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

Thyssen, Tata Steel to Merger European Businesses, Zara Profit Soars


Author: Sarla Buch
ticker.com
Last Update: 10:40 AM EDT September 20 2017

4:00 PM Frankfurt Alten profit surged on three acquisitions in the fiscal 2017. Babcock reaffirmed fiscal 2018 and 2019 outlooks. Zara owner Inditex profit soared but margin dropped. Kingfisher profit declined. Thyssen and Tata agree to merge their European business.


In London trading, FTSE 100 index edged up 0.10 to 7,275.35 and in Frankfurt the DAX index slid 9.09 to 12,552.84.

In Paris, CAC 40 index rose 6.77 to 5,244.21.

Alten SE declined 7.5% to 72.31 after France-based consulting and engineering services provider reported revenues in the first-half ending in June soared 13% from a year ago to 983.7 million.

Net profit in the period surged 20.4% to 73.3 million from 60.9 million in a year ago six-month period.

Alten said in the fiscal year 2017 it had completed a total 3 acquisitions, one in Germany and two in the U.S.

Babcock International Group Plc soared 6.2% to 849.38 pence after the U.K.-based engineering support services provider lifted fiscal 2018 revenue growth estimate to 89% and 57% in fiscal 2019 from the previous forecast of 82% and 55% respectively.

Babcock said it had start work on 500 million FOMEDEC military air training contract for the French Air Force and its aviation business had begun to deliver the new 500 million emergency medical services and its marine segment started work on 360 million contract for the Royal Navy''s new aircraft carriers.

On September 14, Babcock secured seven-year contract to design, produce and deliver weapons handling and launch equipment for South Korean submarine.

Inditex SA slipped 1.6% to 32.17 after Spain-based household textile products maker reported revenues in the first-half ending in June surged 11% from a year ago to 11.7 billion.

Net profit in the period jumped 8% to 1.3 billion from 1.2 billion in a year ago six-month period and operating profit in the period advanced 7% from a year ago to 2.1 billion.

In last twelve months, Inditex added 9,932 new jobs and opened 113 new stores, including Zara store in Mumbai, India; Madrid, Spain and in Astana, Kazakhstan.

Kingfisher Plc surged 6.2% to 314.70 pence after the U.K.-based home improvement products retailer reported revenues in the first-half ending in July jumped 4.5% from a year ago to 6.1 billion.

Net income in the period plunged 8.1% to 295 million from 321 million in a year ago six-month period and diluted earnings per share fell to 13.3 pence from 14.1 pence.

Kingfisher said transformation of business was on track in the first-half but the retailer was cautious about outlook for the second-half.

ThyssenKrupp AG jumped 3.6% to 26.16 after Germany-based diversified steel products maker and India-based Tata Steel Ltd signed a memorandum of understanding to combine their European steel operation in a 50-50 joint venture.

The new entity is set to have pro forma sales of about 15 billion and the production is scheduled to start in 2020.

The deal is estimated to be signed in the early 2018 and finalized by the end of 2018.

  1
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc