Europe Movers: Adidas, Air France, Deutz, Glencore, HSBC, Hargreaves, Mercedes-Benz, Stellantis

Inga Muller
30 Apr, 2024
Frankfurt

Market indexes in Europe lacked direction after inflation in the currency union stalled and GDP in the region rose at a faster-than-expected pace in the first quarter. 

The DAX index decreased by 0.4% to 18,041.53; the CAC-40 index fell by 0.2% to 8,047.41; and the FTSE 100 index inched higher by 0.4% to 8,176.98. 

The yield on 10-year German bonds edged up to 2.54%; French bonds inched lower to 3.05%; the UK gilts edged lower to 4.31%; and Italian bonds inched lower to 3.85%.

Mercedes-Benz Group declined 3.9% to €71.72 after the German luxury automaker reported a 30% fall in annual operating earnings in the first quarter. 

Volkswagen declined 2.2% to €118.10 after the German automaker reported a 20% decline in operating profit in the first quarter.

Stellantis dropped 3.2% to €22.48 after the Franco-Italian-American automaker reported a 12% decline in revenue in the first quarter. 

Vonovia increased 5.1% to €27.46 after the German real estate group reiterated its full-year outlook despite a decline in first-quarter profit. 

Air France KLM fell 3.7% to €9.70 after the international carrier reported a wider operating loss in the first quarter. 

Adidas revenue decreased 1.3% to €229.20 after the German athletic shoemaker unexpectedly lifted its annual profit outlook. 

Revenue in the first quarter increased 4% to €5.5 billion from €5.3 billion, and operating profit soared to €336 million from €60 million a year ago. 

Gross margin improved sharply by 6.4 percentage points to 51.2% from 44.8%, driven by tighter cost management and an increase in the sale of higher-margin products. 

Net income from continuing operations swung to a profit of €171 million from a net loss of €24 million, and basic earnings per share rose to 96 cents from a loss of 18 cents in the year ago period, respectively. 

The company estimated full-year revenue in 2024 to increase by a mid-to-high single-digit rate and operating profit in the year to be as high as €700 million. 

Deutz AG decreased 3% to €5.63 after the engine maker said revenue in the first quarter  declined 10% to €454.7 million from €507 million, operating income plunged 35.3% to €23.8 million from €36.8 million, and earnings per share fell to 13 cents from 24 cents a year ago. 

HSBC gained 4.5% to 471.90 pence after the UK and China-based bank reported better-than-expected quarterly profit and announced its plan to expand its stock repurchase plan by £3 billion.

Pre-tax income in the quarter declined 1.6% to $12.7 billion, and the bank announced cash dividends of 10 cents per share. 

Chief executive Noel Quinn unexpectedly announced his plans to step down after spending nearly five years in the leadership role. 

Hargraves Lansdown rose 4.7% to 822.40 pence after the investment management company said assets under management rose by £7.5 billion to £149.7 billion in the first quarter. 

Whitbred PLC rose 3.3% to 3,141.72 pence after the parent company of Premier Inn announced its plan to eliminate 1,500 jobs in the U.K. 

Glencore PLC decreased by 0.3% to 471.90 pence after the mining company reported a decline in copper and coal output in the first quarter.