Euro Weak; Amadeus IPO

Arthi Gupta, Mayank Mehta and Sanjay Barot
29 Apr, 2010
New York City

European stocks rebounded as Siemens profit surged 54%. Banco Santander SA net increase 6% in the quarter and Bayer posts 63% rise in first quarter net. ArcelorMittal returns to profit in the first quarter.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European stocks rebounded as Siemens profit surged 54%. Banco Santander SA net increase 6% in the quarter and Bayer posts 63% rise in first quarter net. ArcelorMittal returns to profit in the first quarter.[/R]

European stocks rose modestly and the euro halted its decline but currency traders forecasted the euro to decline as low as $1.20 in the year. The euro closed at $1.323 in London trading and traded at $1.3242 in New York trading at 1:00 pm local time.

The IMF agreed to raise the €45 billion aid package for Greece to as much as €120 billion over three years European Union Economic and Monetary Affairs Commissioner Olli Rehn today said the outcome of talks with Greece will be “a multi-annual program that will lead to major fiscal and structural adjustment,” with more details coming “soon.”

The Initial Public Offering of Amadeus IT Holding S.A. on the Spanish stock exchanges raised €1.32 billion or $1.75 billion. Stock closed 8% higher at €11.90 from the offer price of €11. Amadeus IPO is the largest public offering in Madrid since June 2008 listing of EDP Renovaveis SA that raised €1.57 billion.

Most of the proceeds will be used to lower the debt by €910 million.

National benchmark indexes rebounded today, climbing in all 18 western European markets except Iceland. In Greece, the benchmark ASE Index soared 7.1%.

In London FTSE 100 Index closed higher 14.06 or 0.25% to 5,600.67, in Paris CAC 40 Index increased 36.96 or 0.98% to close at 3,823.96, in Frankfurt DAX index higher 37.88 or 0.62% to close at 6,122.22. In Zurich trading SMI increased 78.57 or 1.19% to close at 6,654.96.

Banco Santander SA net increase 6% in the quarter and Bayer posts 63% rise in first quarter net. ArcelorMittal returns to profit in the first quarter.

Gainers & Losers

Aixtron AG rose 0.4% to €26.73 after the maker of equipment used to produce LED screens announced that it has raised its fiscal year 2010 guidance. The company expects for fiscal year 2010, revenue between €650 million and €700 million as well as EBIT margin of at least 30%.

ArcelorMittal fell 0.2% to €40.95. The global steel producer said first quarter sales rose 24% to $18.7 billion from $15.1 billion a year ago. Net profit for the quarter was $679 million or $0.35 per diluted share compared to net loss of $1.06 billion or $0.78 per share a year ago.

Banco Santander SA, the bank said first quarter net interest income rose 18% to €7.1 billion from €6.0 billion a year ago. Net profit for the quarter rose 5.7% to €2.22 billion or €0.25 per diluted share compared to net profit of €2.1 billion or €0.24 per share a year ago.

BASF SE fell 3.4% to €44.85 but the chemical company said first quarter sales rose 26% to €15.5 billion from €12.2 billion a year ago. Net profit for the quarter rose 174% to €1.03 billion or €1.12 per diluted share compared to net profit of €375 million or €0.41 per share a year ago.

Bayer AG slipped 0.5% to €49.88. The chemical and pharmaceutical company said first quarter sales rose 5.3% to €8.32 billion from €7.9 billion a year ago. Net profit for the quarter rose 63% to €693 million or €0.84 per diluted share compared to net profit of €425 million or €0.55 per share a year ago.

Clariant AG, the specialty chemicals company said first quarter sales rose 14% to €1.82 billion from €1.60 billion a year ago. Net profit for the quarter was €6 million or €0.01 per diluted share compared to net loss of €93 million or €0.41 per share a year ago.

Deutsche Postbank AG fell 0.1% to €25.51.

France Telecom S.A added 0.6% to €16.43. The telecommunications operator said first quarter revenues fell 2% to €10.96 billion from €11.19 billion a year ago. Earnings before interest, taxes, depreciation and amortization for the quarter fell 5% to €3.76 billion compared to €3.96 billion a year ago.

MAN SE advanced 2.8% to €68.69. The engineering group said first quarter revenues rose 22% to €3.12 billion from €2.56 billion a year ago. Net profit for the quarter fell 73% to €48 million compared to net profit of €179 million a year ago.

Pernod Ricard SA gained 3.5% to €65.20 after the liquor maker third quarter revenue rose 14%.

Praktiker Bau und Heimwerkermaerkte Holding AG dropped 1.8% to €7.22.

Repsol YPF, S.A, the integrated oil and gas explorer said first quarter net profit rose 30% to €688 million or €0.56 per diluted share compared to net profit of €529 million or €0.58 per share a year ago.

Sanofi-Aventis SA fell 1.7% to €50.98. The pharmaceutical group said first quarter revenues rose 4% to €7.39 billion from €7.11 billion a year ago. Net profit for the quarter rose 10% to €2.43 billion or €1.86 per diluted share compared to net profit of €2.21 billion or €1.70 per share a year ago.

Siemens AG rose 1.1% to €72.84 but the electronics and electrical engineering company said first half revenues fell 8% to €35.6 billion from €38.6 billion a year ago. Net profit for the first half rose 36.4% to €2.96 billion or €3.37 per diluted share compared to net profit of €2.17 billion or €2.49 per share a year ago.

Singulus Technologies AG, the maker of machines that produce compact discs and DVDs fell 2.7% to €6.12.

Takkt AG fell 0.6% to €8.30.

Technip SA rose 1.4% to €59.20. The offshore engineering group said first quarter revenues fell 16% to €1.32 billion from €1.57 billion a year ago. Net profit for the quarter fell 3% to €95.9 million or €0.88 per diluted share compared to net profit of €99.1 million or €0.93 per share a year ago.

Ulric de Varens SA, the perfume maker fell 1.9% to €5.00.

DAX Index Movers

Deutsche Post AG led the decliners in the DAX index of 4.37%, followed by decrease Muenchener Rue AG of 4.09%, in Bayer AG of 2.16%, in BASF SE of 1.55%, and in Fresenius SE of 0.77%.

Deutsche Boerse AG led gainers in the DAX index with a rise of 5.69%, followed by increase in MAN SE of 5.04%, in Volkswagen AG of 4.27%, in Deutsche Lufthansa AG of 3.39%, and in Diamler AG of 3.27%.

CAC-40 Index Movers

PPR SA led the decliners in the CAC-40 index of 1.54%, in Electricite de France SA of 1.18%, in ArcelorMittal of 0.84%, in Sanofi-Aventis of 0.52% and Veolia Environnement of 0.44%.

Technip gainers in the CAC-40 index with a rise of 6.56%, in Schneider Electric SA of 3.43%, in Compagnie de Saint-Gobain SA of 3.38% in Accor SA of 3.29% and in Danone SA of 3.26%.