Europe Movers: Adecco, ASOS, Associated British Foods, Hugo Boss, Schroders, Syensqo, Vestas Wind Systems

Inga Muller
05 Nov, 2024
Frankfurt

European markets traded in a tight range as investors reviewed the latest batch of underwhelming earnings. 

The central banks of the U.S., U.K., Sweden, and Norway are set to announce their rate decisions later in the week. 

The DAX index increased by 0.1% to 19,156.42; the CAC-40 index rose by 0.1% to 7,376.05; and the FTSE 100 index rose by 0.3% to 8,209.53. 

The yield on 10-year German bonds edged higher to 2.42%, French bonds inched higher to 3.16%, the UK gilts edged higher to 4.49%, and Italian bonds decreased to 3.70%.

Vestas Wind Systems declined 8.8% to DKK 124.0 after the wind turbine company lowered its estimate of operating earnings before special charges to €450 million from €500 million. 

Adecco Group declined 10.5% to CHF 24.14 after the Swiss staffing company reported third quarter results that lagged market expectations. 

Revenue in the third quarter declined 4% to €5.7 billion and net income fell 4% to €99 million from a year ago, respectively. 

The temporary and permanent staffing services provider said market conditions are challenging in France and the United States.

"Macroeconomic conditions are challenging, but volume trends have stabilized," said chief executive Denis Machuel. 

Syensqo increased 6.1% to €77.36 after the Belgian chemical company said it plans to reduce about 2% of its workforce. 

Hugo Boss AG declined 5.3% to €40.76 after the German fashion company reported a decline in third quarter net profit. 

Revenues were flat at €1.03 billion, net income declined 12% to €56 million from €63 million, and earnings per share fell 13% to 79 cents from 91 cents a year ago.  

Associated British Foods increased 0.7% to 2,305.0 pence after the parent of retailer Primark reported strong financial results for the year ending on September 14. 

Group revenue increased 2% to £20.0 billion from £19.8 billion, pre-tax profit advanced 43% to £1.9 billion from £1.3 billion, and basic earnings per share rose 44% to 193.7 pence from 134.20 pence a year ago. 

Free cash flow soared to £1.4 billion from £269 million a year ago, driven by significant growth in operating profit and improvement in working capital.

ASOS slumped 7.3% to 348.34 pence after the online fashion retailer reported a wider pre-tax loss for the fiscal year 2024.

The company's stock has plunged 86% over the last five years. 

Revenue in the year ending on September 1, 2024 dropped 16% to £2.9 billion from £3.5 billion, and pre-tax loss widened to £379.3 million from £296.7 million a year ago. 

However, free cash flow swung to an inflow £37.7 million from an outflow of £213.0 million a year ago. 

Schroders plc plunged 14.1% to 312.20 pence after the investment management company reported quarterly outflow of £2.3 billion, and the company warned more outflow are likely.