S&P 500 2,441.20 17.28
Gold$1,224.80 $5.30
Nasdaq 6,253.81 61.92
Crude Oil $60,490.00      $-1570.00
Market Update

Dialog Tumbles on Apple Worries, Rio Tinto Completes Australian Coal Mine Sale

Author: Sarla Buch
Last Update: 12:06 PM EDT June 01 2018

4:00 PM Frankfurt – Dialog Semiconductor tumbled on the worries that Apple may cut power chip orders. Elekta net surged but lowered fiscal operating margin. Laurent Perrier profit declined on weak sales. Rio Tinto completed the sale of its 75% stake in coal project in Australia.

In London trading, FTSE 100 index rose 26.89 or 0.4% to 7,705.09 and in Frankfurt the DAX index soared 113.79 or 0.9% to 12,715.63.

In Paris, CAC 40 index jumped 73.23 or 1.4% to 5,472.54.

Dialog Semiconductor Plc tumbled 15.7% to €15.80 after the UK-based smart-phone power chip maker warned that Apple Inc had reduced its power management chip orders by 30% for 2018 but it will continue to develop advanced technology to meet Apple’s requirements.

Earlier Apple said it plans to build its own power management chips as sales in the smart-phone segment are slowing worldwide.

According to a statement released after Thursday’s market close, Apple plans to order fewer chips for new phones, and Dialog estimated fiscal 2018 revenue to fall 5% to $1.5 billion.

Elekta AB fell 1.6% to 105.80 Swedish kronor after Sweden-based radiation therapy equipment maker reported net sales in the year ending in March soared 8% from a y ear ago to 11.3 billion kronor.

Net income in the year surged 1.1 billion kronor from 126 million kronor in the same period a year ago and diluted earnings per share surged to 2.88 kronor from 0.33 kronor.

Elekta forecasted fiscal 2018 revenue growth of about 7% but the equipment maker lowered operating margin forecast of about 20% from the earlier estimate of more than 20%.

Laurent Perrier SA edged up 0.1% to €93 after France-based champagne and wines maker said revenues in the year ending in March slumped 2.1% from a year ago to €225.7 million.

Net profit in the period declined 11.5% to €20.6 million from €23.2 million in a year ago period and diluted earnings per share dropped to €3.48 from €3.93.

The champagnes maker said operating profit in the year plummeted 5.3% to €38.9 million from a year ago period.

""In context of market volume, Laurent maintains a good performance of its operating income,” said chairman of the executive board Stephane Dalyac.

Chairman Dalyac added growth with drive by higher end product and the strength in price and volumes.

Rio Tinto Plc gained 1.3% to 4,296 pence after the U.K.-based metals and mining producer today said it had completed the sale of its 75% stake in coal project of Queensland, Australia to Whitehaven Coal Ltd for about $200 million.

However, the sale of Rio’s stake in the Kestrel and Hail Creek coal mines and Valeria coal development project are expected to complete in the second-half of this year.

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