European Banks Rise; Adidas, Metro Drop

123jump.com Staff
05 May, 2009
New York City

European stocks declined after rally in recent days ran out of steam. Banks increased after UBS reported smaller than expected loss. Adidas AG and Metro AG declined on weak earnings. German auto sales increased 14% in April.

[R]8:00PM London, 9:00PM Frankfurt – European stocks declined after rally in recent days ran out of steam. Banks increased after UBS reported smaller than expected loss. Adidas AG and Metro AG declined on weak earnings. German auto sales increased 14% in April.[/R]

Stocks in Europe declined after investors cautioned that recent rally is not supported by fundamental improvement in the financial and economic conditions. Banks increased in European trading after UBS reported smaller than expected loss.

Weak earnings from Adidas and Metro also dragged sentiment in Frankfurt trading.

Adidas AG declined 11% to 26.20 euros after its earnings slumped 97%. Metro AG fell 4% to 31.86 euros after its first quarter loss surged nearly 7 times from a year ago. The news of loss also dragged Carrefour in Paris.

Demag Cranes AG declined 4.1% to 16.30 euros after it reported second quarter revenues declined 4.8% to 268 million euros and six months revenues were nearly flat of 571.2 million euros. The orders in the quarter declined 43%. The company declined to estimate earnings and sales for the full year.

Deutsche Post increased 6.9% to 9.81 euros after Reuters suggested that the company has no plans to buy Royal Mail.

German vehicle sales increased 14.1% to 432,381 in April lifting stocks of Daimler and BMW.

Renault SA increased 3% after it planned to sell property to raise 1 billion of euros according to Le Monde newspaper and Bloomberg reported that the company is planning to raise 750 million euros issuing 3-year bonds.

Alcatel-Lucent increased 0.1% to 1.95 after it reported first quarter loss of 402 million euros compared to a loss of 181 million euros. The company is working on a plan to cut 2 billion euros of cost and eliminate at least 17,000 jobs.

Earnings News

Adidas AG, the world’s second-largest sporting-goods maker said first quarter sales fell 2% to €2.57 billion from €2.62 billion a year ago. Net profit in the quarter fell 97% to €5 million or €0.04 per diluted share compared to net profit of €169 million or €0.79 per share a year ago.

Deutsche Postbank AG, the German retail lender said first quarter net interest income rose 13.6% to €633 million from €557 million a year ago. Net profit in the quarter fell 28% to €84 million or €0.38 per diluted share compared to net profit of €117 million or €0.71 per share a year ago.

Hannover Re, Germany’s second-biggest reinsurer said first quarter net profit in the quarter rose 42% to €216 million or €1.79 per diluted share compared to net profit of €152 million or €1.26 per share a year ago.

Linde AG, the world’s second-biggest maker of industrial gases said first quarter sales fell 7.6% to €2.7 billion from €2.92 billion a year ago. Net profit in the quarter fell 28% to €115 million or €0.68 per diluted share compared to net profit of €160 million or €0.95 per share a year ago.

METRO AG, Germany’s largest retailer said first quarter sales fell 2.5% to €15.2 billion from €15.6 billion a year ago. Net loss in the quarter was €100 million or €0.31 per diluted share compared to net loss of €15 million or €0.04 per share a year ago.

UBS AG], the European bank said first quarter net profit in the quarter fell 83% to Sfr 1.98 billion or Sfr 0.57 per diluted share compared to net profit of Sfr 11.6 billion or Sfr 5.27 per share a year ago.

FTSE 100 Index Gainers & Losers

William Morrison Supermarkets led decliners in the FTSE 100 index with a loss of 3.4% followed by losses in British Sky Broadcasting of 2.8%, in Home Retail Group of 2.5%, in Amlin Plc of 2.3%, in Scottish & South of 2.2%.

British Airways Plc led gainers in the index with a rise of 12.1% followed by gains in Vedanta Resources of 11.5%, in Lloyds Banking Group of 10.5%, in Prudential Plc of 10.1%, in Kazakhmys Plc of 10%. Royal Bank of Scotland and Eurasian Natural gained more than 9%.

DAX Index Gainers

DAX index lost 1.01% to 4,853.03 and 21 of the 30 stocks in the index declined and 9 rose.

Adidas AG led decliners in the DAX index with a loss of 10.4% followed by losses in Metro AG of 3.8%, in Deutsche Boerse of 3.2%, in SAP AG of 3.1%, and in Fresenius SE of 3.1%.

Deutsche Post led gainers in the DAX index with a rise of 6.5% followed by increase in Commerzbank of 3.9%, in Deutsche Lufthansa of 2%, in BMW of 1.75% and in Daimler AG of 1.4%.

CAC-40 Gainers & Losers

The CAC-40 index declined 0.4% to 3,225.00. Of the stocks in the index 23 declined and 17 increased.

Societe Generale led gainers in the CAC-40 with a rise of 8.2% followed by gains in EADS of 4.6%, in Saint Gobain of 3.1%, in Renualt of 3%, and in Michelin of 2.3%.

Alstom led decliners in the CAC-40 index with a loss of 4.5% followed by losses in Carrefour of 3%, in EDF of 2.7%, in GDF Suez of 2.7%, in Cap Gemini of 2.67%.

Europe Markets Review

In London FTSE 100 Index closed higher 93.72 or 2.21% to 4,336.94, in Paris CAC 40 Index decreased 12.97 or 0.40% to close at 3,225.00 and in Frankfurt DAX index lower 49.42 or 1.01% to close at 4,853.03. In Zurich trading SMI decreased 37.41 or 0.70% to close at 5,280.93.