Volkswagen, Alcatel Lift European Indexes

Mayank Mehta
30 Jul, 2009
New York City

Stocks in Europe gained on better than expected earnings from Volkswagen. BASF reported 74% decline in earnings and may trim dividend. Siemens third quarter orders decreased 28%. France Telecom net profit fell 4.3%. Volkswagen sales fell 7.7% and net profit fell 83%.

[R]6:00PM Frankfurt, Germany – Stocks in Europe gained on better than expected earnings from Volkswagen. BASF reported 74% decline in earnings and may trim dividend. Siemens third quarter orders decreased 28%. France Telecom net profit fell 4.3%. Volkswagen sales fell 7.7% and net profit fell 83%.[/R]

The benchmark index in Germany increased after Volkswagen reported better than expected earnings and unemployment in July increased 52,000 to 3.46 million. The consumer confidence is also on the rebound in July, fourth monthly gain.

Siemens AG reported third quarter orders declined 28% to 17.2 billion euros and book to bill ratio decline below in the quarter.

Gainers & Losers

Air Liquide SA, edged down 0.1% to 72 euros after the maker of industrial gases said first-half sales fell 6.8% to €5.94 billion. Net profit in the quarter fell 0.8% to €596 million or €2.30 per diluted share compared to net profit of €601 million a year ago.

Alcatel Lucent surged 10% to 1.98 euros after the telecom gear maker said second quarter revenues fell 4.6% to €3.91 billion from €4.10 billion a year ago. Net profit in the quarter was €14 million or €0.01 per diluted share compared to net loss of €1.10 billion or €0.49 per share a year ago.

Electricite de Strasbourg SA decreased 1.4% to 99.51 euros after the electricity distributor said first-half revenues rose 8.2% to €34.9 billion. Net profit in the first-half was flat at €3.12 billion compared to net profit of €3.12 billion a year ago.

France Telecom S.A. increased 3.3% to 17.6% after the third largest phone company said first-half sales fell 3.2% to €25.46 billion from €25.58 billion a year ago. Net profit in the quarter fell 4.3% to €2.56 billion compared to net profit of €2.68 billion a year ago.

Renault SA 1.5% to 28.94 euros after the second largest carmaker said first-half revenues fell 23.7% to €16 billion from €20.9 billion a year ago. Net loss in the first-half was €2.71 billion compared to net profit of €1.58 billion a year ago.

SCOR SE surged 6.5% to 16.60 euros after the global reinsurer said first-half gross written premiums rose 18.4% to €3.25 billion from €2.75 billion a year ago. Net profit in the first-half fell 24% to €184 million or €1.03 per diluted share compared to net profit of €242 million or €1.35 per share a year ago.

Volkswagen AG surged 5.7% to 13.75 euros after the automobile manufacturer said second quarter sales fell 7.7% to €27.2 billion from €29.4 billion a year ago. Net profit in the quarter fell 83% to €283 million or €0.71 per diluted share compared to net profit of €1.64 billion or €4.12 per share a year ago.

Europe Markets Review

In London FTSE 100 Index closed higher 84.08 or 1.85% to 4,631.61, in Paris CAC 40 Index increased 69.87 or 2.08% to close at 3,435.49 and in Frankfurt DAX index higher 90.34 or 1.71% to close at 5,360.66. In Zurich trading SMI increased 145.43 or 2.51% to close at 5,932.62.

DAX Index Movers

BASF SE led the decliners in the DAX index of 1.96% followed by losses in Deutsche MAN SE of 0.78%, in Deutsche Bank AG of 0.19%, in Fresenius Medical Care AG of 0.06%, in Siemens AG of 0.05%.

Volkswagen AG led gainers in the DAX index with a rise of 5.48% followed by increase in Deutsche Post AG of 5.18% in Thyssenkrupp AG of 5.12%, in SAP AG of 3.59%, in Deutsche Telekom AG of 3.14%.

CAC-40 Index Movers

Dexia SA led the decliners in the CAC-40 index of 0.43% followed by losses in Lagardere SCA of 0.39%, in Accor SA of 0.24%, in Sanofi-Aventis SA of 0.16%, in STMicroelectronics N.V. of 0.13%.

Alcatel Lucent. gainers in the CAC-40 index with a rise of 9.36% followed by gains in Cap Gemini SA of 8.10%, in ArcelorMittal of 6.63%, in Compagnie de Saint-Gobai SA of 6.01%, in Electricite de Strasbourg SA of 5.43%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 83 increased, 17 declined and 2 were unchanged.

Reed Elsevier Plc decliners in the FTSE 100 index with a loss of 12.55% followed by losses in BAE System Plc of 4.88%, in Centrica Plc of 2.92%, in Pennon Group Plc of 2.62%, in Severn Trent Plc of 2.06%.

BT Group Plc led gainers in the FTSE 100 index with a rise of 12.60% followed by increase in Wolseley Plc of 10.17%, in Rolls-Royce Group Plc of 8.73%, in Lonmin Plc of 8.37%, in Eurasian Natural Resources Corporation Plc of 8.32%.