Europe Movers: Bayer, Deutsche Telekom, Engie, Rolls Royce, ThyssenKrupp, Telefonica, Vodafone Group

Bridgette Randall
11 May, 2023
Frankfurt

Energy and mining companies declined after China reported near zero inflation confirming uneven recovery and weak demand for manufactured goods. 

Wholesale deflation deepened for the seventh month in a row in April and consumer prices rose 0.1% in the month.  

Anglo American, Glencore and Antofagasta declined between 2% and 3% and BP Plc and Shell Plc dropped between 1% and 2%. 

Vodafone Group Plc decreased 1.5% to 91.34 pence and the company announced an expanded partnership with Emirates Telecommunications. 

Deutsche Telekom AG increased 1.2% to €21.51 after the German telecom group slightly lifted its 2023 profit estimate. 

Bayer AG decreased 6.8% to €54.31 after the German drug pesticide maker estimated 2023 earnings to be near the low end of its estimate. 

ThyseenKrupp AG declined 2.2% to €6.52 after the German steel maker swung to a loss in its latest quarter and reported a decline in orders. 

Sales in the fiscal second quarter declined to €10.11 billion from 10.6 billion and new orders declined to €10.2 billion from €13.6 billion and adjusted EBIT dropped to €205 million from €802 million a year ago.  

The company blamed a sharp decline in operating earnings on higher energy and operating costs and lower steel prices in the quarter.  

Engie SA increased 1.1% to €14.84 after the French utility company reported a rise in first quarter net income. 

Rolls Royce Holdings PLC decreased 5.5% to 147.78 pence after the aerospace company and defense contractor said it is on track to meet its annual target. 

The struggling aerospace company is in the middle of a restructuring and the new chief executive Tufan Erginbilgic has implemented deep cost cuts as a part of his turnaround plan. 

Telefonica SA declined 3.5% to €3.89 after the Spanish telecom company reported a 58% decrease in first quarter income on higher debt servicing expenses. 

Revenue in the first quarter increased 6.7% to €10.0 billion and net income declined 57.9% to €298 million and free cash flow declined 11.6% to €454 million. 

The company revised its full-year 2023 revenue organic growth estimate to 4.9% from the previous estimate of "low single digit growth" and lowered its capex to sales ratio to 11.3% from the previous target of 14%.