Euro-zone Expands; Dexia Swings to Profit

Mayank Mehta
13 Nov, 2009
New York City

The euro zone economy expanded at 0.4% in the 16-nation region and at 0.2% in the wider 27-nation region. Economies in Germany expanded at 0.7%. Mondadori Editore nine months net profit falls 54%. Benetton Group third quarter net up on higher sales. Dexia swings to third quarter profit.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – The euro zone economy expanded at 0.4% in the 16-nation region and at 0.2% in the wider 27-nation region. Economies in Germany expanded at 0.7%. Mondadori Editore nine months net profit falls 54%. Benetton Group third quarter net up on higher sales. Dexia swings to third quarter profit. Porsche SE sees loss of €4.4 billion.[/R]

Euro-zone of 16 nations reported third quarter economic growth of 0.4% from the second quarter according to the latest data from the statistics office of European Union. In the wider region of 27 nations the economy expanded at 0.2%.

The euro-zone economy declined at 4.1% in the quarter from a year ago after it fell at 4.8% in the second quarter.

In London FTSE 100 Index closed higher 19.88 or 0.38% to 5,296.38, in Paris CAC 40 Index decreased 2.06 or 0.05% to close at 3,806.01, in Frankfurt DAX index higher 22.87 or 0.40% to close at 5,686.83. In Zurich trading SMI decreased 4.68 or 0.07% to close at 6,351.08.

Gainers & Losers

Accor SA gained 3.0% to €35.27 after the hotel company was upgraded to “buy” from “add” at Natixis SA.

Arnoldo Mondadori Editore SpA decreased 0.6% to €3.23 an editorial group said nine months sales fell 19% to €1.11 billion from €1.37 billion a year ago. Net profit for the nine months fell 54% to €27.1 million or €0.11 per diluted share compared to net profit of €58.8 million or €0.25 per share a year ago.

Benetton Group S.p.A declined 1.4% to €6.77 after the clothing retailer said third quarter revenues rose 13% to €609 million from €538 million a year ago. Net profit for the quarter rose 46% to €54 million compared to net profit of €37 million a year ago.

Bulgari SpA added 4.3% to €6.25 after the luxury jeweler said third quarter revenues fell 9% to €233.2 million from €256.2 million a year ago. Net profit for the quarter fell 69.6% to €7 million compared to net profit of €23 million a year ago.

Compagnie Financiere Richemont SA the luxury goods company said first-half revenues fell 14.3% to €2.4 billion from €2.8 billion a year ago. Net profit for the first-half fell 60% to €344 million or €0.62 per diluted share compared to net profit of €862 million or €1.53 per share a year ago.

Conergy AG closed unchanged at €0.74 after the solar company said third quarter net loss for the quarter was €20 million compared to net loss of €77.5 million a year ago.

Dexia SA fell 0.3% to €5.67 after the bank said third quarter revenues rose 334.6% to €1.37 billion from €315 million a year ago. Net profit for the quarter was €274 million or €0.16 per diluted share compared to net loss of €1.54 billion or €1.34 per share a year ago.

Drillisch AG the mobile-phone company rose 2.1% to €4.76.

Fomento de Construcciones y Contratas SA the construction and environmental services company said nine months sales fell 8.8% to €9.3 billion from €10.2 billion a year ago. Net profit for the nine months fell 32% to €201.9 million compared to net profit of €297.1 million a year ago.

Groupe Vial SA the discount carpenter plunged 22.6% to €4.03.

Iberia Lineas Aereas de Espana SA the airline operator said third quarter revenues fell 19.6% to €1.17 billion from €1.46 billion a year ago. Net loss for the quarter was €16.4 million or €0.02 per diluted share compared to net profit of €30.4 billion or €0.03 per share a year ago.

Indra Sistemas SA an information technology company said nine months revenues rose 6% to €1.88 billion from €1.77 billion a year ago. Net profit for the nine months rose 7.7% to €151.6 million or €0.94 per diluted share compared to net profit of €140.7 million or €0.88 per share a year ago.

KBC Groep NV rose 0.2% to €31.90 after the provider of banking, insurance and wealth management said third quarter net interest income rose 33.3% to €1.6 billion from €1.2 billion a year ago. Net profit for the quarter was €528 million or €1.56 per diluted share compared to net loss of €906 million or €2.65 per share a year ago.

MediGene AG fell 1.5% to €3.87 after the pharmaceuticals company said first nine months revenue increased 12% to €28.6 million from €25.5 million a year ago.

Natixis SA declined 5.2% to €4.04 after the bank said third quarter net banking income rose 1.5% to €1.35 billion from €1.33 billion a year ago. Net profit for the quarter was €268 million compared to net loss of €234 million a year ago.

Porsche Automobil Holding SE gained 0.5% to €52.71 after the maker of the 911 sports car said for the fiscal year 2008-2009 net loss of €4.4 billion.

PSP Swiss Property AG the real estate company said nine months rental income rose 4% to €200.3 million from €192.4 million a year ago. Net profit for the nine months rose 8.5% to €162.9 million or €3.90 per diluted share compared to net profit of €150.2 million or €3.54 per share a year ago.

Siemens AG the engineering company rose 0.3% to €63.97.

Technip fell 1.8% to €47.45 an oil engineering group third quarter revenues fell 11.4% to €1.71 billion from €1.93 billion a year ago. Net profit for the quarter fell 11% to €107.7 million or €1.00 per diluted share compared to net profit of €121.1 million or €1.15 per share a year ago.

Unipol Gruppo Finanziario SpA slipped 3.7% to €0.98 after the insurance company said nine months net premium income rose 31.5% to €7.14 billion from €5.43 billion a year ago. Net profit for the nine months fell 93% to €13 million compared to net profit of €179 million a year ago.

Vilmorin & Cie SA rose 2.1% to €76.40 after the seed company confirmed that it expects to report an increase in sales and margins for the fiscal year 2009-2010.

Vivendi SA increased 1.1% to €19.84 after the telecommunications services and media entertainment company said third quarter revenues fell 2.5% to €6.35 billion from €6.51 billion a year ago. Net profit for the quarter fell 78% to €600 million or €0.49 per diluted share compared to net profit of €2.76 billion or €2.35 per share a year ago.

Volkswagen AG fell 3.2% to €95.08 after the automobile manufacturer said on Friday its group deliveries in October rose 11.1% to 557,300 vehicles compared to the same period a year ago.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 2.38%, followed by losses in Commerzbank AG of 2.23%, in MAN SE of 0.85%, in E.ON AG of 0.48%, Deutsche Boerse AG of 0.35%.

Infineon Technologies AG led gainers in the DAX index with a rise of 2.25% followed by increase in Fresenius Medical Care AG & Co. KGaA of 2.13%, in ThyssenKrupp AG of 1.53%, in K + S AG of 1.36%, Deutsche Post AG of 1.09%.

CAC-40 Index Movers

Vallourec SA led the decliners in the CAC-40 index of 4.30%, followed by losses in Dexia SA of 3.08%, in Bouygues SA of 2.50%, in Total SA of 1.93%, AXA of 1.24%.

Accor SA gainers in the CAC-40 index with a rise of 2.41% followed by gainers in Electricite de Strasbourg SA.of 2.39%, in Renault SA of 2.03%, in PSA Peugeot Citroen S.A of 2.01%, in Alcatel Lucent of 1.45%.