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Market Update

Low Rates Sink Generali Net, Siemens to Spin Off Healthcare Unit


Author: Sarla Buch
ticker.com
Last Update: 11:01 AM ET November 10 2016

4:00 PM Frankfurt – 3i profit surged five-fold. Continental net tumbled 41%. Electrolux agreed to buy South Africa-based Kwikot for 2 billion kronor. The insurer Generali said net declined 6% after weak income in property and casualty business. National Grid net plunged 52%. Siemens net declined.

In London trading, FTSE 100 index declined 50.50 or 0.7% to 6,860.91 and in Frankfurt the DAX index gained 53.17 or 0.5% to 10,700.03.

In Paris, CAC 40 index increased 34.26 or 0.8% to 4,577.64.

3i Group Plc declined 6.1% to 615.50 pence after the U.K.-based investment group said total profit in the first-half ending in September surged five-fold from a year ago to £1 billion and diluted earnings per share jumped to 106.2 pence from 16.2 pence.

Continental AG 5.2% to €160.35 after Germany-based tires maker reported revenues in the third-quarter ending in September jumped 3.8% from a year ago to €9.98 billion.

Net profit in the quarter tumbled 40.5% from a year ago to €378.5 million compared to the €635.7 million and diluted earnings per share dropped to €1.90 from €3.18.

Continental estimated revenues in the year of approx €41 billion and operating profit margin more than 10.5%.

Electrolux AB fell 0.4% to 218.60 Swedish kronor after Sweden-based consumer and industrial goods maker agreed to acquire South Africa-based water heater maker Kwikot Group for about 2 billion kronor.

Assicurazioni Generali SpA gained 0.6% to €11.82 after Italy-based financial services provider said gross written premiums in the nine-month ending in September slumped 2.8% from a year ago to €52.1 billion.

Net profit in the quarter declined 5.9% from a year ago to €1.6 billion compared to the €1.7 billion and diluted earnings per share dropped to €1.90 from €3.18.

The insurance giant said drop in profit was mainly driven by weak income in property and casualty segment and low interest rates and market volatility resulted operating profit to fall 6% to €3.6 billion.

National Grid Plc plummeted 5.8% to 947.50 pence after the U.K.-based electricity and gas utility provider reported revenues in the first-half ending in September jumped 5.1% from a year ago to £7.2 billion.

Net income in the period plunged 51.8% from a year ago to £506 million compared to the £1.05 billion and diluted earnings per share fell to 13.3 pence from 27.6 pence.

Rolls-Royce Holding Plc soared 4.6% to 793 pence after the U.K.-based aero engines maker signed “Collateralised Debt Obligations” for more than £1 billion or $1.24 billion with insurance services provider Legal & General Group Plc to offload substantial amount of its pension liabilities.

“This unwinding of £1 billion of CDO’s are executed effectively and delivers £100 million of capital efficiency”, Mark Gregory, group chief finance officer said. “We continue to focus on better risk adjusted returns for shareholders and benefits to pensioners,” he added.

Siemens AG jumped 5.6% to €110.44 after Germany-based industrial conglomerate reported revenues in the fourth-quarter ending in September rose 3% from a year ago to €21.95 billion.

Net profit in the quarter declined 20% from a year ago to €1.2 billion compared to the €959 million and diluted earnings per share advanced to €1.42 from €1.18.

Siemens said revenue growth was driven by strong performance in power and gas business and €8 billion of power generation contract with Egypt but new orders declined 14% to €20.33 billion.

The industrial conglomerate said it intends for public listing of its most profitable healthcare business of $15 billion but said the listing time depend on the stock market environment.

Vedanta Resources Plc surged 14.5% to 894.50 pence after the U.K.-based minerals, and oil and gas producer reported revenues in the first-half ending in September plunged 15% from a year ago to $4.9 billion.

Net loss in the period narrowed from a year ago to $64.2 million compared to the $324.5 million and diluted loss per share dropped to 23.2 cents from 117.7 cents.

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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