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Shownotes
Today's biggest winners and losers in the stock market.
On this episode of Stock Movers:
- Alstom shares fall as much as 31% in Paris, heading for the biggest one-day decline in more than three years, after the train maker cut its adjusted Ebit margin forecast and warned of a significant free-cash outflow. JPMorgan views Alstom’s second warning this year as a “painful but necessary clearing event.”
- BP Plc completed a deal to offload its Castrol lubricants business, giving the oil and gas major $6 billion to pay down debt as it works to repair the balance sheet.
- Ibstock warned it expects its performance in the second-half of the year to be materially below its previous expectations due to weak market conditions, prompting Peel Hunt to cut its estimates and price target on the building products maker.
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Bloomberg Audio Studios. Podcasts. Radio. News. The Stock Movers Report. Your roundup of companies making moves in the stock market. Harnessing the power of Bloomberg data.
Let's have a look at some of the stocks on the move today in Europe. I'm Caroline Hepke with Stephen Carroll. We're joined by Bloomberg's breaking news editor, Louise. Nice to see you on Monday morning. First up, Alstom. Shares in the French train maker absolutely plunging.
Why? Yeah, it's one of the big, big movers in Europe this morning. I'd say plunging as much as 31% in Paris. They're heading for their biggest one-day decline in three years. This is on the back of news that they've cut their forecasts. So, Outlook as well as train car production targets. And they've also warned of a big significant free cash outflow. They already withdrew guidance in April and shares slumped then and then slumping again today. This time, it's because of delays in key German projects. So, that's led to some penalties and hurt their margins. Alongside that, they've announced they're going to do a broader review of the organization. So, as part of that, there's a plan to cut debt by about € 2 billion. So, Bloomberg Intelligence
saying all of this is a major setback in Alstom's turnaround and should drive steep estimate cuts. So, shares plunging on the back of that.
Yeah, a huge drop in those share prices.
Let's go to BP next and announcing it's offloading one of its businesses, which is getting some reaction from traders.
Yeah.
So, they've completed their deal to offload their stake or some of their stake in Castrol. So, they've sold 65% of that to Stonepeak, which gives it about $ 6 billion. They're going to use that to pay down debt. So, things like conventional debt, hybrid bonds, etc., a whole range of things. Good news in the sense they're trying to repair their balance sheet. It's obviously a big milestone for them to part their attempt to reset the business. They've had years of underperformance, kind of under pressure from Elliot.
And this is the latest disposal to simplify things and turn things around. Shares falling, presumably more on lower oil prices necessarily than this news, as this news, you would think it would be taken more positively. But shares falling as oil prices are lower today.
And lastly, Ibstock shares hit by an earnings miss.
Yes, they've had their first half earnings and they cut their outlook going ahead for the rest of the year. So, they're warning that their second half will be materially below expectations. all on this weaker condition in the housing market that we've been seeing for quite a while. So, weaker activity as well as quite sluggish activity in repairs. So, Ibstock, it provides building materials. So, both of those hit it quite heavily. So, shares falling. Well, initially, they fell about 14%. Now, they're down about 8%. So, still quite low on the back of this. Peel Hunt cut their estimates and their price targets. But if you look at their analyst ratings, the majority are for a hold at the moment. So,
there's about seven holds. So, yeah, warning that their second half will be a lot worse.
The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.
