Tuesday 29 November, 5:00 PM GMT (Thomson Financial): European markets
reversed course from earlier intra-day losses to end the trading session
slightly higher, briefly supported by a positive opening run on Wall
Street and a jump in the latest U.S. consumer confidence index to 98.9 in
November from 85.2 last month.
Amongst the key corporate stories, Ahold jumped after posting
better-than-expected underlying results and on plans to restructure its
U.S. Foodservice operations. Elsewhere, Barclays expects its full year
earnings per share to be broadly in line with market expectations, while
Compass Group announced a drop in full year underlying pre-tax profits to
581 million pounds from 645 million pounds last year. Meanwhile, Brambles
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 announced a 3.326 billion pounds bid for Peninsular & Oriental
Steam Navigation.
Elswwhere, TDC agreed to sell its Contactel unit to GTS for an undisclosed
amount, while Michelin said it would raise prices of car and light truck
replacement tyres sold in North America by up to 8%. Amongst healthcare
plays, Lundbeck ended sharply lower on news that the ongoing review of its
bifeprunox clinical data will delay registration until 2008, while Solvay
fell after announcing it had suspended U.S. regulatory activities for its
cilansetron drug.
London's FTSE-100 Index rose by 13.60 points or 0.25% to 5491.00, while
Paris's CAC-40 Index added 13.42 points or 0.29% to 4588.73. Frankfurt's
DAX Index climbed by 22.89 points or 0.44% to 5199.48 and Milan's S&P MIB
Index ended up by 51 points or 0.15% to 34,307. The pan-European blue chip
Dow Jones Stoxx 50 Index gained 6.39 points or 0.19% to 3286.86.
* Dutch food group Royal Ahold 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 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 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 said 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 announced a drop in full year underlying
pre-tax profits to 581 million pounds compared to 645 million pounds last
year. Underlying operating profit 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 remained higher with its results in-line with market forecasts.
* Anglo-Australian logistics company Brambles 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, 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 ended sharply lower on news that the ongoing review of its
bifeprunox clinical data had 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 had 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.
* Shares in the Belgian cable television operator Telenet fell heavily
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)
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.
* Tyre maker Michelin said it would raise prices of car and light truck
replacement tyres sold in North America by up to 8%, effective February 1,
2006 in the U.S. and March 1, 2006 in Canada.
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
any questions please e-mail James Sang at james.sang@tfn.com. For more
information about Thomson Financial, please visit our web site at
http://www.thomsonfinancial.com. For more financial information at your
fingertips, please visit http://www.irchannel.com.
SOURCE Thomson Financial Corporate Group
back to top
