Renewable Energy Stocks Rally in Europe

Mayank Mehta
03 Mar, 2010
New York City

European markets closed higher on a rally in resource stocks. Greece proposed additional budget cuts as expected. Alternative energy producers gained after German ministers proposed lower than expected cut in subsidies. Employee placement company Adecco swung to a profit.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher on a rally in resource stocks. Greece proposed additional budget cuts as expected. Alternative energy producers gained after German ministers proposed lower than expected cut in subsidies. Employee placement company Adecco swung to a profit.[/R]

European markets traded higher as commodities gained and resource stocks rallied. Greece announced additional cuts to meet demands from the EU regulators.

In London FTSE 100 Index closed higher 49.15 or 0.90% to 5,533.21, in Paris CAC 40 Index increased 30.60 or 0.80% to close at 3,842.52, in Frankfurt DAX index higher 41.32 or 0.72% to close at 5,817.88. In Zurich trading SMI decreased 6.88 or 0.10% to close at 6,813.16.

Greece announced additional budget cuts of 4.8 billion euros to meet the demand of EU regulators ahead of Greek Prime Minister meeting with Germany Chancellor Angela Merkel on March 5 and French President Nicholas Sarkozy on March 7.

Alternative energy producers gained after German ministers decided to lower the subsidy for the energy producers. New solar panels systems will incur 16% lower subsidy and new solar parks subsidies will decline 15%.

The subsidies were expected to fall as much as 25%.

Gainers & Losers

Adidas AG declined 4.8% to €36.19 after the global producer of sportswear and sports equipment said fourth quarter revenues fell 4.5% to €2.46 billion from €2.57 billion a year ago. Net profit for the quarter fell 64% to €19 million or €0.09 per diluted share compared to net profit of €54 million or €0.27 per share a year ago.

Bouygues SA rose 1.5% to €36.38 after the construction, television and Telecommunications Company said 2009 revenues fell 3.4% to €31.4 billion from €32.5 billion a year ago. Net profit for the 2009 fell 12% to €1.32 billion compared to net profit of €1.50 billion a year ago.

ERG Renew SpA closed unchanged at €0.83 after the renewable energy company said 2009 revenues rose 16% to €50.5 million from €43.4 million a year ago. Net loss for the 2009 was €28.0 million compared to net loss of €24.4 million a year ago.

Fraport AG fell 0.8% to €38.18 after the owner and operator of the international airport said 2009 revenues fell 6% to €1.97 billion from €2.10 billion a year ago. Net profit for the 2009 fell 21% to €150.0 million or €2.05 per diluted share compared to net profit of €189.7 million or €1.63 per share a year ago.

Pargesa Holding SA an investment firm said 2009 net profit was CHF791.7 million or CHF9.35 per diluted share compared to net loss of CHF520.8 million or CHF6.15 per share a year ago.

QSC AG fell 1.3% to €1.70 after the telecommunications provider said 2009 revenues rose 1.7% to €420.5 million from €413.3 million a year ago. Net profit for the 2009 rose 587.5% to €5.5 million compared to net profit of €0.8 million a year ago.

SCOR SE added 1.8% to €18.58 after the global reinsurer said 2009 gross written premiums rose 9.8% to €6.4 bllion from €5.8 billion a year ago. Net profit for the 2009 rose 17.5% to €370 million compared to net profit of €315 million a year ago.

Solarworld AG soared 13% to €10.66 ad Renewable Energy Corp ASA increased 7.3% to 22.90 kroner.

Symrise AG advanced 2.6% to €16.10 after the flavor and fragrance manufacturer said 2009 revenues rose 3.2% to €1.36 billion from €1.32 billion a year ago. Net profit for the 2009 fell 6.7% to €84.3 million or €0.71 per diluted share compared to net profit of €90.4 million or €0.76 per share a year ago.

Teleperformance SA fell 1.2% to €24.10 after the provider of outsourced CRM and contact center services said 2009 revenues rose 4% to €1.85 billion from €1.78 billion a year ago. Net profit for the 2009 fell 24% to €88.2 million or €1.56 per diluted share compared to net profit of €116.4 million or €2.09 per share a year ago.

Technicolor SA increased 4.7% to €1.03 after the company was upgraded to “add” from “reduce” at Oddo Securities.

Volkswagen AG rose 0.4% to €65.92 after the company plans to expand its fleet of electric drive vehicles: The use of hybrid technology in production vehicles is already being demonstrated in the Touareg Hybrid at this year’s Geneva Motor Show.

DAX Index Movers

Adidas AG led the decliners in the DAX index of 4.60%, followed by Beiersdorf AG of 2.35%, in Henkel AG of 1.42%, in Fresenius Medical Care AG & Co. KGaA of 0.65%, and in Fresenius SE of 0.46%.

Bayer AG led gainers in the DAX index with a rise of 2.62%, followed by increase in Volkswagen AG of 2.44%, in Salzgitter AG of 2.33%, in ThyssenKrupp AG of 2.11%, and in Deutsche Bank AG of 2.05%.

CAC-40 Index Movers

L''Oreal SA led the decliners in the CAC-40 index of 1.26%.followed by Essilor International of 0.95%, in Danone SA of 0.24%, in Air Liquide SA of 0.08%.

Dexia SA gainers in the CAC-40 index with a rise of 4.97%.followed by increase in Bouygues SA of 4.79%, in Lafarge S.A. of 4.15%, in ArcelorMittal of 2.99% and in PSA Peugeot Citroen S.A. of 2.48%.