Europe Earnings: SwissRe, Daimler, SocGen

Mayank Mehta
18 Feb, 2010
New York City

ABB Ltd increases dividend 6%. Societe Generale SA shares down 3.6% after fourth quarter asset write down hurt the bank. Daimler AG reported a loss and said will not pay annual dividend. SwissRe lifted it dividend to 1 Swiss franc.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – ABB Ltd increases dividend 6%. Societe Generale SA shares down 3.6% after fourth quarter asset write down hurt the bank. Daimler AG reported a loss and said will not pay annual dividend. SwissRe lifted it dividend to 1 Swiss franc.[/R]

European markets traded higher but trimmed their gains after the jobless claims increased in the U.S.

Societe Generale SA dropped 7% after it cut its dividend to 25 euro cents from €1.20 and the bank booked €563 million of losses in the corporate and investment banking.

In London FTSE 100 Index closed higher 48.45 or 0.92% to 5,325.09, in Paris CAC 40 Index increased 22.62 or 0.61% to close at 3,747.83, in Frankfurt DAX index higher 32.07 or 0.57% to close at 5,680.41. In Zurich trading SMI increased 69.69 or 1.06% to close at 6,637.29.

ABB gained after net income doubled and Swiss Re lifted it dividend to 1 Swiss franc. Daimler declined after it reported full year loss and said it will not pay dividend for the year.

Gainers & Losers

Air Berlin Plc increased 0.8% to €4.08 and the discount carrier will increase its stake in NIKI Luftfahrt GmbH to 49.9% from 24%.

The airline will pay €21 million to founder Niki Lauda, the former Formal One race champion and also loan €40.5 million to a foundation controlled by him for three years. The loan may be repaid in the period or exchanged for 50.1% stake in the company.

NIKI estimates 2010 revenues to increase 41% to €380 million and transport 3.5 million passengers.

ABB Ltd surged 7.6% to CHF21.28 after the power and automation technologies said full year revenues fell 9% to $31.8 billion from $34.9 billion a year ago. Net profit for the full-year fell 6.5% to $2.9 billion or $1.27 per diluted share compared to net profit of $3.1 billion or $1.36 per share a year ago.

Akzo Nobel N.V decreased 9.1% to €38.76 after the global paints and coatings maker said full year revenues fell 10% to €13.9 billion from €15.4 billion a year ago. Net profit for the year was €285 million or €1.21 per diluted share compared to net loss of €1.09 billion or €4.36 per share a year ago.

AXA SA rose 6.2% to €21.00 an international financial services group said full-year revenues fell 3% to €90.1 billion from €91.2 billion a year ago. Net profit for the full-year rose 300% to €3.6 billion or €1.51 per diluted share compared to net profit of €0.9 billion or €0.43 per share a year ago.

BNP Paribas SA the bank rose 0.5% to €51.42 and Commerzbank AG the bank fell 1.6% to €5.63.

Conergy AG the solar company surged 16.6% to €0.87.

Daimler AG fell 5.5% to €31.23 after the car maker said full-year revenues fell 20% to €78.9 billion from €98.5 billion a year ago. Net loss for the full-year was €2.64 billion or €2.63 per diluted share compared to net profit of €1.41 billion or €1.41 per share a year ago.

The automaker said it plans to pay no annual dividend.

Deutsche Postbank AG fell 2.4% to €22.05 after the retail lender part-owned by Deutsche Bank AG reported fourth quarter loss after credit write-downs.

Henkel AG & Co the detergent and other consumer products maker rose 0.9% to €36.37.

Pernod Ricard SA fell 0.3% to €57.08 after the producer and distributor of spirits and wines said first-half sales fell 10% to €3.79 billion from €4.21 billion a year ago. Net profit for the first-half fell 2% to €604 million compared to net profit of €615 million a year ago.

PPR SA rose 3.4% to €87.61 after the maker of luxury goods said full-year revenues fell 4% to €16.5 billion from €17.2 billion a year ago. Net profit for the full-year rose 7% to €984.6 million or €7.79 per diluted share compared to net profit of €921.1 million or €7.31 per share a year ago.

Schneider Electric SA added 2.6% to €78.80 after the maker of circuit breakers said full-year revenues fell 14% to €15.8 billion from €18.3 billion a year ago. Net profit for the year fell 49% to €852 million or €3.43 per diluted share compared to net profit of €1.68 billion or €7.00 per share a year ago.

Societe Generale SA declined 4.4% to €40.15 after the bank said fourth quarter net banking income fell 0.9% to €21.7 billion from €21.9 billion a year ago. Net profit for the quarter fell 66% to €678 million or compared to net profit of €2.01 billion a year ago.

Sonova Holding AG increased 3.4% to CHF 132.6 after the hearing-aid lifted its outlook for sales and profitability.

Swiss Re the global reinsurer said full-year revenues rose 33.6% to CHF33.4 billion from CHF25 billion a year ago. Net profit for the full-year was CHF506 million or CHF1.48 per diluted share compared to net loss of CHF864 million or CHF2.61 per share a year ago.

TomTom NV increased 7.8% to €5.86 after the navigation device maker said full year revenues fell 12% to €1.48 billion from €1.67 billion a year ago. Net profit for the year was €87 million or €0.47 per diluted share compared to net loss of €873 million or €5.89 per share a year ago.

Volkswagen AG the automobile manufacturer rose 0.03% to €64.69.

DAX Index Movers

Daimler led the decliners in the DAX index of 5.00%, followed by losses in BMW AG of 1.11%, in METRO AG of 0.10%.

K+S AG led gainers in the DAX index with a rise of 3.23%, followed by increase in Fresenius SE of 2.50%, in Deutsche Boerse AG of 2.44%, in Beiersdorf AG of 2.37%, and in Merck KGaA of 1.81%.

CAC-40 Index Movers

Societe Generale led the decliners in the CAC-40 index of 7.20%, followed by losses in Technip of 3.01%, in Credit Agricole SA of 2.27%, in Electricite de Strasbourg SA of 1.73%, in Michelin SCA of 1.15%.

Cap Gemini SA gainers in the CAC-40 index with a rise of 6.19%, followed by gainers in Schneider Electric SA of 3.85%, in ArcelorMittal of 2.24%, in BNP Paribas SA of 2.15% and in Renault SA of 1.80%.