European Averages Slide

Elena
16 Mar, 2006
Frankfurt

European averages traded lower at mid-day, pressured by oil, healthcare and insurance stocks. Strong performance from supermarket group Casino Guichard and steelmaker Corus Group failed to offset decline. The German DAX 30 fell 0.3%, the French CAC 40 declined 0.3%, and London FTSE 100 lost 0.2%.

8:30AM. Winnebago net plunges, Global Crossing loss widens.
Winnebago Industries Inc., ((WGO)), motor home manufacturer, reported that Q2 profit dropped 39 % to 23 cents per share, from 37 cents per share in the year-ago period on lower demand and prices for motor homes, below analyst estimate of 38 cents a share. Revenue declined 14 % due to lower motor home deliveries because of decreased industry retail demand and a shift to lower priced motor homes.

Global Crossing Ltd, ((GLBC)), communications company, reported a Q4 loss of $79 million, down from a loss of $27 million a year-earlier, before the payment of preferred stock dividends of $1 million in each period. Revenue dropped to $462 million from $573 million in the same period a year ago. The company added that its adjusted EBITDA came to a loss of $32 million, down from equivalent loss of $19 million in the year-ago period. Q4 results include $15 million in additional incentive and stock compensation costs.

Shoe Carnival Inc, ((SCVL)), footwear retailer, reported that Q4 earnings advanced more than twice to 22 cents a share, with sales up 13.7% and same-store sales up 11.7% in Q4, beating analysts’ expectations of 21 cents a share

Leap Wireless, ((LEAP)), wireless communications carrier, reported that it reversed to Q4 profit of 8 cents a share, up from a quarterly loss of 11 cents a share in the prior year, as it added nearly 46,000 new customers. Revenue advanced to $228.9 million from $206.6 million. The company beat analysts’ estimates for earnings of 5 cents.

New York & Co Thursday, ((NWY)), women's apparel retailer, reported Q4 earnings of 36 cents a share, up from 32 cents a share a year-earlier on 16.1% sales growth and 9.6% same-store sales growth. The company’s results were in line with analysts’ estimates for a profit of 36 cents a share.

Cost Plus Inc, ((CPWM)), retailer, reported Q4 net profit dropped 8.5% to 97 cents a share despite 7% net sales growth. Same-store sales dropped 2.1%. The company missed analysts’ views by a penny.


8:00AM Asian markets closed mixed. The Nikkei slipped 1.4%.
Asian-Pacific benchmarks ended Thursday session mixed, reflecting interest-rate concerns and a key earnings report from China Mobile. The Nikkei opened higher on exporter issues, boosted by stronger dollar, but eventually tumbled 1.4% to 16,096.21 as investors worries about higher Japanese interest rates dragged real estate and bank stocks, including Sumitomo Realty and Development, down 6.6%. Hong Kong’s Hang Seng slightly advanced to 0.06% on optimism about strong corporate results. Taiwan Weighted index fell 0.2% on profit-taking in the tech sector. Australia All Ordinaries climbed 0.6% on resources and building-materials issues.

European markets traded lower at mid-day, erasing early gains. A strong performance from supermarket group Casino Guichard and steelmaker Corus Croup failed to keep stocks in the positive as oil, healthcare and insurance stocks exerted strong pressure. The German DAX 30 declined 0.3%, the French CAC 40 fell 0.3%, and London FTSE 100 lost 0.2%.