ADRs End Lower; Ericsson Falls

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 [e-mail]

(END) Dow Jones Newswires

July 19, 2016 18:45 ET (22:45 GMT)

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