European Markets Drop 1.3%; Banco Santander, Daimler Net Surge

Nigel Thomas
28 Apr, 2015
New York City

European markets dropped more than 1.3% on weaker than expected results. Banco Santander net soared 32%. Daimler profit surged 89% to

[R]4:00 PM Frankfurt – European markets dropped more than 1.3% on weaker than expected results. Banco Santander net soared 32%. Daimler profit surged 89% to €2.1 billion on 16% increase in revenues. Henderson first-quarter assets under management soared 10% to £89 billion. Man SE net swung to a loss. Orange revenues fell 1%.[/R]

Stocks across Europe were under pressure and the U.K. gross domestic product was lower than expected in the first quarter to March.

U.K. GDP expanded 0.3% in the quarter and in the one year to March growth slowed to 2.4% from 2.8% in the year to December 2014, according to the data released by the Office for National Statistics.

European markets trended lower after weaker than expected corporate results and worries of stretched valuations and falling confidence index in the U.S.

In London trading, FTSE 100 index dropped 1.5% or 108.82 to 6,995.16 and in Frankfurt the DAX index plunged 2.2% or 263.82 to 11,775.34.

In Paris, CAC 40 index declined 1.3% or 119.56 to 5,149.35.

Banco Santander, S.A gained 1% to €6.84 after the Spain-based lender and largest European bank reported net interest income in the first-quarter ending in March climbed 15% to €8.04 billion from €6.99 billion in a year ago period.

Net profit in the quarter soared 31.8% from a year ago to €1.72 billion compared to €1.30 billion and diluted earnings per share increased to 12.10 euro cents from 11.30 euro cents.

Commerzbank AG dropped 5.5% to €12.19 after the lender launched €1.4 billion stock offering.

Daimler AG rose 0.9% to €90.32 after the Germany-based automaker said revenues in the first-quarter ending in March soared 16% to €34.24 billion from €29.46 billion in a year ago period.

Net profit in the quarter surged 89% from a year ago to €2.05 billion compared to €1.09 billion and diluted earnings per share jumped 91% to €1.83 from €0.96.

Daimler said unit sales in the quarter climbed 13% to 641,600 vehicles and sales of Mercedes-Benz cars jumped 18% to 459,700 vehicles. Daimler Trucks revenues advanced 18% to €8.4 billion.

Henderson Group Plc fell 0.4% to 287.38 pence after the U.K.-based investment company said its assets under management in the first-quarter ending in March soared 10% to £89.4 billion or $136.24 billion.

In the quarter, money manager collected net inflows of £3.6 billion, including £2.9 billion into its retail funds.

Retail assets under management advanced 13.8% to £52.34 billion and institutional assets under management jumped 5.3% to £37.01 billion from fourth-quarter ending in December.

In January, the merger of Old Mutual property fund into Henderson''s UK Property fund added £470 million of assets.

Kier Group Plc increased 0.9% to 1,639 pence after the U.K.-based construction services provider agreed to acquire road maintenance company Mouchel for £265 million or $404 million in cash.

Man SE slid 0.1% to €98.70 after the Germany-based commercial vehicle maker said sales revenue in the first-quarter ending in March dropped 2% to €3.09 billion from €3.14 billion in a year ago period.

Net in the quarter swung to a loss to €10 million compared to profit of €28 million in the year ago period and diluted loss per share swung to a €0.08 from diluted earnings per share of €0.17.

Orange SA plunged 5.1% to €14.81 after the France-based telecom company reported revenues in the first-quarter ending in March dropped 1.4% to €9.67 billion from €9.80 billion in a year ago period.

Operating profit for the quarter dropped 3.3% from a year ago to €2.92 billion compared to €3.02 billion.

Revenues in France slipped 1.8% to €4.72 billion but revenues in Africa & Middle East region soared 10.8% to €1.12 billion.

During the quarter, the mobile telecom services provider added net 2.8 million customers totaling 246.9 million, with 188.2 million mobile customers and 16.1 million for fixed broadband services.

Standard Chartered Plc dropped 3.5% to 1,077 pence after the U.K.-based retail and commercial bank said total operating income in the first-quarter declined 4% to $4.39 billion from $4.57 billion and pre-tax profit plunged 22% to $1.47 billion from $1.88 billion in a year ago period.