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Market Update

Airbus Net Hit On Military Plane Charges; Bayer Faces Monsanto Delays


Author: Sarla Buch
ticker.com
Last Update: 10:50 AM ET February 22 2017

4:00 PM Frankfurt Airbus net tumbled 63% and the military contractor plans to renegotiate with European governments. Accor net jumped 9% after sales in France rebound. Bayer said it may face regulatory delays in completing Monsanto deal. Fresenius net surged 21%. Lloyds Banking net soared.

In London trading, FTSE 100 index edged up 6.33 to 7,281.16 and in Frankfurt the DAX index rose 6.03 to 11,973.52.

In Paris, CAC 40 index slid 5.70 to 4,883.06.

Airbus Group SE slipped 0.9% to 66.59 after the Netherlands-based aerospace and defense products maker said revenues in the year ending in December increased 3% from a year ago to 66.6 billion.

Net income in the year tumbled 63% from a year ago to 995 million compared to 2.7 billion and diluted earnings per share slumped to 1.29 from 3.43.

Free cash flow in the year dropped 2% to 1.2 billion and as of 2016 year-end order intake slumped 15% to 134.5 billion from 159 billion in the same period a year ago.

Revenues in commercial aircraft segment jumped 7% but revenues in the defense and space business declined 9%.

Net income in the quarter was hit by 1.2 billion charge on the beleaguered A400M military transportation plane and the company plans to renegotiate contract with the European governments.

In fiscal 2017, Airbus is scheduled to deliver more than 700 commercial aircraft and free cash flow is expected to match 2016 flow.

Accor SA declined 3.2% to 37.40 after France-based hotels operator reported revenues in the year increased 0.9% from a year ago to 5.6 billion.

Net profit in the year jumped 8.6% from a year ago to 265 million compared to 244 million.

Bayer AG fell 1.8% to 106.95 after Germany-based diversified conglomerate said sales in the year ending in December advanced 1.5% from a year ago to 46.8 billion.

Net income in the year jumped 10.2% from a year ago to 4.5 billion compared to 4.1 billion and diluted earnings per share increased to 5.44 from 4.97.

The chemical conglomerate said its crop sciences business is expected to show modest growth in 2017 as it completes its $66 billion takeover of Monsanto Co.

However the company cautioned that the merger may face delays as the regulators needs seek more information.

Fresenius SE & Co KGaA gained 0.9% to 76.52 after Germany-based health care services provider said net revenues in the year ending in December soared 7% from a year ago to $17.9 billion.

Net income in the year surged 21% from a year ago to $1.2 billion compared to $1 billion and diluted earnings per share increased to $1.27 from $1.04.

The health care services provider forecasted fiscal 2017 sales growth between 15% and 17% and net income to jump between 17% and 20%.

Lloyds Banking Group Plc jumped 3.8% to 69.32 pence after the U.K.-based financial services provider reported total revenues in the year ending in December slid 1% from a year ago to 17.5 billion.

Net profit in the year surged 163% from a year ago to 2.5 billion compared to 956 million and diluted earnings per share jumped to 2.9 pence from 0.8 pence.

The bank said net profit in the year quadrupled after cost-cutting and the operating costs continued to drop offsetting a slight fall in revenues.

Lloyds said pretax profit in the year more than doubled to 4.2 billion from 1.6 billion in the fiscal 2015.

The board recommended paying total dividend of 2.55 pence per share, an increase of 13% from a year ago and the board also recommended a special dividend of 0.5 pence per share.

Weir Group Plc slumped 2.2% to 1,977 pence after the U.K.-based engineering equipment provider stated revenues in the year ending in December fell 2% from a year ago to 1.8 billion.

Net in the year swung to profit from a year ago to 38.3 million compared to a loss of 178.7 million and diluted earnings per share swung to 20 pence from diluted loss per share of 73.1 pence.

However, Weir said pretax profit in the year plunged 22% in 2016 to 170 million from 219 million in a year ago period.

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