UBS Raise $3.5 Billion; Second Quarter Loss

123jump.com Staff
25 Jun, 2009
New York City

European industrial orders index declined in April. Lufthansa grounded 25 planes to lower capacity and plans to cut 300 million euros cost. UBS raised 3.5 Swiss francs 3.8 billion through share placement and said company will declare loss in the second quarter.

[R]7:00 PM Frankfurt, Paris; 2:00 PM New York – European industrial orders index declined in April. Lufthansa grounded 25 planes to lower capacity and plans to cut 300 million euros cost.[/R]

Industrial order index fell 1% in April from March and in the wider euro zone of 27 nations the index dropped 0.5%. From a year ago, new orders index dropped 35.5% in the euro area and by 35% in the wider 27 nations region.

UBS placed 293.35 million at Sfr13 a share and raised after the expenses to Sfr3.8 billion. the bank also said the it will declare loss in the second quarter on charges related to restructuring which were previously released. Net new money flows in the asset and wealth management have been negative in the quarter to date.

Gainers & Losers

Deutsche Lufthansa AG increased 1.6% to 8.77 euros after the airline reported it will reduce its capacity by 1.6% this year and said it will ground 25 planes in the rest of the year. The company also plans to trim 300 million euros.

Kloeckner & Co SE increased 2.6% to 14.32 euros a day after the company said it has 1.6 billion euros capital for acquisition and JP Morgan Chase increased its price target to 17 euros.

Bauer AG declined 3.3% to 27.47 euros after it said that at the time of half-year results on August 14 it will offer new guidance for the year. The company said that equipment unit is harder than expected.

Phoenix Solar AG plunged 14% to 34.45 euros after it said that it may not meet its 31 million euros earnings estimate in early January on the continued fall in solar module prices. The company maintained its revenues guidance of 520 million euros.

Porsche SE soared 7.6% to 46.35 euros after the media reports suggested that the auto maker may sell its stake in Volkswagen to sovereign funds of Qatar.

Credit Agricole SA declined 3.9% to 9.14 euros after several analysts lowered earnigs estimates of the bank. Bouygues SA increased 3.7% to 27.58 euros after Goldman Sachs added lifted its outlook on the company.

Total SA declined 1.2% to 38.04 euros and ArcelorMittal decreased 1.3% to 23.39 euros.

Sanofi Aventis SA dropped 4.6% to 44.45 euros after UBS research report reiterated recently talked about concern about the Lantus diabetes treatment.

Earnings Review

H & M Hennes & Mauritz AB, the clothing retailer said second quarter revenues rose 23% to SEK26.5 billion from SEK21.6 billion a year ago. Net profit for the quarter rose 6% to SEK4.19 billion or SEK5.07 per diluted share compared to net profit of SEK3.94 billion or SEK4.76 per share a year ago.

Suedzucker AG, the sugar producer said full-year revenues rose 2% to €5.9 billion from €5.8 billion a year ago. Net profit for the year rose 83.6% to €183.2 million or €0.86 per diluted share compared to net profit of €99.7 million or €0.10 per share a year ago.

Suedzucker AG, in the last one year traded as high as €15.90 in April 2009 and as low as €7.05 in October 2008. Based on the yesterday’s closing price of €14.35 the company has market cap of €2.73 billion.

Europe Markets Review

In London FTSE 100 Index closed lower 27.41 or 0.64% to 4,252.57, in Paris CAC 40 Index decreased 21.66 or 0.68% to close at 3,163.10 and in Frankfurt DAX index lower 35.45 or 0.73% to close at 4,800.56. In Zurich trading SMI decreased 82.12 or 1.51% to close at 5,361.30.

DAX Index Movers

K+S AG led the decliners in the DAX index of 3.38% followed by losses in Volkswagen AG of 3.12%, in BASF SE of 2.21%, in Merck KGaA AG of 1.28%, in Commerzbank AG of 1.10%.

Salzgitter AG led gainers in the DAX index with a rise of 3.19%, followed by increase in Hannover Rueckversicherung AG of 2.49%, in Beiersdorf AG of 2.47%, in Deutsche Bank AG of 1.67%, in Deutsche Lufthansa AG of 1.55%.

CAC-40 Index Movers

Sanofi-Aventis led the decliners in the CAC-40 index of 4.57% followed by losses in Credit Agricole SA of 3.90%, in PSA Peugeot Citroen S.A. of 1.75%, in Carrefour SA of 1.63%, in EADS NV 1.44%.

Bouygues SA gainers in the CAC-40 index with a rise of 3.680% followed by gains in STMicroelectronics N.V. of 2.49%, in Michelin SCA of 1.97%, in Unibail-Rodamco SA of 1.53%, in Pernod Ricard SA of 1.49%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 53 increased, 47 declined and 2 were unchanged.

Prudential Public Limited Company decliners in the FTSE 100 index with a loss of 2.52% followed by losses in HSBC Holdings plc of 2.44%, in GlaxoSmithKline plc of 2.39%, in Rio Tinto plc of 2.39% and in Standard Chartered Plc of 2.34%.

Petrofac Limited led gainers in the FTSE 100 index with a rise of 4.51% followed by increase in The Royal Bank of Scotland Group plc of 3.35% in Wolseley Plc of 3.16%, in Standard Life plc of 2.40%, in Marks and Spencer Group plc of 2.19%.