

The company maintained higher prices but sales volume declined in the quarter.

Loss in the first quarter was SEK 588 million compared to a profit of 950 million and diluted earnings per share was (SEK 2.18) compared to SEK 3.14 a year ago.  

Eni SpA declined 0.7% to €13.40 after net income in the first quarter declined 11% from a year ago on lower oil and natural gas prices.

Revenue in the first quarter declined 15% to €27.2 billion from €32.1 billion and net income attributable to shareholders fell 33% to €2.4 billion from €3.6 billion a year ago. 

In the first quarter, Brent crude oil price dropped 20% to $81.27 a barrel from $101.40 and spot natural gas price fell 42% to €606 from €1,043 kcm. 

The company recommended a dividend of €0.94 a share and plans to increase its stock repurchase program by €2.2 billion to €3.5 billion. 

Mercedes Benz Group AG declined 1% to €69.37 after the vehicle maker reported a 12% rise in its first quarter profit.

Revenue in the first quarter increased 8% to €37.5 billion from €34.9 billion and earnings before taxes and interest advanced to €5.5 billion from €5.2 billion. 

Shift to electric vehicles continued, battery electric car sales surged 89% and van sales soared 22%.

Moreover, the luxury vehicle maker warned that recent turmoil in the banking sector in the U.S. and Europe may negatively impact future sales. 

The free cash flow of the industrial business increased to €2.2 billion from €1.2 billion a year ago. 

Beginning March, Mercedes Benz announced a stock repurchase plan of €4.0 billion to be completed over two years. 

NatWest Group Plc declined 4.5% to 260.0 pence after the UK-based bank reported weaker-than-expected outlook.

Pearson Plc rose 3.3% to 882.80 pence after the U.K.-based publishing company reported quarterly results.

In its trading update, the company did not disclose any meaningful sales, earnings or cash flow data and said it is on track to achieve its full-year 2023 "guidance." 

The publishing company said it plans to launch a stock repurchase program of £300 million in the second half of 2023.