Europe Movers: Deutsche Bank, Julius Baer, Kone, Roche, Sanofi

Inga Muller
03 Feb, 2025
Frankfurt

The possibilities of higher trade barriers for the EU's exports to the U.S. come at a critical time as the region is struggling to expand its economic activities and reeling under stiff competition from China.

The DAX index decreased by 1.6% to 21,378.03; the CAC-40 index dropped 1.5% to 7,831.65; and the FTSE 100 index declined by 1.2% to 8,569.99.

The yield on 10-year German bonds inched lower to 2.43%, French bonds declined to 3.15%, the UK gilts moved down to 4.54%, and Italian bonds edged higher to 3.56%.

Automobile makers and advanced semiconductor equipment makers led the decliners across Europe in Monday's trading. 

All leading automobile makers in the European Union declined, led by Mercedes-Benz Group AG, which fell 4.3% to €56.39; BMW plunged 4% to €75.42; Volkswagen AG dropped 5.8% to €95.55; and Stellantis NV fell 6% to €12.19.

Among leading tech equipment companies, Infineon Technologies AG decreased 4.2% to €30.74, and ASML Holding dropped 2.7% to €702.80.

Julius Baer Gruppe AG dropped 11% to CHF 56.70 despite the Swiss wealth management company posting strong fiscal year 2024 results, boosted by a substantial tax release.

The Swiss asset management company's new chief executive announced plans to trim its workforce by 5% as the company looks for ways to lower its operating costs. 

Fiscal 2024 operating income jumped to CHF 3.86 billion from CHF 3.24 billion, net profit surged to CHF 1.02 billion from CHF 453.4 million, and earnings per diluted share rose to CHF 4.97 from CHF 2.21 a year ago.

Total assets increased to CHF 105.1 billion from CHF 96.79 billion a year earlier.

Operating income in the Americas decreased to CHF 51 million from CHF 63 million, while income advanced in other regions.

Earlier in January, the company agreed to sell its domestic Brazilian wealth management business to Banco BTG Pactual S.A. for CHF 91 million in a deal expected to close in the first quarter of 2025.

Julius Baer is extending its cost reduction program for 2023-2025, aiming at a CHF 110 million gross general expense and personnel cost savings on a run-rate basis by the end of 2025.

The costs to achieve these savings are estimated at approximately CHF 55 million, and they will be booked in 2025.

The company proposed a dividend of CHF 2.60 per share to be paid on April 16 and matched the rate in the previous year.

Kone Oyj dropped 0.9% to €50 after the Finnish elevator engineering company posted lower earnings in the fourth quarter ending in December.

Sales jumped 5.9% to €2.98 billion from €2.81 billion; net income declined 11.5% to €244.5 million from €276.3 million, and earnings per share fell 11.2% to 47 cents from 53 cents a year ago.

The annual growth in new orders declined, driven by the weakness in China, but new orders in the other regions were more stable.

Greater China comprised 23% of total sales, compared to a 27% share a year earlier, and quarterly sales in the region declined 13.3% to €620.5 million from €715.3 million a year ago.

Sales in the new building solutions segment declined 2.2%, while service and modernization sales increased by 11.2% and 13.6%, respectively.

Kone holds a 19.9% stake in Toshiba Elevator and Building Systems Corporation.

The company’s board proposed a dividend of €1.80 to be paid on outstanding class A and class B shares beginning on March 14 and resulting in a total amount of €931.36 million.

Furthermore, the board proposed that the distributable profits of €2.28 billion be retained and carried forward.

Deutsche Bank AG gained 0.2% to €18.94 after Germany’s largest bank reported an increase in revenue in the fourth quarter ending in December, but profit slumped as a result of a higher provision for legal expenses and restructuring costs.

Revenue climbed 8% to €7.2 billion from €6.7 billion; profit slumped to €106 million from €1.3 billion, and earnings per diluted share declined to 15 cents from 67 cents a year ago.

For fiscal year 2025, the company estimated revenue growth to range between 5.5% and 6.5% to approximately €32 billion.

The bank plans to propose a cash dividend of 68 cents per share, up from 45 cents per share last year, and the company approved a share buyback of €750 million year to date.

Roche Holding AG gained 0.3% to CHF 286 after the Swiss pharmaceutical company reported sales growth in fiscal 2024, but profit declined.

Revenue increased 3% to CHF 60.5 billion from CHF 58.7 billion, net income slumped 26% to CHF 9.19 billion from CHF 12.36 billion, and earnings per diluted share fell to CHF 10.31 from CHF 14.31 a year ago.

Pharmaceutical sales increased by 8%, and diagnostics sales rose by 4%, while excluding COVID-19-related products, which grew by 8%, driven by higher demand for immunodiagnostic products.

The company raised its dividend per share to CHF 9.70 from CHF 9.60 a year earlier.

Sanofi S.A. gained 0.75% to €104.40 after the French pharmaceutical company beat fourth-quarter earnings estimates, driven by improved pipeline momentum.

Revenue increased 9.1% to €10.56 billion from €9.69 billion, net income jumped to €695 million from a net loss of €558 million, and earnings per diluted share rose to 54 cents from a loss of 44 cents a year ago.

Gross profit jumped 5.4% to €7.84 billion from €7.44 billion a year earlier.

The company’s board proposed a dividend of €3.92 for 2024, to be approved by shareholders on April 30, and in 2025 Sanofi plans to buy back shares worth €5 billion.