European Markets Fall on EADS Loss

123jump.com Staff
09 Mar, 2010
New York City

European markets closed unchanged. EU regulators raise more questions on Greece tax revenues estimate. Fitch threatened to lower Portugal credit rating and said government plans to cut deficit are not sufficient. Groupe Eurotunnel SA profit plunges on tunnel fire and winter breakdowns.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed unchanged. EU regulators raise more questions on Greece tax revenues estimate. Fitch threatened to lower Portugal credit rating and said government plans to cut deficit are not sufficient. Groupe Eurotunnel SA profit plunges on tunnel fire and winter breakdowns. EADS NV cancels fiscal 2009 dividend and wider loss.[/R]

European markets closed nearly unchanged as Greek Prime Minister make rounds to world leaders, defense company EADS report a wider than expected loss, EU regulators question Greece’s tax revenues estimates and the rating agency may cut Portugal debt rating.

In London FTSE 100 Index closed lower 4.42 or 0.08% to 5,602.30, in Paris CAC 40 Index increased 6.47 or 0.17% to close at 3,910.01, in Frankfurt DAX index higher 9.98 or 0.17% to close at 5,885.89. In Zurich trading SMI increased 17.12 or 0.25% to close at 6,868.32.

Fitch sounded a debt alarm for the UK government and said that the plan to cut the deficit to 4.4% by 2015 may not be sufficient. The rating agency also said it may cut Portugal’s credit rating and the recent cuts announced by the government are not enough.

Greece Prime Minister is scheduled to meet U.S. President Barack Obama as he rallies world leaders for a support of his debt reduction plan.

Gainers & Losers

Aufeminin.com SA dropped 3.5% to €14.25 after the Internet media company said 2009 revenues rose 16.6% to €24.7 million from €28.8 million a year ago. Net profit for the year fell 12% to €5.65 million compared to net profit of €6.44 million a year ago.

Banca Generali SpA decreased 1.3% to €7.89 after the banking group said 2009 net interest income fell 19.4% to €49.3 million from €61.2 million a year ago. Net profit for the year rose 700% to €63.2 million compared to net profit of €7.9 million a year ago.

Banca IFIS SpA dropped 0.6% to €6.70 said 2009 net banking income rose 19.5% to €80.8 million from €67.6 million a year ago. Net profit for the year fell 24.6% to €17.2 million compared to net profit of €22.8 million a year ago.

Deutsche Post AG fell 1.1% to €12.66 after the global logistics provider said 2009 sales fell 15% to €46.2 billion from €54.5 billion a year ago. Net profit for the year was €644 million or €0.53 per diluted share compared to net loss of €1.7 billion or €1.40 per share a year ago.

DIC Asset AG rose 0.9% to €8.28 after the real estate company said 2009 sales fell 17% to €171.3 million from €207.1 million a year ago. Net profit for the year fell 36% to €16.1 million or €0.52 per diluted share compared to net profit of €25.2 million or €0.80 per share a year ago.

EADS NV dropped 5.0% to €15.06 after the aerospace and defense firm said 2009 sales fell 1% to €42.8 billion from €43.3 billion a year ago. Net loss for the year was €763 million or €0.94 per diluted share compared to net profit of €1.57 billion or €1.95 per share a year ago.

Groupe Eurotunnel SA dropped 4.4% to €7.35 after the tunnel rail services operator said 2009 sales fell 14% to €640 million from €747.8 million a year ago. Net profit for the year fell 96% to €1.56 million or €0.01 per diluted share compared to net profit of €43.6 million or €0.34 per share a year ago.

Kloeckner & Co SE dropped 2.6% to €18.48 after the metal distribution company said 2009 sales fell 42.6% to €3.9 billion from €6.8 billion a year ago. Net loss for the year was €186 million or €3.61 per diluted share compared to net profit of €384 million or €8.11 per share a year ago.

LVMH Moet Hennessy Louis Vuitton SA dropped 1.3% to €84.76 after the luxury-goods manufacturer was downgraded to “market perform” from “outperform” at Sanford C. Bernstein.

Phoenix Solar AG gained 5.4% to €29.00 after the provider of photovoltaic systems said 2009 revenues rose 17.5% to €473.0 million from €402.5 million a year ago. Net profit for the year fell 63.7% to €8.6 million or €1.28 per diluted share compared to net profit of €23.7 million or €3.63 per share a year ago.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 1.35%, followed by Diamler AG of 0.85%, in Muenchener Rue AG of 0.72%, in K+S AG of 0.50%, and in Henkel AG of 0.43%.

Deutsche Post AG led gainers in the DAX index with a rise of 2.18%, followed by increase in Bayer AG of 1.18%, in RWE AG of 1.03%, in MAN SE of 0.98%, and in Deutsche Lufthansa AG of 0.94%.

CAC-40 Index Movers

EADS NV led the decliners in the CAC-40 index of 2.80%, followed by Societe Generale SA of 1.49%, in Credit Agricole SA of 1.41%, in Veolia Environnement of 1.20% and in Dexia SA of 0.93%.

Pernod Ricard SA gainers in the CAC-40 index with a rise of 1.55%.followed by increase in GDF Suez SA of 1.53%, in Electricité de France of 1.13%, in AXA of 0.87% and in Vivendi SA of 0.86%.