ADRs End Lower; Ericsson Falls
July 19 2016 - 7:00PM
Dow Jones News
International stocks trading in New York closed lower on
Tuesday.
Ericsson (ERIC) was among the companies with ADRs that traded
actively.
The BNY Mellon index of American depositary receipts fell 1% to
125.02. The European index decreased 1.1% to 121.01; the Asian
index dropped 1% to 135.12; the Latin American index edged down
0.7% to 197.02; and the emerging markets index eased 0.9% to
243.21.
Ericsson's ADRs fell 6.1% to $7.08 as the Swedish
telecommunications-equipment maker unveiled further cost cuts,
including a work-force reduction, and reported that its
second-quarter profit fell 24% as it faces stiff competition and
continued weak product demand in most of its markets.
AstraZeneca PLC (AZN, AZN.LN) said Tuesday that the European
Union has approved its Qtern tablets for the treatment of type 2
diabetes in all 28 EU member countries and Iceland, Lichtenstein
and Norway. ADRs edged down 25 cents to $30.30.
Even though Brazilian airline GOL Linhas Aereas Inteligentes SA
(GOL, GOLL4.BR) slashed departures 21% in the second quarter from a
year earlier amid the country's deep recession, demand fell even
faster. While overall capacity declined 9.3%, the percentage of
seats filled dropped to 75.2% from 76.8%. Despite the continuing
weakness, GOL's equity has been rebounding after tumbling 90% in
2015. Its ADRs have nearly tripled this year. On Tuesday, ADRs
edged down eight cents to $15.96.
Swiss pharmaceutical company Novartis AG (NVS, NOVN.EB) cut its
profit guidance for the year as it ramps up investment in its new
heart-failure drug to in an effort to offset falling sales of
cancer blockbuster Gleevec. ADRs eased 51 cents to $81.53.
ADRs of ​Rio Tinto PLC (RIO, RIO.LN) fell 5.5% to $31.19 a day
after the mining giant reported that it shipped more iron ore to
global steelmakers in the last quarter, recovering from a weak
start to the year when a tropical cyclone hindered its vast mining
operations in northwest Australia. According to Liberum Capital,
the company will need to boost sales in the second half to reach
its target of shipping 330 million tons of iron ore this year from
the Australian mines, assuming production equals sales. "Rio is the
first iron ore major to report production, but seasonally higher
production in [the second half] will be expected across the sector
and is another reason we are high conviction sellers of iron ore
into the second half" of the year, the firm said.
Wipro Ltd. (WIT, 507685.BY) said its fiscal first-quarter profit
fell 6.4%, missing expectations, amid higher expenses and lower
other income. The Indian information-technology service provider's
ADRs fell 6.8% to $11.04.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
July 19, 2016 18:45 ET (22:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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