Credit Suisse, PSA Peugeot Losses

123jump.com Staff
11 Feb, 2009
New York City

European market indexes edged higher and recover from the morning losses after Credit Suisse reported wider than expected loss. Arcelor Mittal and PSA Peugeot Citroen SA recorded a loss of

[R]2:00PM New York, 7:00 Frankfurt – Banks pull European stocks down, Credit Suisse Group reports record loss.][/R]

Financials led the decline in European stocks for a third day as the market remained unconvinced with the US plan to improve bank liquidity and lending and deal with toxic assets. The scepticism hit banks in Germany, France and Switzerland.

In Germany Commerzebank, Deutsche Boerse, Deutsche Postbank and Allianz closed lower while Axa, Cap Gemini, BNP Paribas closed lower in France.

Concerns about poor earnings and a deepening recession also weighed on the markets.

Credit Suisse Group, Switzerland’s second-biggest bank dropped in trading after it reported a record fourth-quarter loss of $5.2 billion.

Peugeot, France’s largest carmaker, reported a full year loss of 343 million euros in 2008.

Market sentiment

In Frankfurt trading the DAX Index gained 0.5% or 24.55 to 4,530.09. Of the 30 stocks in DAX index, 16 gained and 14 declined.

Daimler AG led gainers with a rise of 3.4% followed by gains in Fresenius Medical of 3.1%, in BMW of 2.3%, in K+S of 2.1% and in Man AG of 2%.

Metro led decliners with a loss of 2% followed by losses in Infineon tech of 2.9% in Deutsche Boerse of 1.2%, in Volkswagen of 1.1% and in Deutsche Post of 0.9%.

In Paris the CAC 40 rose 0.23% to 3,027.72 after dropping in early trading on losses in banks.

Sanofi-Aventis led advancers with a gain of 5.6% followed by gains in LVMH of 2.8%, in Veolia Environ of 2.3%, in Pernod Ricard of 2.2% and in Societe Generale of 2%.

AXA led decliners with a decline of 8.1% followed by losses in Air France of 4.4%, in Danone of 3.5%, in EDF of 3.2% and in BNP Paribas of 2.7%.

Earnings News

ArcelorMittal, a global steel producer reported fourth quarter sales fell 21% to $22.1 billion from $28 billion a year ago. Net loss in the quarter was $2.6 billion or $1.93 per diluted share compared to net income of $2.4 billion or $1.71 per share a year ago.

Net revenues for the fiscal year 2008 rose 19% to $124.9 billion from $105.2 billion a year ago. Net income for the fiscal year 2008 fell 9.7% to $9.4 billion $6.78 per diluted share compared to net income of $10.4 billion or $7.40 per share a year ago.

Credit Suisse Group AG, Switzerland’s second-biggest bank said fourth quarter net loss was Sfr 6.02 billion or Sfr 5.34 per diluted share compared to net profit of Sfr 540 million or 49 cents per share, a year earlier.

For the full year 2008, Net loss was Sfr 8.2 billion compared to net profit of Sfr 7.8 billion, a year earlier.

Credit Suisse Group AG, in the last one year traded as high as Sfr 57.72 in April 2008 and as low as Sfr 18.90 in November 2008. Based on the yesterday’s closing price of Sfr 25.98 the company has market cap of Sfr 27.06 billion.

Legrand SA, the world’s largest maker of electrical switches and plugs said fourth quarter revenues was €1.02 billion. Net profit in the quarter fell 53% to €57.4 million compared to net profit of €123 million, a year earlier.

Legrand SA, in the last one year traded as high as €22.16 in February 2008 and as low as €10.20 in October 2008. Based on the yesterday’s closing price was €14.19 the company has market cap of €3.67 billion.

PSA Peugeot Citroen SA, France’s biggest carmaker said full year revenues declined 7.4 % to €54.4 billion. Net loss in the full year was €343 million compared to net profit of €885 million, a year earlier.

PSA Peugeot Citroen SA, in the last one year traded as high as €53.68 in February 2008 and as low as €11.30 in December 2008. Based on the yesterday’s closing price was €13.73 the company has market cap of €3.07 billion.

Sanofi-aventis, France’s largest drugmaker said fourth quarter revenues was €7.09 billion. Net profit in the quarter rose 14% to €1.63 billion or €1.25 per diluted share compared to net profit of €1.43 billion or €1.07 per share, a year earlier.

Sanofi-aventis, in the last one year traded as high as €54.18 in February 2008 and as low as €36.06 in October 2008. Based on the yesterday’s closing price was €46.10 the company has market cap of €60.30 billion.

Europe Markets Review

In London FTSE 100 Index closed higher 21.18 or 0.50% to 4,234.26, in Paris CAC 40 Index increased 6.97 or 0.23% to close at 3,027.72 and in Frankfurt DAX index higher 24.55 or 0.54% to close at 4,530.09. In Zurich trading SMI decreased 20.92 or 0.41% to close at 5,123.77.