European Shares Lose

Elena
08 Mar, 2006
Frankfurt

European stocks traded lower at mid-day with investors eyeing strong earnings reports. The German DAX 30 slipped 1.3% and London FTSE 100 fell 1.1% on weak mining stocks. Asian-Pacific benchmarx extended losses Wednesday as the Bank of Japan started re-examining the monetary policy. The leading decliner was Shanghai Composite, down 1.6%. The Nikkei slipped 0.8%.

8:30 AM A Couple of Companies Reverse to Profit
Powell Industries, ((POWL)), electrical energy equipment maker, reported it reversed to a Q1 profit of 10 cents a share on 76% revenue growth. The company is set to report Q2 earnings between 8 cents and 12 cents a share and 2006 earnings between 45 cents and 55 cents a share, incorporating stock option expenses. Revenue is anticipated to be between $300 million and $325 million.

Dynegy Inc, ((DYN)), power generator, reported Q4 net income of 75 cents a share, swinging from a loss of 46 cents a share year-ago. Q4 profit reflected income from discontinued operations of $1.74 a share. The company''s loss from continuing operations increased to 98 cents a share, from 60 cents a share. Dynegy topped analysts’ forecasts for a quarterly loss of 12 cents a share.

Six Flags, ((PKS)), theme park operator, reported a Q4 loss of $1.55 a share, down from a loss of $1.24 a share year-ago despite revenue growth. On a continuing operations basis, the company lost $1.31 a share, down from a year-ago loss of $1.20 a share. The company missed analysts’ estimate for a loss 73 cents a share. The company added attendance slipped 1% in Q4 to 3.6 million, and operating costs and expenses grew 12%.

Gander Mountain Co, ((GMTN)), outdoor products retailer, reported Q4 earnings of $1.45 a share, up from a profit of $1.21 a share a year-earlier on sales growth, topping analysts’ estimate for a profit of 87 cents.

European stocks were weak at mid-day dealings, rebounding from earlier gains with investors eyeing strong earnings news. Mixed close of U.S. markets overnight also contributed to the general weakness. The German DAX 30 led losers with a decline of 1.3%, followed by the French CAC 40, down 1.1%, and London FTSE 100 falling 1.1% on lower mining stocks.

8:00AM Asian markets extended recent weakness ahead of BOJ decision on monetary policy.
Asian-Pacific benchmarks closed Wednesday session lower to extend recent weakness. Stocks declines on cautiousness as the Bank of Japan started re-examining the monetary policy with the Nikkei losing 0.8%. Across the region, Shanghai Composite was the biggest loser, falling 1.6%, followed by South Korea’s Kospi, down 1.1%, and Taiwan Weighted index, down 0.4%. The dollar bought 117.54 yen, down 37 yen.