European Corporate Roundup for Friday
20 Octobre 2017 - 11:00AM
Dow Jones News
European corporate news is in focus Friday, with auto makers
Daimler and Volvo reporting mixed profit updates.
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German auto maker Daimler, which produces the Mercedes-Benz
brand of luxury cars, reported a sharp fall in quarterly profit as
its flagship car was hammered by airbag-related recalls and the
cost of fixing emissions controls on diesel vehicles.
Net income fell 17% to EUR2.27 billion ($2.69 billion) in the
three months to Sept. 30 from EUR2.73 billion the prior year,
slammed by costs linked to the diesel fix and currency
fluctuations.
Earnings before interest and taxes--the measure most closely
watched by investors--fell to EUR3.46 billion from EUR4.04 billion
the previous year, pulled lower by a 22% drop at Mercedes and
despite a strong rise in truck earnings.
Earnings were also hit by costs from the launches of Mercedes'
new flagship S-Class model, X-Class light-utility vehicles and the
company's first electric heavy truck.
The biggest impact on earnings, however, came from mounting
costs related to the industry's diesel-emissions woes.
"Around 60% of the vehicles affected in Germany have been
updated," Chief Finance Officer Bodo Uebber told reporters on a
conference call.
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Swedish truck maker Volvo reported a forecast-beating increase
in third-quarter net profit, boosted by rising truck orders and a
continued rebound in its construction-equipment unit.
Overall demand was stellar during the quarter, with truck orders
up 32% on the year and construction equipment orders up by 45%.
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Sweden's Ericsson said that net loss widened sharply in the
third quarter amid increasing restructuring charges and provisions
as the company continued to navigate tough markets and a huge
strategic shakeup.
The supplier of wireless-communications gear reported a net loss
for the three months ended Sept. 30 of 4.45 billion Swedish kronor
($547.5 million) compared with a loss of SEK233 million a year
earlier, missing analysts' expectations for a loss of SEK1.35
billion, according to a FactSet poll. Revenue was down 6.4% at
SEK47.8 billion.
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Metro, the German wholesale and food retail company, said that
sales in the fourth quarter rose modestly on a like-for-like basis
due to positive acquisition effects and a strong online
business.
Sales in the fourth quarter rose 0.5% to 9.2 billion euros
($10.88 billion) compared with EUR9.1 billion last year. This rise
was offset by currency effects, with sales in the local currency
increasing by 1.6%.
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TomTom reported a swing to a loss for the three months ended
Sept. 30 and said that it has reduced its revenue guidance for the
year.
The Dutch company posted a net loss of 5.3 million euros ($6.3
million) for the third quarter, compared with a net profit of
EUR595,000 a year earlier, citing a one-off charge of EUR15.4
million related to the restructuring of its consumer-sports
division.
(END) Dow Jones Newswires
October 20, 2017 04:45 ET (08:45 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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