Natixis, Heineken, Suez Env Rise in Europe

Mayank Mehta
26 Aug, 2009
New York City

European markets edged lower on a weakness in miners and commercial banks. Natixis surged on the expectations of profit in the third quarter. Continental AG said it repaid

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets edged lower on a weakness in miners and commercial banks. Natixis surged after it expects to return to profit in the third quarter. Continental AG said it repaid €800 million of debt on time. The German business confidence index increased in August. Suez Environnement and Heineken closed higher on earnings.[/R]

Market indexes in Europe edged lower after rising for a week. The Ifo Institute said that the index of German business climate index increased to 90.5 in August from 87.4 in July. The gain in index did not help the bond yields.

In London FTSE 100 Index closed lower 26.22 or 0.53% to 4,890.58, in Paris CAC 40 Index decreased 12.27 or 0.33% to close at 3,668.34 and in Frankfurt DAX index lower 35.12 or 0.63% to close at 5,521.97. In Zurich trading SMI decreased 23.88 or 0.39% to close at 6,176.97.

Gainers & Losers

Air Berlin Plc closed flat at €3.90 after the discount airline said second quarter consolidated revenue decreased 3.8% to €836.2 million on planned capacity reductions compared to €868.9 million in the second quarter of the previous year.

Allianz SE the insurer rallied 2.7% to €81.57. Commerzbank AG rose 2.0% to €6.14. Deutsche Post AG advanced 1.1% to €11.78.

AWD Holding AG was unchanged at €30.85 after the financial advisory services reported 20% decline in revenues and net loss said it is accelerating its restructuring and efficiency programs to deal with the ongoing financial markets crisis.

BASF SE chemical company dropped 2.5% to €37.15. E.ON AG the utility fell 1.4% to €29.22.

Banca Popolare di Milano Scarl surged 7.9% to €5.27 after the bank said first-half net interest income rose 31.6% to €4.95 million from €3.76 million a year ago. Net profit in the first-half rose 275.4% to €612,000 or €0.86 per diluted share compared to net profit of €163,000 or €0.23 per share a year ago.

Conergy AG added 16.6% to €1.05 after the solar company jumps to four month high on solar park sale.

Continental AG the auto parts company rallied 5.2% to €29.75 after the company said that it repaid €800 million of debt on time.

Esprinet SpA decreased 0.2% to €7.58 after the computer and electronics distributor said first-half sales fell 10.4% to €1.03 billion from €1.15 billion a year ago. Net profit in the first-half rose 39% to €15.7 million or €0.31 per diluted share compared to net profit of €11.3 million or €0.22 per share a year ago.

HeidelbergCement AG surged 9.2% to €39.31 and the company said that Schwenk Beteiligungen GmbH & Co sold shares priced each at € 35.13 for €83.1 million. The investment company stake declined to 4.54% with 5.67 million voting shares.

ING Groep N.V surged 4.1% to €10.78 after the Dutch financial-services company said to seek $1.8 billion for private bank units.

Natixis SA advanced 34.2% to €3.09 after the bank said that it will return to profit in the third quarter and the parent Credit Agricole SA will provide a guarantee for at least €35 billion of risky assets. The bank also set the return of equity target of 12% in 2012.

Porsche Automobil Holding SE the car manufacture industry plunged 0.9% to €53.63.

RTL Group S.A rallied 10.7% to €41.49 after the television company reported net loss and said declining advertising markets across Europe result in significantly lower revenue and earnings.

Suez Environnement SA gained 7.5% to €14.01 after the water company reaches nine month high as net fell 13%, less than expected.

United Internet AG advanced 2.2% to €9.89 after the Internet service provider sells its directly held shares in freenet AG and net in the first half fell 8%.

Volkswagen AG the automobile manufacturer fell 3.2% to €139.59.

Earnings Review

Awd Holding AG, the financial advisory services provider said first-half sales fell 20% to €258.3 million from €322.9 million a year ago. Net loss in the first-half was €89 million or €0.23 per diluted share compared to net profit of €20.0 million or €0.52 per share a year ago.

Banca Popolare di Milano Scarl, the bank said first-half net interest income rose 31.6% to €4.95 million from €3.76 million a year ago. Net profit in the first-half rose 275.4% to €612,000 or €0.86 per diluted share compared to net profit of €163,000 or €0.23 per share a year ago.

Esprinet SpA, a computer and electronics distributor said first-half sales fell 10.4% to €1.03 billion from €1.15 billion a year ago. Net profit in the first-half rose 39% to €15.7 million or €0.31 per diluted share compared to net profit of €11.3 million or €0.22 per share a year ago.

Heineken N.V., the beer brewer said first-half revenues rose 11% to €7.14 billion from €6.41 billion a year ago. Net profit in the first-half rose 20% to €489 million or €1.00 per diluted share compared to net profit of €407 million or €0.83 per share a year ago.

RTL Group S.A., the broadcaster said first-half revenues fell 9.4% to €2.59 billion from €2.86 billion a year ago. Net loss in the first-half was €105 million compared to net profit of €338 million a year ago.

Suez Environnement SA, the water and waste management company said first-half revenues fell 2.6% to €5.87 billion from €6.03 billion a year ago. Net profit in the first-half fell 13% to €175 million or €0.36 per diluted share compared to net profit of €201 million or €0.41 per share a year ago.

Swiss Life Holding, the provider of life insurance and pension solutions said first-half net earned premiums fell 12.3% to CHF7.51 billion from CHF8.56 billion a year ago. Net profit in the first-half fell 91% to CHF142 million or CHF5.62 per diluted share compared to net profit of CHF1.64 billion or per share a year ago.

United Internet AG, the internet service provider said first-half sales rose 3.7% to €844.5 million from €814.3 million a year ago. Net profit in the first-half fell 7.8% to €82.7 million or €0.36 per diluted share compared to net profit of €89.7 million or €0.39 per share a year ago.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 2.86% followed by losses in BASF SE of 2.61%, in Thyssenkrupp AG of 2.34%, in Linde AG of 2.14%, in Siemens AG of 1.87%.

Beiersdorf AG led gainers in the DAX index with a rise of 3.86% followed by increase in Allianz SE of 3.29%, in Commerzbank AG of 3.07%, in Henkel AG of 1.86%, in Adidas AG of 1.48%.
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CAC-40 Index Movers

Compagnie de Saint-Gobain SA led the decliners in the CAC-40 index of 5.08% followed by losses in Bouygues SA of 3.80%, in Schneider Electric SA of 3.64%, in ArcelorMittal of 3.09%, in Renault SA of 2.84%.

Alcatel-Lucent gainers in the CAC-40 index with a rise of 11.85% followed by losses in Suez Environnement SA of 11.51%, in LVMH Moet Hennessy Louis Vuitton SA of 2.73%, in Veolia Environnement of 2.70%, in Dexia SA of 2.28%.