Tuesday 29 November, 1:00 PM GMT (Thomson Financial): European markets
have retraced some of their early losses and are now trading slightly
higher, led by the insurance and retail sectors. The latter is being led
by Ahold on better-than-expected underlying results and plans to
restructure its U.S. Foodservice operations, the source of past financial
woes.
Elsewhere, Barclays expects its full year earnings per share to be broadly
in line with market expectations, while Compass Group has announced a drop
in full year underlying pre-tax profits to 581 million pounds from 645
million pounds last year. Elsewhere, Brambles has announced a number of
measures designed to streamline the group via divestments and share
buy-backs, while DP World, Dubai's state-owned ports operator, has
announced a 3.326 billion pounds bid for Peninsular & Oriental Steam
Navigation
Amongst healthcare plays, Lundbeck remains sharply lower on news that the
ongoing review of its bifeprunox clinical data will delay registration
until 2008, while Solvay is under pressure after announcing it has
suspended U.S. regulatory activities for its cilansetron drug.
London's FTSE-100 Index is effectively flat, having lost just 0.10 points
to 5477.30, while Paris's CAC-40 Index has risen by 7.17 points or 0.16%
to 4582.48. Frankfurt's DAX Index is higher by 12.46 points or 0.24% to
5189.05 and Milan's S&P MIB Index is unchanged, having added only 1 point
to 34,257. The pan-European blue chip Dow Jones Stoxx 50 Index is slightly
higher, by 1.32 points or 0.04% to 3281.79.
* Dutch food group Royal Ahold has posted a third quarter net loss of 239
million euros compared to a net loss of 134 million euros in the same
quarter last year, impacted by Monday's announcement of a class action
settlement. Excluding the settlement effect, net income would have reached
346 million euros as the effects of 2004 impairment charges and one-off
items to reduce net debt and improve borrowing items paid off. At the
operating level, the group has made a loss of 638 million euros compared
to a net operating profit of 99 million euros last year, on a 0.7% rise in
net sales to 10.2 billion euros. Meanwhile, Ahold has announced plans to
restructure its U.S. Foodservice operations, the source of its past
financial woes by splitting it up into two separate companies.
* In its latest trading update, Barclays says it expects full year
earnings per share to be broadly in-line with market expectations. It said
its banking unit continued to perform well, adding that Barclays Capital
had delivered very strong profit growth, driven by higher client related
activity and increasing contributions from credit products, commodities
and the U.S. businesses. Within Barclaycard, it said the rate of growth in
impairment charges for the nine months to end September had been
consistent with first half trends but combined with continued investment
in the business, this more than offset the growth in income.
* U.K. catering group Compass has announced a drop in full year underlying
pre-tax profits to 581 million pounds compared to 645 million pounds last
year. Underlying operating profit has also declined, to 711 million pounds
from 775 million pounds in the prior year, on turnover of 12.704 billion
pounds compared to 11.772 billion pounds last year. However, its share
price is trading higher with its results in-line with market forecasts.
* Shares in the Belgian cable television operator Telenet are under
pressure after its third quarter net loss widened to 6.1 million euros
compared a net loss of 1.8 million euros last year as rising foreign
currency costs eroded rising sales and the growing demand for digital
television. Earnings before interest, tax, depreciation and amortization
(EBITDA) have reached 80.7 million euros, up 8% year-on-year, with sales
growing to 185.4 million euros from 170.7 million euros in the prior year.
* Anglo-Australian logistics company Brambles has announced a number of
measures designed to streamline the group and to unify its dual-listed
companies structure by the creation of a new single holding company
focused on its premium growth businesses. This included the divestment of
its Cleanaway waste management unit as well as its industrial services and
regional businesses and the release of at least 1.2 billion pounds of
surplus capital, which will be used to acquire shares via share buy-backs.
* DP World, Dubai's state-owned ports operator, has announced a 443 pence
a share bid for Peninsular & Oriental Steam Navigation (P&O), valuing the
existing issued deferred stock of the company at 3.326 billion pounds.
This offer reflects a premium of 46% to the closing price of 303.5 pence
for each unit of deferred stock on 27 October 2005 -the last business day
prior to recent speculation regarding a possible offer for the company.
* Lundbeck remains sharply lower on news that the ongoing review of its
bifeprunox clinical data has lead to a delayed submission of registration
dossiers in the EU until 2008, depending on the completion of additional
phase III clinical work.
* Solvay Pharmaceuticals announced it has suspended regulatory activities
for cilansetron with the U.S. Food and Drug Administration. Solvay said
that given the amount of clinical work requested and in the framework of
the estimated potential market there, it preferred to give priority to the
development of other compounds in its research and development pipeline.
* Danish telecommunications operator TDC agreed to sell its Contactel unit
to GTS for an undisclosed amount. GTS is a large provider of integrated
communications solutions to the business sectors in Poland, the Czech
Republic, Hungary, Romania, and Slovakia.
Simon.Tse@Thomson.com; Thomson Financial
This is Thomson Financial Corporate Services Europe Market Commentary.
The information herein is believed to be true and accurate. If you have
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SOURCE Thomson Financial Corporate Group
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