European Movers: Alcatel-Lucent, Siemens, Novo Nordisk

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GERMANY

SIEMENS Up EUR 2.18 to EUR 75.57... Fiscal 2Q core earnings top expectations - Co. posted a sharper-than-expected 67% slide in fiscal 2Q net income to EUR 412m due to discontinued operations and project delays. Quarterly sales up 2% y/y at EUR 18.1bn is also lower than expected. Order intake of EUR 23.4bn, however, tops the consensus view, as does operating profit of EUR 1.2bn. For the full year, Co. expects group profit from operations and income from continuing operations to remain flat. It is more optimistic on the revenues front.

SAP Down EUR 0.66 to EUR 32.39... Quarterly update disappoints - with revenues from software licences and related services up a lower-than-expected 15% to EUR 1.74bn. A 20% rise was expected. All in all, weak US sales and the negative outlook for Co.'s new midmarket product Business ByDesign is another disappointment.

TOGNUM Up EUR 0.65 to EUR 18.50... Daimler to acquire 22.3% equity interest in Co., allowing it to protect its long-term supply relations with Co. The purchase price is approximately EUR 585m, making Daimler the largest shareholder in Co.

ITALY

BANCO POPOLARE Up EUR 0.21 to EUR 12.78... Cheuvreux lifts target to EUR 12.00 from EUR 11, following the new combination between Agos and Ducato which retains as good news. Calculates 50 bps impact to core tier 1, ahead of estimates. Keeps underperform rating as the Italease issue remains. Co. and France's Credit Agricole have decided to combine their units Ducato and Agos in a move to create Italy's largest consumer credit group.

SARAS Down EUR 0.02 to EUR 3.68... JP Morgan downgrades to neutral from overweight, after a 17% outperformance following the announcement of a share buyback programme, but continues to see the stock as a good, lowrisk way to play the distillate story in 2008. Regarding sector, lowers forecasts for new refining margin and crude price assumptions and operational issues. Lowers EPS estimates by an ave. 17% for FY08-FY10. Chairman Gian Marco Moratti has told in an interview with Il sole 24 Ore that Co. aims to make 'an important acquisition' that would strengthen its core business and in an area like the Mediterranean or the English Channel. Moratti also said that Co. sees investments during its 2006-2009 business plan period increasing to EUR 800m, from an initially planned EUR 600m, because of market demand.

NETHERLANDS

REED ELSEVIER NV Up EUR 0.45 to EUR 12.17... US FTC extends ChoicePoint deal review - The US Federal Trade Commission has extended its review of Co.'s US$4.1bn buy of ChoicePoint, according to the US company. Adds the FTC has requested for additional information regarding the proposed merger between the companies. The two companies have also been notified of parallel reviews by the attorneys general of certain states.

NORDICS

STOREBRAND Up NOK6.95 to NOK48.45... 1Q boosted after law change - 1Q group profit comes in at NOK535m vs a loss of NOK71m seen in a Reuters poll, life insurance profit at NOK448m vs NOK21m est, asset management profit at NOIK48m vs NOK26m est, banking profit at NOK51m vs NOK46m est. Says the results got a positive boost after implementation of a new insurance act, with life insurance alone benefiting NOK200m following the new legislation.

NOVO NORDISK Up DKK17.50 to DKK329.00... Ups op. profit outlook excluding one-offs - Raises underlying op. profit guidance Co. raises outlook for FY08 operating profit growth in local currencies, excluding one-offs, to close to 25% vs 20% previously, with sales growth now expected at 10-13% from 10% before. Meanwhile, Co. trims outlook for operating profit in local currencies, including one-offs. 1Q EBIT beats expectations, coming in at DKK2.8bn, on sales of DKK10.6bn vs DKK10.4bn est. 1Q modern insulin sales at DKK3.8bn vs DKK3.7bn est, human insulin sales at DKK2.9bn vs DKK3.4bn est and 1Q Novoseven sales at DKK1.4bn vs DKK1.5bn est.

S-E BANKEN Down SEK6.50 to SEK145.50... Costs 2% higher than est - sees signs of slowdown - Co. reports 1Q NII of SEK4.22bn vs a Reuters poll of SEK4.