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Market Update

Philips Profit Declines on Flat Revenue, Spire Healthcare Rejects Takeover Bid

Author: Sarla Buch
Last Update: 10:59 AM EDT October 23 2017

4:00 PM Frankfurt CRH received Ash Grove approval for its $3.5 billion acquisition. Philips net plunged 15% on flat revenues. Pendragon tumbled on profit warning. Spire Healthcare rejected takeover offer from its major investor Mediclinic. Securitas reported better-than-expected results.

In London trading, FTSE 100 index edged up 6.25 to 7,529.52 and in Frankfurt the DAX index rose 16.38 to 13,007.67.

In Paris, CAC 40 index advanced 28.28 or 0.5% to 5,400.66.

CRH Plc gained 1.7% to 2,839 pence after the U.K.-based building materials supplier said shareholders of the U.S.-based cement producer Ash Grove Cement Co approved the proposed $3.5 billion takeover deal.

The transaction is expected to close in late 2017 or early 2018.

Koninklijke Philips NV increased 1.5% to 35.92 after the Netherlands-based health technology provider reported sales in the third-quarter ending in September were nearly flat from a year ago at 4.1 billion.

Net income in the period plunged 14.9% to 315 million from 370 million in a year ago period and diluted earnings per share dropped to 0.33 from 0.40.

Philips said comparable sales growth was mainly driven by double-digit growth in China, Latin America and India.

Pendragon Plc tumbled 18.2% to 23.73 pence after the U.K.-based automobile dealer forecasted fiscal 2017 revenue growth of about 3.7% while profit to plunge 20.7% on weak demand for new cars and a sharp decline in used vehicle prices.

Spire Healthcare Group Plc surged 13.8% to 297.30 pence after the U.K.-based hospitals operator said that it had rejected preliminary takeover approach for 298.6 pence per share from South Africa-based privately held rival Mediclinic International Plc.

Mediclinic already owns 29.9% stake in Spire Healthcare

The current offer for the remaining stake consists of 150 pence in cash and 0.232 new shares that valued Spire for about 1.20 billion or $1.59 billion.

Securitas AB jumped 3.7% to 141.20 Swedish kronor after Sweden-based security solutions provider reported revenues in the nine-month period ending in September rose 6% from a year ago to 64.4 billion kronor.

Net income in the period declined 8% to 1.9 billion kronor from 2.1 billion in a year ago nine-month period and diluted earnings per share dropped to 5.32 kronor from 5.73 kronor.

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