French, Italian Output Increase; Fortis, VW Gain

Mayank Mehta
10 Mar, 2010
New York City

European markets closed higher on improved global economic expectations, merger activities and an increase in production in France and Italy. Munich Re fourth quarter profit jumps. Fortis gains after it said it will resume dividend payment.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher on improved global economic expectations, merger activities and an increase in production in France and Italy. Munich Re fourth quarter profit jumps. Fortis gains after it said it will resume dividend payment.[/R]

Industrial production in France and Italy increased but declined in UK in January according to the latest data released by agencies.

In London FTSE 100 Index closed higher 38.27 or 0.68% to 5,640.57, in Paris CAC 40 Index increased 33.54 or 0.86% to close at 3,943.55, in Frankfurt DAX index higher 50.83 or 0.86% to close at 5,936.72. In Zurich trading SMI increased 5.27 or 0.08% to close at 6,873.59.

Total output at French factories and utilities increased 1.6% from the revised decline of 0.2% in December and production in Italy increased 2.6% after a revised fall of 0.2% in December.

The volatile orders of transportation equipment including boats, airplanes and trains surged 14.5% and auto and related production increased 3.1%. Italian transport vehicles production increased 7.4% in the month.

The UK overall production output in January fell by 1.5% from a year ago. Output in mining & quarrying declined by 8.8%, energy supply industry fell 5.2%. Manufacturing output increased 0.4% in January from a year ago month.

Gainers & Losers

Compagnie de Saint-Gobain SA dropped 0.5% to €35.98 after the supplier of building materials was downgraded to “sell” from “hold” at ING.

E.ON age rose 1.1% to €27.19 after the power and gas generator and utility said 2009 revenues fell 6% to €81.8 billion from €86.8 billion a year ago. Net profit for the year rose 546% to €8.4 billion or €4.41 per diluted share compared to net profit of €1.3 billion or €0.69 per share a year ago.

Fortis gained 3.1% to €2.80 after the Belgium based life insurer said full year net income increased to €1.19 billion and will resume dividend payment as early as next quarter.

GL Events SA increased 4.1% to €17.29 after the provider of event-related services said 2009 sales fell 4% to €581.4 million from €605.7 million a year ago. Net profit for the year fell 12% to €25.2 million compared to net profit of €28.7 million a year ago.

IVG Immobilien AG fell 0.1% to €5.69 after the real estate company said 2009 revenues rose 38% to €838.8 million from €608.6 million a year ago. Net loss for the year was €158.0 million compared to net loss of €451.7 million a year ago.

Jenoptik AG fell 3.9% to €4.49 after the company announced that it has received an order in the sum of over €12 million for traffic surveillance systems and units outside Europe.

Lafarge S.A slipped 0.6% to €52.18 after the cement maker was downgraded to “sell” from “hold” at ING Groep NV.

Lottomatica Group SpA increased 2.9% to €14.45 after the company said that a court based in Rome accepted its appeal in a Scratch & Win case. The news was first reported on Bloomberg.

Munich Re closed unchanged at €116.18 after the reinsurance company said 2009 net earned premiums rose 10.6% to €39.5 billion from €35.7 billion a year ago. Net profit for the year rose 56% to €2.5 billion compared to net profit of €1.6 billion a year ago.

Pirelli & C Real Estate SpA added 0.4% to €0.46 an alternative asset management company said 2009 revenues fell 25.6% to €271.7 million from €365.1 million a year ago. Net loss for the year was €104.3 million compared to net loss of €195.0 million a year ago.

Phoenix Solar AG gained 5.0% to €30.03 after the solar-energy developer was upgraded to “outperform” from “underperform” at Cheuvreux.

PSB Industries SA added 0.2% to €17.70 after the maker of perfume packaging and specialty chemicals said 2009 sales fell 11% to €182.7 million from €205 million a year ago. Net profit for the year fell 34% to €4.55 million compared to net profit of €6.93 million a year ago.

Vittoria Assicurazioni SpA rose 4.2% to €3.77 after the insurer said 2009 revenues rose 21% to €692.6 million from €573.6 million a year ago. Net profit for the year fell 16% to €20.9 million or €0.25 per diluted share compared to net profit of €20.2 million or €0.30 per share a year ago.

Vicat SA dropped 1.0% to €56.40 after the manufacturer of cement said 2009 revenues fell 8% to €1.90 billion from €2.06 billion a year ago. Net profit for the year fell 22% to €191.4 million or €4.26 per diluted share compared to net profit of €245.3 million or €5.46 per share a year ago.

Volkswagen AG rose 0.01% to €69.86 an automobile manufacturer said 2009 revenues fell 13% to €29.8 billion. Net profit for the year fell 39% to €1.35 billion compared to net profit of €2.21 billion a year ago.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 0.86%, followed by Deutsche Post AG of 0.54%, in Fresenius Medical Care AG & Co. KGaA of 0.41%, in RWE AG of 0.32%, and in Deutsche Telekom AG of 0.14%.

BASF SE led gainers in the DAX index with a rise of 1.76%, followed by increase in ThyssenKrupp AG of 1.72%, in Salzgitter AG of 1.56%, in Metro AG of 1.50%, and in Deutsche Boerse AG of 1.29%.

CAC-40 Index Movers

EADS NV led the decliners in the CAC-40 index of 1.04%, followed by Accor SA of 0.97%, in Unibail-Rodamco SA of 0.45%, in PSA Peugeot Citroen S.A. of 0.32% and in Compagnie de Saint-Gobain SA of 0.29%.

Credit Agricole SA gainers in the CAC-40 index with a rise of 3.89%.followed by increase in Michelin SCA of 3.38%, in Dexia SA of 3.06%, in Schneider Electric SA of 2.90% and in Societe Generale SA of 2.65%.