Europe Movers: Alcon, Alstom, Experian, Infineon Technologies, Siemens Energy, Tullow Oil

Inga Muller
15 Nov, 2023
Frankfurt

European stock market indexes advanced following the global rally after U.S. inflation weakened in October.

The DAX index increased 0.4% to 15,681.48, the CAC-40 index advanced 0.5% to 7,220.87, and the FTSE 100 index rose 0.9% to 7,507.89.

The yield on 10-year German bonds declined to 2.59%; French bonds traded lower to 3.16%; the UK gilts eased to 4.17%; and Italian bonds inched lower to 4.40%.

Alstom SA plunged 20.4% to €11.29 after the company struggled with rising inventories and challenges integrating recent acquisitions.

The French train maker is expected to cut as many as 1,500 jobs, lower its debt by €2 billion, and sell some of its key assets.

Chief executive Henri Poupart-Lafarge said that the company may consider raising capital through an equity offering after exhausting other alternatives.

Net sales in the first half increased 5% to €8.44 billion from €8.05 billion and net profit was €1 million compared to a loss of €21 million a year ago.  

Negative free cash flow in the period increased to €1.12 billion from €45 million a year ago, and the company said it plans to sell assets between €0.5 billion and €1.0 billion and use proceeds to lower its  debt. 

Infineon Technologies AG increased 6.7% to €32.67 after the company reported better-than-expected quarterly results in the fiscal fourth quarter and also held out for higher sales in the current quarter.

Revenue in the fiscal fourth quarter ending in September was flat at €4.2 billion, net income advanced to €753 million from €735 million, and diluted earnings per share rose to 57 cents from 56 cents a year ago.

The advanced chipmaker estimated fiscal year 2024 first quarter revenue of €3.8 billion and full-year revenue of €17 billion, compared to €16.3 billion in fiscal year 2023 and capital expenditure of €3.3 billion.

The company highlighted sustained demand for its chips in the renewable energy and mobility sectors in China, offset by weaker demand in communication, computing, and IoT applications.

Siemens Energy AG advanced 4.6% to €10.72 after the company secured €7.5 billion in project-related guarantees from the German government.

Tullow Oil plc gained 7.3% to 35.96 pence after the company lifted its 2023 cash flow outlook.

Experian plc increased 6.8% to 2,865.0 pence after the credit card data company reported an increase in first-half profit.

Alcon AG declined 6.5% to CHF 63.94 after the Swiss eye-care company reported weaker-than-expected third-quarter sales.

Revenue in the third quarter rose 8% to $2.3 billion from $2.1 billion, net income advanced to $204 million from $116 million, and diluted earnings per share rose to 41 cents from 23 cents a year ago.

The Swiss eye-care company tightened its 2023 sales range to between $9.3 billion and $9.4 billion from the previous estimate of between $9.3 billion and $9.5 billion in August.

The company also tightened its core earnings per share estimate to between $2.70 and $2.75 from the previous estimate of between $2.70 and $2.80.