Europe: Accor, Fresenius Rhodia Rise

Mayank Mehta
24 Feb, 2010
New York City

European markets closed higher on stronger than expected earnings from Rhodia, Fresenius and Vallourec. Industrial new orders in December increased, surprising most economists. French jobless rolls increased to 2.66 million.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher on stronger than expected earnings from Rhodia, Fresenius and Vallourec. Industrial new orders in December increased, surprising most economists. French jobless rolls increased to 2.66 million.[/R]

European markets fractionally closed higher after better than expected earnings from Rhodia SA, Fresenius SE and Vallourec SA and an increase in industrial orders in December.

Industrial new orders in the euro zone increased 0.8% in December 2009, after a decrease of 2.7% in November and in the wider area of 27 nations new orders rose 0.6% in December, after a fall of 2.4% in November.

In London FTSE 100 Index closed higher 27.83 or 0.52% to 5,342.92, in Paris CAC 40 Index increased 8.62 or 0.23% to close at 3,715.68, in Frankfurt DAX index higher 11.44 or 0.20% to close at 5,615.51. In Zurich trading SMI increased 38.86 or 0.58% to close at 6,687.95.

Greek bonds declined ahead of government bond offering in the next five weeks to pay for the maturing debt obligation of €16 billion. The worries of wider contagion also affected Spanish and Portuguese bonds.

Unions in Greece conducted its second one-day strike that closed down transportation, medical and educations institutions to resist the calls from Prime Minister George Papandreou to lower budget deficit.

The number of people looking for job in France increased 19,500 in January to 2.66 million, highest since July 2005 according to the latest information from the Labor and Finance ministries. In the year 71,000 jobs are expected to be eliminated after 373,000 employee cuts in 2009.

Gainers & Losers

Accor SA added 2.7% to €37.50 after the hotelier said 2009 sales fell 8% to €7.07 billion from €7.7 billion a year ago. Net loss for the full year was €282 million or €1.26 per diluted share compared to net profit of €575 million or €2.59 per share a year ago.

Commerzbank AG fell 2.9% to €5.48 after the company said it expected fiscal 2010 to be a difficult year and would return to profitability in fiscal 2011.

CNP Assurances increased 2.2% to €66.44 after the personal insurance provider said full year net insurance revenue fell 18% to €2.55 billion from €3.12 billion a year ago. Net profit for the full-year rose 37.5% to €1.00 billion compared to net profit of €731 million a year ago.

Entrepose Contracting SA the builder of pipelines and storage facilities increased 3.6% to €67.09.

Fresenius Medical Care AG & Co added 4.0% to €38.59 after the provider of kidney dialysis said full year sales rose 6% to $11.2 billion from $10.6 billion a year ago. Net profit for the year rose 9% to $891 million or $2.75 per ADS compared to net profit of $817.6 million or $2.75 per ADS a year ago.

Husqvarna AB the manufacturing of outdoor power products said full year sales rose 5.6% to SEK34.1 billion from SEK32.3 billion a year ago. Net profit for the year fell 30% to SEK899 million or SEK1.64 per diluted share compared to net profit of SEK1.28 billion or SEK2.81 per share a year ago.

MLP AG an independent financial services company said full year revenues fell 11% to €532.1 million from €595.2 million a year ago. Net profit for the year fell 1.6% to €24.2 million or €0.25 per diluted share compared to net profit of €24.6 million or €0.30 per share a year ago.

MTU Aero Engines Holdings AG fell 4.0% to €37.27 the jet-engine maker said full year revenues fell 4% to €2.61 billion from €2.72 billion a year ago. Net profit for the year fell 21.5% to €141 million compared to net profit of €179.7 million a year ago.

Rhodia the chemical maker climbed 5.9% to €13.88 after the chemical maker said full year sales fell 15% to €4.03 billion from €4.76 billion a year ago. Net loss for the year was €132 million or €1.01 per diluted share compared to net loss of €105 million or €0.72 per share a year ago.

Vallourec SA increased 2.8% to €137.25.after the producer of seamless steel tube said full-year sales fell 31% to €4.46 billion from €6.44 billion a year ago. Net profit for the full-year fell 46.5% to €517.7 million compared to net profit of €967.2 million a year ago.

DAX Index Movers

Commerzbank AG led the decliners in the DAX index of 3.56%, followed by losses in Infineon Technologies AG of 1.71%, in BASF SE of 1.07%, in Linde AG of 1.01%, and in ThyssenKrupp AG of 0.90%.

Fresenius SE led gainers in the DAX index with a rise of 4.33%, followed by increase in Fresenius Medical Care AG & Co. KGaA of 4.03%, in Volkswagen AG of 1.63%, in Deutsche Boerse AG of 1.35%, and in SAP AG of 1.33%.

CAC-40 Index Movers

Lafarge S.A. led the decliners in the CAC-40 index of 2.235%, followed by losses in EADS NV of 2.06%, in Bouygues SA of 1.30%, in PSA Peugeot Citroen S.A. of 1.27% and in PPR SA of 1.03%.

Vallourec SA gainers in the CAC-40 index with a rise of 4.16%, followed by increase in STMicroelectronics N.V. of 2.69%, in Dexia SA of 2.36%, in Cap Gemini SA. of 1.81% and in Accor SA of 1.74%.