Weak European Indexes; BMW, Bauer Drop

Trupti Mehta
04 Aug, 2009
New York City

BMW reported net quarterly loss and indicated no change in weak outlook for the year. Bauer AG dropped 8% after net income plunged 43%. Beiersdorf AG earnings fell on weak industrial demand. Fresenius Medical reiterated annual earnings and sales outlook.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – BMW reported net quarterly loss and indicated no change in weak outlook for the year. Bauer AG dropped 8% after net income plunged 43%. Beiersdorf AG earnings fell on weak industrial demand.[/R]

European markets closed nearly unchanged after rising sharply for the last three days in a row. Resource and banking stocks were most active after the earnings from BNP Paribas and Standard & Chartered.

In London FTSE 100 Index closed lower 11.09 or 0.24% to 4,671.37, in Paris CAC 40 Index decreased 1.43 or 0.04% to close at 3,476.37 and in Frankfurt DAX index lower 9.83 or 0.18% to close at 5,417.02. In Zurich trading SMI decreased 27.65 or 0.46% to close at 5,939.78.

Gainers & Losers

BMW AG decreased 1.7% to 32.35 euros after first-half revenues fell 12% to €24.5 billion from €27.8 billion a year ago. Net loss in the first-half was €31 million or €0.04 per diluted share compared to net profit of €994 million or €1.53 per share a year ago.

BMW AG, in the last one year traded as high as €32.91 in August 2009 and as low as €17.04 in October 2008. Based on the yesterday’s closing price of €31.51 the company has market cap of €20.65 billion.

Bauer AG plunged 8.4% to 23.93 euros after it lowered its earnings and revenue outlook for the year and net profit decline of 43% to 21.1 million euros in the first half on sales decline of 5.4% to 681 million euros.

Beiersdorf AG, the consumer goods producer decreased 1.9% to 34.80 euros after first-half sales fell 6.5% to €2.9 billion from €3.1 billion a year ago. Net profit in the first-half fell 36% to €186 million or €0.82 per diluted share compared to net profit of €290 million or €1.28 per share a year ago.

BNP Paribas SA increased 0.3% to 52.70 euros after second quarter revenues rose 32.8% to €9.99 billion from €7.52 billion a year ago. Net profit in the quarter rose 6% to €1.60 billion compared to net profit of €1.51 billion a year ago.

Capelli decreased 11% to 1.51 euros after first quarter revenues plunged 49% to 6.5 million euros. The building lot developer estimated better second half on improved financing conditions for home buyers.

Fresenius Medical Care AG decreased 3.6% to 31.61 euros net sales in the second quarter increased 4.7% to $2.8 billion and net income gained approximately 5% to 4221 million or 74 cents a share. the dialysis company reiterated its annual sales target of $11.1 billion and net income between $850 million and $890 million.

Le Noble Age SA increased 4.8% to 15.49 euros after second quarter net income increased 34% to 44.7 million euros.

Poincin Yachts increased 1.8% to 1.14 euros after it reported first half net loss of 1.14 euros compared to loss of 31.3 million.

UBS AG declined 4.3% to CHF15.31 after second quarter net interest income fell 8% to CHF1.14 billion from CHF1.24 billion a year ago. Net loss in the quarter was CHF1.4 billion or CHF0.39 per diluted share compared to net loss of CHF395 million or CHF0.16 per share a year ago.

DAX Index Movers

Fresenius Medical Care AG led the decliners in the DAX index of 2.85% followed by losses in Fresenius SE of 2.45%, in Muenchener Rue AG of 2.27%, in CommerzBank AG of 1.88%, in Beiersdorf AG of 1.58%.

Allianz SE led gainers in the DAX index with a rise of 2.78% followed by increase in Hannover Rue AG of 1.44% in Thyssenkrupp AG of 1.38%, in SAP AG of 0.94%, in Deutsche Lufthansa AG of 0.74%.

CAC-40 Index Movers

L’Oreal SA led the decliners in the CAC-40 index of 1.92% followed by losses in EADS NV of 1.55%, in LVMH SA of 1.53%, in Compagnie de Saint-Gobain SA of 1.49%, in Alstom SA of 1.46%.

Alcatel Lucent gainers in the CAC-40 index with a rise of 4.46% followed by gains in Air France-KLM SA of 4.28%, in Credit Agricole SA of 3.16%, in Accor SA of 2.47%, in Sanofi-Aventis of 1.32%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 49 increased, 51 declined and 2 were unchanged.

Standard Chartered Plc decliners in the FTSE 100 index with a loss of 7.52% followed by losses in Legal & General Group Plc of 4.75%, in Antofagasta Plc of 4.39%, in Cobham Plc of 2.70%, in Anglo American Plc of 2.57%.

Autonomy Corporation Plc led gainers in the FTSE 100 index with a rise of 5.58% followed by increase in The British Land Company Plc of 4.15%, in Reed Elsevier Plc of 3.43%, in British Airways Plc of 3.23%, in Land Securities Group Plc of 3.04%.