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Market Update

Vestas Wind Profit Surge; Nestle Net Declines


Author: Sarla Buch
ticker.com
Last Update: 11:47 AM ET August 18 2016

4:00 PM Frankfurt Asda struggles with performance despite price declines. Co-operative Bank net loss narrowed. Kingfisher sales rose 8% to 3 billion. Nestle profit declined 9%. Vestas Wind net surged 73% and lifted fiscal outlook after combined order backlog jumped 7%.

European markets edged higher in volatile trading and corporate earnings dominated news flow.

In London trading, FTSE 100 index edged up 1.32 to 6,860.61 and in Frankfurt the DAX index rose 42.45 0.4% to 10,580.12.

In Paris, CAC 40 index added 3.30 to 4,421.04.

Asda Group Limited, the U.K.-based privately held chain, owned by the U.S.-based Walmart Stores, said quarterly sales declined 7.5% despite price decline of 1.5 billion over five years.

The Co-operative Bank, the U.K.-based privately held financial services provider said net interest income in the first-half ending in June plunged 34.7% from a year ago to 177 million.

Net loss in the period narrowed from a year ago to 132.1 million compared to the 233.3 million and diluted loss per share dropped to 29.26 pence from 51.67 pence.

The troubled co-operative bank said operating income fell 3.5% to 228.2 million while operating expenditure declined 15% to 222.8 million from 262.9 million in a year ago period.

However, deposit plummeted 14.5% to 21.8 billion while loan book jumped 5.5% to 15.4 billion and total core bank net customer loans increased to 15.4 billion.

Kingfisher Plc jumped 2.1% to 365.50 pence after the U.K.-based home improvement retailer stated sales in the first-half ending in July soared 8.4% to 3.03 billion and comparable store sales jumped 3% mainly driven by the U.K. and Poland regions.

In the period, the retailer had completed sold off remaining 30% interest in B&Q China following regulatory approval.

Nestle SA gained 1.3% to 79.35 Swiss francs after the Switzerland-based powered and liquid beverages maker reported sales in the first-half ending in June jumped 3.5% from a year ago to 43.2 billion francs.

Net profit in the period declined 8.9% from a year ago to 4.1 billion francs compared to the 4.5 billion francs and diluted earnings per share dropped to 1.33 francs from 1.43 francs.

Vestas Wind Systems A/S surged 9.4% to 532.50 Danish kronor after the Denmark-based wind power producer said revenues in the first-half ending in June jumped 22.9% from a year ago to 4.02 billion.

Net profit in the period soared 72.9% from a year ago to 313 million compared to the 181 million and diluted earnings per share advanced 3.7 from 2.2.

Vestas Wind lifted revenue forecast in the year of about 9.5 billion from earlier estimated to 9 billion and free cash flow of minimum 800 million compared to previous guidance of 600 million, this including the acquisition of Availon Holding GmbH.

As of June 30, the wind power producer said combined backlog of wind turbine orders and service agreements jumped 7.1% to 18.1 billion compared to 16.9 billion 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