Europe Movers: Casino Guichard, Fresenius, Kingfisher, Sage Group, ThyssenKrupp

Inga Muller
22 Nov, 2023
Frankfurt

European markets advanced, the euro hovered near its three-month high, and the crude oil price was in focus ahead of the OPEC+ meeting later this weekend.

The DAX index increased 0.3% to 15,941.79, the CAC-40 index rose 0.3% to 7,246.18, and the FTSE 100 index fell 0.2% to 7,470.86.

The yield on 10-year German bonds increased to 2.58%; French bonds traded higher to 3.14%; the UK gilts increased to 4.14%; and Italian bonds inched higher to 4.33%.

Sage Group jumped 11.1% to 1,114.0 pence after the UK-based software firm launched a stock repurchase plan and reported strong revenue growth in its latest fiscal year.

Kingfisher plc declined 6.2% to 216.30 pence after the home improvement retailer lowered its profit outlook for the second time in three months.

Casino Guichard Perrachon SA decreased 0.3% to €0.81 after the grocery retailer estimated 2023 losses in its core French business.

ThyssenKrupp AG rose 6.7% to €7.07 after the German industrial engineering and steel company estimated profit in the fiscal year 2024.

The company reported a net loss of €2 billion in the fiscal year 2023 compared to €1.2 billion in income in the previous year, primarily due to impairment losses in its steel business in Europe.

Sales in the year declined to €37.5 billion from €41.1 billion, and adjusted operating earnings fell to €703 million from €2.06 billion a year ago.

The company proposed to pay a cash dividend of 15 euro cents, reflecting a free cash flow improvement to €363 million from an outflow of €476 million.

Fresenius Medical Care increased 0.4% to €27.71 after the dialysis service provider lifted its annual outlook.

Revenue in the third quarter declined 3% to €4.9 billion from €5.03 billion, net income fell to €84 million from €230 million, and net income dropped to 29 cents from 7 cents a year ago.

The company reiterated its 2023 revenue to grow at a low to mid-single-digit percentage rate from €19.4 billion in 2022.

The company raised its 2023 operating earnings to grow at a low single-digit percentage rate from €1.54 billion in 2022, from the previous outlook of flat to a decline in the low single-digit percentage rate.

The German company also said it had resolved its legal dispute with the U.S. Department of Defense and finalized its settlement for payment of dialysis services provided under the Tricare program to members of military service, their dependents, and retirees.

The company sought to receive payment for services provided under the Tricare program on or before January 11, 2023.

As a consequence of the settlement agreement, Fresenius anticipates a positive impact on operating income of €175 million in the fourth quarter.