Economies of Germany, France, Italy Shrink

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

Euro zone economies declined at the fastest pace in thirteen years. The GDP declined at 2.5% in the first quarter on weak exports and falling consumer spending. German economy shrank at 3.8%, Italian declined at 2.4% and French GDP fell at 1.2%.

[R]8:00PM Paris, Frankfurt – Euro zone economies declined at the fastest pace in thirteen years. The GDP declined at 2.5% in the first quarter on weak exports and falling consumer spending.[/R]

The economy in the euro-zone declined 2.5% in the first quarter ending in March from the fourth quarter of 2008. The decline was same in both sixteen member nations and in the extended 27 countries that includes nations with economies that are linked to the euro.

The economies of EU16 zone declined 4.6% from a year ago and fell 4.4% in the EU27 zone. The decline is deepest in the developed world and if continued the economy in the region may fall more than 7% for the year. Economies in the region are expected to rebound in the fourth quarter.

The euro declined against dollar and yen.

German GDP declined at 3.8% in the first quarter ending in March compared the fourth quarter of 2008 and declined 6.7% from a year ago. The annualized rate is higher than 10%. The U.S. economy declined at more than 6% annual rate in the first quarter.

The GDP in France in the first quarter declined 1.2% compared to the fourth quarter. Italian GDP declined 2.4% and a day ago Spain reported 1.8% contraction in the first quarter from the fourth quarter of 2008.

Earnings Review

Banco Popolare Societa Cooperativa, an Italy-based banking company said first quarter net interest income fell 3.5% to €532 million from €551.7 million a year ago. Net profit in the quarter fell 16% to €219 million compared to net profit of €260 million a year ago.

Banco Popolare Societa Cooperativa, in the last one year traded as high as €13.80 in May 2008 and as low as €1.86 in March 2009. Based on the yesterday’s closing price of €6.07 the company has market cap of €3.89 billion.

Intesa Sanpaolo SpA, Italy’s biggest bank said first quarter net interest income fell 4% to €2.7 billion from €2.8 billion a year ago. Net profit in the quarter fell 39% to €1.1 billion or €0.08 per diluted share compared to net profit of €1.75 billion or €0.14 per share a year ago.

Intesa Sanpaolo SpA, in the last one year traded as high as €4.75 in May 2008 and as low as €1.30 in March 2009. Based on the yesterday’s closing price of €2.31 the company has market cap of €29.52 billion.

KBC Groep NV, the Belgian bank and insurer first quarter net interest income rose 25% to €1.5 billion from €1.2 billion a year ago. Net loss in the quarter was €3.6 billion or €10.57 per diluted share compared to net profit of €554 million or €1.62 per share a year ago.

KBC Groep NV, in the last one year traded as high as €15.45 in May 2008 and as low as €11.15 in March 2009. Based on the yesterday’s closing price of €14.34 the company has market cap of €4.87 billion.

Natixis SA, the French investment bank said first quarter revenues fell 92% to €106 million from €1.37 billion a year ago. Net loss in the quarter was €1.84 billion compared to net profit of €69 million a year ago.

Natixis SA, in the last one year traded as high as €12.54 in May 2008 and as low as €0.76 in March 2009. Based on the yesterday’s closing price of €1.43 the company has market cap of €4.13 billion.

Parmalat SpA, Italy’s biggest food company said first quarter sales fell 3% to €899.4 million from €926.9 million a year ago. Net profit in the quarter rose 95.5% to €176.3 million or €0.1030 per diluted share compared to net profit of €90.2 million or €0.0529 per share a year ago.

Parmalat SpA, in the last one year traded as high as €2.03 in May 2008 and as low as €1.12 in December 2008. Based on the yesterday’s closing price of €1.52 the company has market cap of €2.58 billion.

SBM Offshore N.V., the world’s largest supplier of floating oil production platforms said full-year revenues rose 7% to €3.1 billion from €2.9 billion a year ago. Net profit in the quarter fell 14.6% to €223 million or €1.53 per diluted share compared to net profit of €266.8 million or €1.88 per share a year ago.

SBM Offshore N.V., in the last one year traded as high as €11.87 in May 2008 and as low as €10.61 in December 2008. Based on the yesterday’s closing price of €11.56 the company has market cap of €1.68 billion.

STADA Arzneimittel AG, the generic-drug maker said first quarter sales fell 6% to €375.9 million from €399.0 million a year ago. Net profit in the quarter fell 20% to €24.1 million or €0.41 per diluted share compared to net profit of €30.3 million or €0.50 per share a year ago.

Vivendi SA, owner of the world’s largest music company said first quarter sales rose 24% to €6.5 billion from €5.3 billion a year ago. Net profit in the quarter fell 14% to €477 million or €0.40 per diluted share compared to net profit of €555 million or €0.47 per share a year ago.

Vivendi SA, in the last one year traded as high as €27.44 in June 2008 and as low as €16.32 in October 2008. Based on the yesterday’s closing price of €18.95 the company has market cap of €24.00 billion.

Europe Markets Review

In London FTSE 100 Index closed lower 14.47 or 0.33% to 4,348.11, in Paris CAC 40 Index increased 12.76 or 0.40% to close at 3,169.05 and in Frankfurt DAX index lower 0.97 or 0.02% to close at 4,737.50. In Zurich trading SMI decreased 9.33 or 0.17% to close at 5,350.67.

DAX Index Movers

Linde AG led the decliners in the DAX index of 2.93% followed by losses in Allianz SE of 2.51%, in E.ON AG of 2.41%, in Muenchener Rueckversicherungs AG of 2.27%, in Deutsche Post AG of 1.68%.

Deutsche Boerse AG led gainers in the DAX index with a rise of 5.53% followed by gains in K+S AG of 4.81%, in MAN AG of 3.12% and Deutsche Bank AG of 1.96% in Commerzbank AG of 1.80%.

CAC-40 Index Movers

Cap Gemini SA led the decliners in the CAC-40 index of 3.43% followed by losses in Alcatel Lucent of 1.95%, in Sanofi-Aventis S.A. of 1.49% in Accor SA of 1.40%, in Carrefour SA of 1.33%.

Dexia SA gainers in the CAC-40 index with a rise of 4.90% followed by losses in ArcelorMittal of 4.20%, in STMicroelectronics N.V. of 3.39%, in EADS NV of 2.74% and in Societe Generale SA of 2.57%.