European Stocks Lower; VW Up, Lagardere Down

Mayank Mehta
11 Mar, 2010
New York City

European markets closed lower and the Swiss National Bank left its key lending rate unchanged at 0.25%. Volkswagen said unit sales in the first two months in a year surged 27% from a year ago and is seeking to raise

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower and the Swiss National Bank left its key lending rate unchanged at 0.25%. Volkswagen said unit sales in the first two months in a year surged 27% from a year ago and is seeking to raise €5 billion in April.[/R]

European markets declined as commodities eased. Deutsche Lufthansa reported a narrower loss in 2009 and Hannover Re swung to a net profit in the year. JCDecaux SA and Lagardere SCA reported sharply lower 2009 earnings.

In London FTSE 100 Index closed lower 23.31 or 0.41% to 5,617.26, in Paris CAC 40 Index decreased 14.60 or 0.37% to close at 3,928.95, in Frankfurt DAX index lower 8.09 or 0.14% to close at 5,928.63. In Zurich trading SMI decreased 21.86 or 0.32% to close at 6,851.73.

EU27 external current account recorded a deficit of 27 billion euro in the fourth quarter of 2009, compared with a deficit of 59.4 billion in the quarter a year ago and a deficit of 27.7 billion in the third quarter of 2009.

The Swiss National Bank left its key lending rate at 0.25% in its quarterly assessment today. The rate decision was the first by the recently appointed chief Philipp Hilderbrand and Swiss franc as appreciated 3.5% against the dollar. The Swiss central bank has been withdrawing emergency measures following other central banks.

Volkswagen AG is seeking shareholder approval next month to raise as much as €5 billion through the sale of convertible bonds. The automaker’s chief executive Martin Winterkornsaid said total sales surged 27% in the first two months.

Gainers & Losers

Boiron SA added 2.9% to €32.30 after the pharmaceutical company said 2009 revenues rose 12.7% to €526.1 million from €466.7 million a year ago. Net profit for the year rose 53.3% to €59.8 million compared to net profit of €39 million a year ago.

Centrotherm Photovoltaics AG rose 0.1% to €32.55 after the maker of equipment to produce solar silicon and modules was upgraded “buy” in new coverage at Jefferies Group Inc.

Cfao SA declined 4.3% to €28.64 after the distributor of industrial products and services in Africa said 2009 revenues fell 10% to €2.58 billion from €2.87 billion a year ago. Net profit for the year fell 30% to €90.3 million or €1.47 per diluted share compared to net profit of €128.6 million or €2.09 per share a year ago.

Deutsche Lufthansa AG fell 0.4% to €11.89 an airline group said 2009 revenues fell 10% to €22.3 billion from €24.8 billion a year ago. Net loss for the year was €112 million or €0.24 per diluted share compared to net profit of €542.0 million or €1.18 per share a year ago.

GEA Group AG soared 7.2% to €16.30 after the milk machinery maker said 2009 revenues fell 15% to €4.41 billion from €5.18 billion a year ago. Net profit for the year rose 60% to €161.7 million or €0.87 per diluted share compared to net profit of €101 million or €0.54 per share a year ago.

Haulotte Group SA dropped 6.6% to €6.22 after the manufacturer of lifting and earth moving equipment said 2009 revenues fell 55% to €202.0 million from €450.8 million a year ago. Net loss for the year was €55.7 million compared to net profit of €31.9 million a year ago.

Hannover Rueckversicherung AG rose 0.6% to €33.67 after the global reinsurance company said 2009 gross written premium rose 26.5% to €10.3 billion from €8.1 billion a year ago. Net profit for the year was €731.2 million or € 6.06 per diluted share compared to net loss of €127 million or €1.05 per share a year ago.

JCDecaux SA decreased 1.2% to €19.23 an outdoor advertising company said 2009 revenues fell 12% to €1.9 billion from €2.17 billion a year ago. Net profit for the year fell 77% to €24.5 million or €0.11 per diluted share compared to net profit of €108.1 million or €0.49 per share a year ago.

K+S AG fell 2.8% to €45.65 after the suppliers of specialty and standard fertilizers said 2009 revenues fell 25.5% to €3.57 billion from €4.79 billion a year ago. Net profit for the year fell 89% to €96.4 million compared to net profit of €870.9 million a year ago.

Lagardere SCA fell 7.3% to €26.37 after the media group said 2009 revenues fell 4% to €7.9 billion from €8.2 billion a year ago. Net profit for the year fell 77% to €137 million compared to net profit of €593 million a year ago.

Maire Tecnimont SpA dropped 2.7% to €2.60 an engineering company said 2009 revenues fell 12% to €2.17 billion from €2.46 billion a year ago. Net profit for the year fell 34% to €77 million or €0.24 per diluted share compared to net profit of €117.3 million or €0.37 per share a year ago.

Neurones SA increased 3.8% to €6.98 after the provider of information technology services said 2009 revenues rose 14.3% to €216.4 million from €189.3 million a year ago. Net profit for the 2009 fell 5.8% to €11.3 million compared to net profit of €12.0 million a year ago.

Rubis SCA rose 0.8% to €60.40 an energy storage and distribution services company said 2009 revenues 20% to €951.9 million from €1.19 billion a year ago. Net profit for the 2009 rose 10.5% to €47.2 million compared to net profit of €42.7 million a year ago.

Sixt AG slipped 4.1% to €23.82 after the rent a car company said 2009 revenues fell 9.6% to €1.60 billion from €1.77 billion a year ago. Net profit for the year fell 83% to €10.4 million compared to net profit of €61.4 million a year ago.

Tognum AG added 1.5% to €14.06 after the manufacturer of diesel and gas engines maker said 2009 revenues fell 19% to €2.53 billion from €3.13 billion a year ago. Net profit for the year fell 50.6% to €102.5 million or €0.78 per diluted share compared to net profit of €207.6 million or €1.58 per share a year ago.

DAX Index Movers

K+S AG led the decliners in the DAX index of 2.72%, followed by Deutsche Post AG of 1.08%, in Bayer AG of 0.86%, in Muenchener Rue AG of 0.85%, and in SAP AG of 0.84%.

Volkswagen AG led gainers in the DAX index with a rise of 7.90%, followed by increase in Adidas AG of 2.11%, in Metro AG of 1.48%, in BMW AG of 1.27%, and in BASF SE of 1.26%.

CAC-40 Index Movers

Lagardere SCA led the decliners in the CAC-40 index of 7.34%, followed by EADS NV of 2.78%, in Alstom SA of 2.73%, in Societe Generale SA of 1.79% and in ArcelorMittal of 1.65%.

PPR SA gainers in the CAC-40 index with a rise of 3.49%.followed by increase in Carrefour SA of 1.47%, in Accor SA of 1.19%, in GDF Suez SA of 0.82% and in Veolia Environnement of 0.78%.