Hochtief, ACS Sink After Australian Subsidiary Disappoints

   By Nathan Allen

Shares in Hochtief AG (HOT.XE) and parent company Actividades de Construccion y Servicios SA (ACS.MC) fell sharply Thursday after their Australian subsidiary CIMIC Group Ltd. (CIM.AU) reported disappointing first-half results.

CIMIC closed 19% lower Thursday after first-half earnings failed to meet expectations. While group profit ticked up on the year, pretax profit for its construction business fell by 15%, leading Macquarie to downgrade the stock to hold from buy.

At 0744GMT Hochtief, which holds a 73% stake in CIMIC, traded 9.2% lower at EUR96.85, making it the second-biggest loser on the Stoxx Europe 600. ACS, which holds slightly more than 50% of Hochtief, was down 4.9% at EUR36.28.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

July 18, 2019 04:06 ET (08:06 GMT)

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