Wednesday 30 November, 1:00 PM GMT (Thomson Financial): European markets
have recouped some of their intra-day losses but still remain below parity
ahead of the opening session on Wall Street.
The media sector is providing some upside, led by Daily Mail and General
Trust after it posted full year pre-tax profits of 162.9 million pounds
compared to 124.6 million pounds last year, with the possibility of regional
newspaper divestments and the return of some proceeds to shareholders. Telecom
stocks are edging higher, led by TDC on news that the Danish
telecommunications operator has decided to go private.
Elsewhere, 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 Swisscom is tackling a takeover
ban, which has been endorsed by its majority shareholder, the Swiss federal
government.
London's FTSE-100 Index has fallen by 38.80 points or 0.71% to 5452.20,
while Paris's CAC-40 Index has weakened by 22.62 points or 0.49% to 4566.11.
Frankfurt's DAX Index is lower by 13.31 points or 0.26% to 5186.17 and Milan's
S&P MIB Index has declined by 182 points or 0.53% to 34,125. The pan-European
blue chip Dow Jones Stoxx 50 Index is down by 18.69 points or 0.57% to
3268.17.
* 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, had gradually restored the balance between supply and
demand, adding that European stock levels had returned to normal and demand
had improved during the fourth quarter. Meanwhile selling prices have
stabilized 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,
with 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, and commissions were 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 had held intense discussions with
representatives from the Swiss federal government in its effort to overturn a
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.
* British Airways has announced plans to re-structure its business with a 35%
reduction in the number of its 1,715 managers by March 2008.
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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