Europe Movers: Bayer, Eutelsat, Ferrexpo, Holcim, Philips, Ryanair, Wacker Chemie

Inga Muller
29 Jan, 2024
Frankfurt

European markets hugged the flatline ahead of the rate decisions from the Bank of England and the U.S. Federal Reserve.

The DAX index decreased 0.5% to 16,874.0, the CAC-40 index rose 0.01% to 7,634.92, and the FTSE 100 index inched higher by 0.1% to 7,642.72.

The yield on 10-year German bonds edged down to 2.23%; French bonds inched lower to 2.72%; the UK gilts edged lower to 3.91%; and Italian bonds inched lower to 3.75%.

Ryanair Holdings declined 1.8% to €18.17 after the deep discount airline trimmed its profit estimate for the fiscal year ending in March.

Holcim AG increased 3.2% to CHF 66.18 after a Swiss construction material company announced plans to spin off its North American business through a listing in New York.

The North American operation generated $11 billion in revenue and earnings before interest and taxes of $2 billion in 2023.

Post-spinoff, Holcim revenue in 2023 is estimated at $17 billion, with $2 billion of free cash flow.

Ferrexpo decreased 3.1% to 83.19 pence after a court of appeals in Ukraine affirmed claims of $125 million against the iron ore pellet producer.

Philips NV plunged 6.5% to €19.70 after the Dutch medical device maker said it would halt new sales of sleep machines following a series of recalls.

Group sales in fiscal year 2023 increased 7% to €18.2 billion in 2023 and advanced 3% to €5.1 billion in the fourth quarter.

Income from operations swung to a loss of €115 million in 2023 and a profit of €24 million in the fourth quarter, including charges of €363 million connected with the Respironics consent decree.

The company reached a settlement with the U.S. Food and Drug Administration regarding a mass recall of its Respironics products, including ventilators and breathing devices, in 2021.

Philips may take as long as five to seven years to meet the regulatory requirements before the company is able to sell new products in the U.S. 

The company is still facing an investigation by the U.S. Department of Justice into how it handled the mass recall and numerous lawsuits from patients claiming their health has suffered due to the use of sleep apnea and breathing devices.

The medical device maker retained its 85-cent stock dividend for shareholders.

Philips expects to deliver 3% to 5% comparable sales growth and an adjusted EBITA margin of 11% to 11.5% in 2024.

Wacker Chemie declined 1.1% to €99.34 after the chemical company reported a 60% decline in its core earnings in 2023.

Bayer AG declined 4.5% to €30.76 after the company was ordered to pay $2.25 billion by a Pennsylvania court to a plaintiff who developed cancer due to exposure to the company's Roundup weed killer.

The company plans to appeal the decision.

Eutelsat Communications SA dropped 14.6% to €3.51 after the company lowered its annual revenue outlook.

The company revised its fiscal 2024 revenue in a range of €1.25 billion to €1.3 billion from its previous estimated range of €1.32 billion to €1.42 billion.

The company lowered its adjusted EBITDA in a range of €650 million to €680 million from its previous range between €725 million and €825 million.

The company attributed the revenue shortfall to the delay in ground network construction and the shift in revenue mix towards the sale of user terminals with lower margins.