Mixed Markets in Europe; Bilfinger Up 7.5%

Mayank Mehta
10 Nov, 2009
New York City

European markets closed mixed after two UK banks reported diverging views of earnings and loan losses. European banks closed lower. E.ON agreed to sell its German power network to Tennet BV of Holland. Volkswagen fell after Qatar plans to sell preferred stocks.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed mixed after two UK banks reported diverging views of earnings and loan losses. European banks closed lower. E.ON agreed to sell its German power network to Tennet BV of Holland. Volkswagen fell after Qatar plans to sell preferred stocks.[/R]

Banks in Europe closed lower after Barclays reported weaker than expected earnings but HSBC indicated stronger than anticipated earnings in the latest quarter. Volkswagen declined after Qatar fund plans to sell preferred stocks. Bilfinger Berger AG surged on earnings and speculation that its Australian unit listing could raise as much as $1 billion or more.

In London FTSE 100 Index closed lower 0.76 or 0.01% to 5,234.42, in Paris CAC 40 Index increased 0.63 or 0.02% to close at 3,786.12, in Frankfurt DAX index lower 3.21 or 0.06% to close at 5,616.51. In Zurich trading SMI decreased 17.65 or 0.28% to close at 6,367.49.

E.ON AG agreed to sell its German power network to Holland based Tennet BV for €1.1 billion. The sale will help E.ON to meet its EU regulatory antitrust regulatory requirement. With the sale, E.ON has raised $6 billion of energy assets including 20% of its power generation capacity.

Gainers & Losers

Areva SA added 0.2% to €368.80 after the builder of nuclear reactors said sale of its stake in French nickel group Eramet SA are ""tough,"" French business daily Les Echos reports Tuesday, citing sources close to French sovereign fund Fonds Strategique d''Investissement.

Arkema SA decreased 5.5% to €26.50 after the specialty chemicals company said third quarter revenues fell 24% to €1.10 billion from €1.45 billion a year ago. Net loss in the quarter was €3 million or €0.05 per diluted share compared to net profit of €40 million or €0.66 per share a year ago.

BASF SE the chemical company rose 0.2% to €38.58.

Bilfinger Berger AG increased 7.5% to €52 after the builder said Tuesday it is considering an initial public offering of its Australian arm, which could raise around A$1.5 billion according to analysts.

BMW AG fell 1.6% to €32.92.

CGG Veritas rose 0.07% to €14.99 after the manufacturer of geophysical equipment said third quarter revenues fell 26% to €512.2 million from €691.6 million a year ago. Net profit in the quarter fell 92% to €8.4 million or €0.05 per diluted share compared to net profit of €105.4 million or €0.74 per share a year ago.

Fondiaria-SAI SpA an insurer said third quarter revenues rose 36% to €3.73 billion from €2.74 billion a year ago. Net loss in the quarter was €24 million compared to net profit of €98.3 million a year ago.

Generali Deutschland Holding AG an international insurance group said nine months gross premium written rose 5.4% to €9.35 billion from €8.87 billion a year ago. Net profit in the nine months rose 343% to €254.3 million or €4.74 per diluted share compared to net profit of €57.4 million or €1.07 per share a year ago.

GFI Informatique SA fell 2.3% to €3.30 after the information technology provider said third quarter revenues fell 6.3% to €169.2 million from €180.6 million a year ago. France revenues fell 7.7% to €111.1 million from €120.3 million a year ago.

Intesa Sanpaolo SpA added 1.9% to €2.96 after the banking group said nine months net interest income rose 1,086% to €356 million from €30 million a year ago. Net profit in the nine months rose 140% to €410 million compared to net profit of €171 million a year ago.

IVG Immobilien AG rose 1.5% to €6.56 after the real estate company was upgraded to “buy” from “hold” at UniCredit Markets & Investment Banking.

Jenoptik AG the maker of optical equipment slipped 1.8% to €3.77.

LEONI AG the maker of automotive electrical cables fell 4.4% to €14.22.

Meetic SA rose 0.05% to €20.40 an online dating service provider said nine months revenues rose 20.8% to €117.2 million from €97.0 million a year ago. Net profit in the nine months was €12.6 million.

Qiagen NV climbed 2.5% to €15.22 after the genetic-tests specialist said third quarter revenues rose 12.5% to $259.7 million from $230.8 million a year ago. Net profit in the quarter rose 81% to $37.7 million or $0.18 per diluted share compared to net profit of $20.8 million or $0.10 per share a year ago.

Rougier SA rose 0.5% to €27.00 after the producer of wood said nine months total revenues rose 3% to €139.6 million from €135.4 million a year ago. Property rentals revenues rose 3.2% to €139.5 million from €135.2 million a year ago.

RWE AG rose 0.4% to €60.73 after the utility said a new player in the British nuclear market has been formally launched by the United Kingdom subsidiaries of German energy giants and E. ON AG.

Saras SpA - Raffinerie Sarde declined 3.5% to €2.13 an oil refinery said third quarter revenues fell 43% to €1.42 billion from €2.45 billion a year ago. Net loss in the quarter was €49.6 million or €5.35 per diluted share compared to net loss of €19.7 million or €2.08 per share a year ago.

Sodexo SA slipped 6.7% to €38.43 after the food and facilities management services provider said full-year revenues rose 7.9% to €14.68 billion from €13.61 billion a year ago. Net profit in the full-year rose 4.5% to €393 million or €2.54 per diluted share compared to net profit of €376 million or €2.42 per share a year ago.

Volkswagen AG decreased 3.2% to €107.29 after the automobile manufacturer said Qatar to sell up to 25 million preferred shares in the company.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 7.68%, followed by losses in Commerzbank AG of 2.29%, in Salzgitter AG of 2.03%, in BMW AG of 1.88%, K+S AG of 0.72%.

Henkel AG led gainers in the DAX index with a rise of 2.39% followed by increase in Fresenius Medical Care AG & Co. KGaA of 1.83%, in Beiersdorf AG of 1.41%, in Fresenius SE of 1.33%, BASF SE of 1.22%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index of 5.84%, followed by losses in Renault SA of 2.88%, in STMicroelectronics N.V. of 2.37%, in Michelin SCA of 2.10%, ArcelorMittal of 1.61%.

Veolia Environnement gainers in the CAC-40 index with a rise of 1.93% followed by gainers in Dexia SA of 1.76%, Electricite de Strasbourg SA of 1.36%, in Unibail-Rodamco SA of 0.97%, in Cap Gemini SA of 0.96%.