By Nathan Allen
Shares in Hochtief and parent company Actividades de Construccion y Servicios SA (ACS.MC) fell sharply Thursday after their Australian subsidiary CIMIC Group 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.
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