Greek Bank Withdrawals Accelerate, Danone Net Plunges 21%

Nigel Thomas
20 Feb, 2015
New York City

European markets were in holding pattern after Greek debt negotiation fatigue sets in. Greek depositors accelerated bank withdrawals ahead of the Brussles talk which are expected to lead nowhere. Greece may impose Cyprus-style controls this long weekend to stem the rising tide of outflow.

[R]4:00 PM Frankfurt – Danone profit plunged 21% to €1.1 billion and net debt increased to €7.8 billion. Fuchs Petrolub net rose 0.4% to €220 million. Pfeiffer Vacuum Technology operating earnings plunged 11.5%. Standard Life net soared 12% to £376 million. Telecom Italia EBITDA declined 8% to €9 billion.[/R]

Market indexes in the euro zone were in holding pattern as leaders in the region gather one more time to discuss the latest proposal from Greece.

Tempers are running high and for the first time ministers and bureaucrats are entertaining the prospect of Greece leaving the currency union.

European Central Bank President Mario Draghi and Executive Board member Benoit Coeure are expected to join along with Christine Lagarde, managing director of the International Monetary Fund.

The talks today in Brussels are expected to be inconclusive and may extend to Sunday or Monday and most investors have begun to shift attention away.

In London trading, FTSE 100 index edged up 0.08% or 5.17 to 6,894.07 and in Frankfurt the DAX index slid 0.3% or 30.09 to 10,971.85.

In Paris, CAC 40 index fell 0.6% or 29.33 to 4,803.95.

In Frankfurt trading, the euro traded slightly lower and Greek depositors yanked close to one billion euros in each of the last two days ahead of three-day weekend.

Markets in Europe are closed on Monday and Greek depositors are worried that a Cyprus-style capital control maybe put in place if talks fail this weekend.

Danone SA fell 0.3% to €58.95 after the France-based dairy and baby food maker reported sales in the year ending in December fell 0.7% to €21.14 billion from €21.30 billion a year ago period.

Net profit in the quarter plunged 21.1% from a year ago to €1.12 billion compared to €1.42 billion and diluted earnings per share dropped to €1.88 from €2.42.

As of December, the company’s net debt increased to €7.76 billion, including €2.56 billion in put options approved for minority shareholders.

Fuchs Petrolub SE dropped 2.2% to €58.95 after the German-based engine and gear oil producer said revenues in the year ending in December jumped 2% to €1.87 billion from €1.83 billion a year ago period.

Net profit in the year rose 0.4% from a year ago to €220 million compared to €219 million and diluted earnings per share increased to €1.57 from €1.53.

Pfeiffer Vacuum Technology AG plunged 8.1% to €75.72 after the German-based pump manufacturer stated sales in the year ending in December slid 0.5% to €406.6 million from €408.7 million a year ago period.

The company said earnings before interest and tax in the year plunged 11.5% to €44.7 million compared to €50.5 million a year ago period.

The board proposed a dividend of €2.65 per share from a year ago.

Standard Life Plc gained 2% to 416.60 pence after the U.K.-based insurance company reported revenues in the year ending in December surged 14.6% to £1.57 billion from £1.37 billion a year ago period.

Net profit in the year soared 12.2% from a year ago to £376 million compared to £335 million and diluted earnings per share rose to 15.7 pence from 14.1 pence.

Telecom Italia SpA slipped 1.1% to €1.01 after the Italy-based communication service provider reported revenues in the year ending in December plummeted 7.8% to €21.57 billion from €23.41 billion a year ago period.

The telecom group added earnings before interest, tax and amortization in the year declined 7.9% to €8.79 billion from €9.54 billion a year ago period.

The company reduced adjusted net financial debt in the year by €156 million to €26.65 billion from a year ago.