Wednesday 30 November, 10:15 AM GMT (Thomson Financial): European markets
have opened in negative territory, led by the technology and oil & gas sectors
while the media and telecoms sectors buck the trend.
Amongst the key results, Corus Group's third quarter pre-tax profits have
dropped on falling selling prices and higher raw material costs but its share
price remains buoyant as the results still topped forecasts. Kingfisher's
quarterly retail profits have also declined, with international profit growth
more than offset by lower profits in the U.K., while Daily Mail and General
Trust's full year pre-tax profits have risen, with the possibility of selling
regional newspapers and returning some of the proceeds to shareholders.
Elsewhere, Swisscom is tackling a takeover ban while TDC has decided to go
private after the fund-owned Nordic Telephone Company offered 382 Danish
kroner per TDC share.
London's FTSE-100 Index is down by 38.90 points or 0.71% to 5452.10, while
Paris's CAC-40 Index has fallen by 30.44 points or 0.66% to 4558.29.
Frankfurt's DAX Index is lower by 24.76 points or 0.48% to 5174.72 and Milan's
S&P MIB Index has declined by 160 points or 0.47% to 34,147. The pan-European
blue chip Dow Jones Stoxx 50 Index is weaker by 18.20 points or 0.55% to
3268.66.
* Anglo-Dutch steel company Corus Group's third quarter pre-tax profit
has dropped to 80 million pounds from 227 million pounds last year,
due to the continuing downward pressure on selling prices along with a
significant increase in raw material costs. Operating profit has
declined to 103 million pounds from 247 million pounds last year,
while turnover has risen to 2.383 billion pounds from 2.356 billion
pounds last year. However, its share price is higher as the results
topped market expectations, coupled with an improved outlook. The
company said reduced steel production throughout Europe, combined
with lower imports, has gradually restored the balance between
supply and demand, adding that European stock levels have returned to
normal and demand has improved during the fourth quarter. Meanwhile
selling prices have stabilised and are beginning to recover, Corus
added.
* Home improvement retailer Kingfisher has posted a decline in third
quarter retail profits to 157.1 million pounds compared to 199.8 million
pounds in the same quarter last year, with international profit growth
more than offset by lower profits in the United Kingdom. Retail sales
rose to 2.068 billion pounds from 1.937 billion euros in the prior year,
but in the U.K. alone, retail profits slumped to 53.3 million pounds
from 105.5 million pounds last year, with the domestic environment
continuing to weaken, significantly impacting B&Q's earnings. Outside
the U.K., where Kingfisher generates half its sales, strong growth and
development continued, with sales up 15% and profits up 9%.
* Greece's Alpha Bank has posted a rise in third quarter net profits to
138.2 million euros compared to 104.3 million euros in the same quarter
last year, reflected by earnings per share of 0.48 euros compared to
0.37 euros previously. Net interest income rose to 315.2 million euros
from 265.7 million euros in the prior year, with commissions up to 94.9
million euros from 79.7 million euros before.
* Business software supplier Sage Group has posted full year pre-tax
profits of 205.4 million pounds compared to 181.1 million pounds last
year on the back of its expanding customer base. Operating profit has
risen to 211.1 million pounds from 184.5 million pounds in the prior
year, on turnover of 776.6 million pounds compared to 682.6 million
pounds last year. Meanwhile the dividend has been raised to 2.875 pence
per share from 2.33 pence.
* Daily Mail and General Trust's full year pre-tax profits have risen to
162.9 million pounds compared to 124.6 million pounds last year,
reflected by earnings per share of 24.9 pence from 15.5 pence. Turnover
rose to 2.138 billion pounds from 2.109 billion pounds in the prior
year, while the dividend was increased to 12 pence from 11 pence before.
The company said it would broaden its review of its Northcliffe regional
newspapers business announced earlier this year to include a possible
divestment. The company said it would return some of the proceeds of a
sale to shareholders.
* Swisscom said its board of directors has held intense discussions with
representatives from the Swiss federal government in ongoing efforts to
overturn government-backed board members vote against the company's
plans to make foreign acquisitions. The government, which holds a two-
thirds majority in Swisscom instead supports the distribution of free
capital to shareholders. Swisscom says it will inform the general public
next week at the earliest about its future strategy regarding this
issue.
* Danish telecommunications operator TDC has decided to go private after
the fund-owned Nordic Telephone Company offered 382 Danish kroner per
TDC share, valuing the entire company at 76 billion kroner.
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
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SOURCE Thomson Financial Corporate Group
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