European Market Surge; Sanofi, Akzo, Bayer Gain

123jump.com Staff
29 Jul, 2009
New York City

European markets closed higher after earnings lifted stocks in chemical, drugs auto and industrial sectors. Bayer, Akzo Nobel and Sanofi gained. SAP second quarter sales fell 10%. Daimler took

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher after earnings lifted stocks in chemical, drugs auto and industrial sectors. Bayer, Akzo Nobel and Sanofi gained. SAP second quarter sales fell 10%.[/R]

European markets edged higher after Sanofi, Bayer and Akzo Nobel reported better than expected earnings. Automakers struggled with earnings.

The benchmark DAX 30 index in Germany increased 1.85% to 5,270.32 and in Paris CAC-40 added 1.04% to 3,365.62 and the benchmark index in Italy, FTSE MIB gained 1.35% to 20,281.97.

Daimler and PSA Peugeot reported losses in the second quarter despite cost cutting and government subsidies to European auto buyers. Daimler indicated a gradual recovery in the operating profit on the hopes of higher sales worldwide.

The monthly auto sales decline has been receding but sales are still lower than a year ago. Production at Daimler is expected to increase in the next few months on the hopes of better economic conditions in the second half.

Daimler took €387 million charge related to its divestment in Chrysler stake.

SAP AG reported second quarter sales fell 10% to €2.58 billion and net earnings increased 4% to €423 million. Software license revenues dropped 40% to €543 million.

Gainers & Losers

ArcelorMittal, the global steel producer declined 4.4% to 24.20 euros after second quarter sales fell 54% to €11.1 billion from €24.2 billion a year ago. Net loss in the quarter was €581 million or €0.42 per diluted share compared to net profit of €3.7 billion or €2.69 per share a year ago.

Bayer AG, the chemical and plastics maker surged 5.5% to 42.23 euros after second quarter sales fell 5.9% to €8.0 billion from €8.5 billion a year ago. Net profit in the quarter fell 7.3% to €532 million or €0.67 per diluted share compared to net profit of €574 million or €0.73 per share a year ago.

Daimler AG increased 4.5% to 31.46 euros after second quarter sales fell 25% to €19.6 billion from €26 billion a year ago. Net loss in the quarter was €1.06 billion compared to net profit of €1.4 billion a year ago.

Daimler AG, in the last one year traded as high as €43.37 in August 2008 and as low as €17.44 in March 2009. Based on the yesterday’s closing price of €31.60 the company has market cap of €32.41 billion.

Deutsche Postbank AG, the financial services provider increased 3.2% to 20.10 euros after second quarter net loss in the quarter was €42 million share compared to net profit of €121 million a year ago.

Deutsche Postbank AG, in the last one year traded as high as €46.55 in September 2008 and as low as €7.26 in March 2009. Based on the yesterday’s closing price of €20.11 the company has market cap of €4.40 billion.

PSA Peugeot Citroen S.A., the manufacturer of passenger cars and light commercial vehicles surged 10.9% to 20.42 euros after first-half revenues fell 21.8% to €23.5 billion from €30.1 billion a year ago. Net loss in the first-half was €962 million compared to net profit of €733 million a year ago.

PSA Peugeot Citroen S.A., in the last one year traded as high as €35.46 in August 2008 and as low as €11.38 in December 2008. Based on the yesterday’s closing price of €20.20 the company has market cap of €4.58 billion.

Sanofi-Aventis, the pharmaceutical group increased 0.3% to 47.12 euros after second quarter sales rose 10.4% to €7.4 billion from €6.9 billion a year ago. Net profit in the quarter rose 29% to €2.27 billion or €1.74 per diluted share compared to net profit of €1.74 billion or €1.34 per share a year ago.

Sanofi-Aventis, in the last one year traded as high as €50.90 in September 2008 and as low as €37.92 in October 2008. Based on the yesterday’s closing price of €46.78 the company has market cap of €61.08 billion.