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Market Update

Airbus, Bombardier in Jetliner Partnership; Pearson Rises on Improved Outlook

Author: Sarla Buch
Last Update: 11:34 AM EDT October 17 2017

4:00 PM Frankfurt – Airbus agreed to buy a majority stake in CSeries passenger jetliner of Canada-based Bombardier. Merlin shares tumbled on profit warning. Pearson jumped on improved profit forecast. Remy Cointreau said sales advanced 6%. Sartorius lowered group revenues forecast.

In London trading, FTSE 100 index rose 16.81 or 0.2% to 7,543.78 and in Frankfurt the DAX index gained 21.45 or 0.2% to 13,025.32.

In Paris, CAC 40 index increased 13.66 or 0.3% to 5,376.53.

Airbus SE jumped 3.8% to €80.03 after the Netherlands-based aerospace and defense products maker agreed to acquire majority stake in Canada-based Bombardier Inc’s CSeries passenger jetliner.

The Investment Agreement contemplates Airbus acquiring a 50.01% interest in C Series Aircraft Limited Partnership with agreements for sales and marketing support services.

“This partnership should more than double the value of C Series program and ensures our remarkable game-changing aircraft realizes its full potential,” said president of Bombardier Alain Bellemare.

The transaction is expected to close in the second-half of 2018.

Merlin Entertainments Plc plunged 19.9% to 359.90 pence after the U.K.-based resort, theme parks and Madame Tussauds museum operator sales in the third-quarter ending on October 7 jumped 12% despite terror attacks and unfavorable weather.

The entertainment services provider forecasted fiscal 2017 sales may be flat compared to fiscal 2016 and operating profit in the range of £470 million to £480 million.

Merlin said Madame Tussauds Delhi - the first attraction in India - is expected to open by the end of the year and LEGOLAND New York is now expected to open in 2020, after final formalities with an estimated cost of £262 million or $350 million.

“Whilst it is too early to predict outlook for 2018, it is likely that the recent trends experienced in London will persist the foreseeable future,” said chief executive officer Nick Varney.

Pearson Plc soared 5.6% to 656.50 pence after the U.K.-based educational materials publisher said sales in the nine-month ending on October 5 fell 2%.

However, the publisher had lifted full-year operating profit forecast in the range of £576 million to £606 million from the earlier estimate of £546 million or £606 million and earnings per share to increase between 51 pence and 54 pence from the previously forecasted range between 45.5 pence and 52.5 pence.

Remy Cointreau slipped 1.3% to €106.15 after France-based wines and spirits maker said sales in the first-half ending in September jumped 6% from a year ago to €544.4 million.

Sartorius AG declined 5.9% to €73.40 after Germany-based pharmaceutical and laboratory equipment supplier reported group revenues in the nine-month period ending in soared 8.6% from a year ago to €1.04 billion but profit margin fell 24.8% from 25% in the same period a year ago.

In the fiscal 2017, Sartorius lowered group revenues forecast growth of about 9% from the earlier estimated range between 12% and 16%.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc