Earnings Lift European Indexes; Deutsche Bank Profit Rises 17%

Arthi Gupta
28 Apr, 2011
New York City

The European indexes edged higher after Deutsche Bank and Bayer reported better-than-estimated quarterly earnings. SAP plunged 5.7% after earnings missed expectations. German unemployment dropped to the lowest in the last nineteen years.

[R]2:00 PM Frankfurt – The European indexes edged higher after Deutsche Bank and Bayer reported better-than-estimated quarterly earnings. SAP plunged 5.7% after earnings missed expectations. German unemployment dropped to the lowest in the last nineteen years.[/R]

European indexes rose on strong earnings and Germany reported lowest rate of unemployment in April in nineteen years when record keeping began. German inflation accelerated in April and French consumer spending eased in March.

The trading sentiment was positive after the U.S. Federal Reserve indicated interest rate is likely to remain low as employment conditions are improving gradually.

In Paris CAC-40 Index gained 18.01 or 0.44% to 4,085.73 and in Frankfurt DAX index edged higher 34.35 or 0.46% to 7,439.30.

Germany''s unemployment fell below 3 million in April, bringing the total number of unemployed to its lowest level in nineteen years. The seasonally adjusted jobless rate remained unchanged at a record low 7.1% in April.

Gainers & Losers

Banco Santander, S.A. gained 1.42% to €8.60 after the financial group reported first quarter net profit declined 4.5% to €2.11 billion or 23.49 euro cents per share compared with €2.21 billion or 24.75 euro cents per share last year.

Net interest income grew 5.5% to €7.51 billion from €7.12 billion in the comparable period.

Bayer AG rose 0.87% to €58.04 after the German health care and agricultural materials company reported first quarter sales improved 13.2% to €9.42 billion. Net income for the quarter increased 8.4% to €684 million or 83 euro cents a share from €631 million or 76 euro cents a share earned in the same quarter last year.

Deutsche Bank AG surged 4.11% to €43.52 after the global investment bank reported first quarter net revenues grew 16% to €10.47 billion. Net income in the quarter increased 17% to €2.06 billion from €1.76 billion in the previous year.

On a per-share basis, earnings were 2.13 euros, lower than 2.43 euros a year earlier on increased number of shares outstanding.

Sanofi-Aventis SA climbed 1.05% to $39.30 after the French healthcare company reported first quarter net sales declined 1.5% to €7.78 billion from €7.90 billion in the first quarter of 2010. Net income in the quarter slipped 28.7% to €1.22 billion from €1.71 billion a year ago. Consolidated earnings per share were 0.93 euros compared with 1.31 euros in the prior-year quarter.

SAP AG plunged 5.71% to €43.07 after the German software maker reported first quarter total revenue grew 21% to €3.02 billion from €2.51 billion in the year-ago quarter. Net income in the quarter grew 4% to €403 million or 0.34 euros per share from €387 million or 0.33 euros per share in the prior-year quarter.

Technip SA fell 2.20% to €75.16 after the France-based operator of gas and oil engineering, technologies and projects said first quarter revenues climbed 9.1% to €1.44 billion from €1.32 billion in the previous year. Net income in the quarter gained 8.8% to €104.3 million or 0.92 euros per share from €95.9 million or 0.88 euros per share in the prior year.

Wirecard AG edged higher 0.08% to €12.41 after the provider of electronic payment and risk management applications reported first quarter preliminary group sales rose 19.5% to €69.9 million from €58.5 million in the same quarter a year earlier.