Netherlands AEGON (AEG) was down €0.22 to €13.38. The company reported fiscal 2005 net profit up 21% to €2.73 billion (+2% to €687 million in the fourth quarter, better than expected).
FORTIS was up €0.07 to €28.55. The company published final fiscal 2005 figures after a pre-release last week, when a briefcase with key data was stolen. Net profit before results on divestments was up 45% to €3.50 billion; banking net profit before divestments was up 53% to €2.43 billion; insurance net profit before divestments was up 9% to €1.23 billion.
France CARREFOUR was up €1.63 to €41.88. The company reported fiscal year net att. profit of €1.807 billion, +1.2%, above the consensus of €1.782 billion. EBIT falls 2.9% to EUR 3.175 billion vs. €3.191 billion consensus. By region, France's contribution fell 16% to €1.713 billion while the rest of Europe rose 15% to €1.145 billion, Americas +47.7% and Asia +26.7%. S&P Rating Services cuts the company's long-term credit rating to A from A+ to reflect an increase in capex, leading to negative free cash flow from 2006.
LAGARDERE was down €2.85 to €63.15. The company reported Media EBIT +7.1% to €503 million. It said that it is stripping out investments in digital TV and stock-options, EBIT was up 10.3% vs. guidance of 5%-9%. Net att. profit was €670 million, +35.3%, or ex-EADS €404 million, +20.8%.
Italy CAPITALIA was up €0.34 to €6.69. ING raised its target to €7.2 from €6.4 following a good set of results. Management anticipates an upward revision of the target 2007 EPS.
ITALCEMENTI was up €0.57 to €17.59. SocGen upped its fair value to €18.5 from €17.4 on the back of higher estimates. The broker reiterated its buy rating.
UNICREDIT was up €0.04 to €5.99. The EU Commission has reportedly launched legal proceedings against the Polish govt. for its attempts to stop the company's plans to merge its two units Pekao and BPH after its takeover of Germany' HVB. Meanwhile, the company said it remains confident in the positive outcome of the Polish Commission of Banking Supervision procedure.
Spain ENDESA was up €0.06 to €27.46. E.On's (EON) CEO Wulf Bernotat has said that E.On does not intend to raise its bid for the company, as the current offer is attractive enough.
Nordics ABB (ABB) was up SEK0.50 to SEK92.00. The company sees major acquisitions in the medium term of up to US$300 million, the Swiss magazine Facts reported, citing an interview with CEO Fred Kindle.
ASTRAZENECA (AZN) was up SEK13.50 to SEK387.50. The shares jumped on rumors that Swiss drugmaker Novartis (NVS) may be interested in bidding for the company. No one was immediately available to comment. The company starts patent litigation in the US against IVAX and its parent company Teva Pharmaceutical Industries. They are accused of willfully infringing on Co.'s patents protecting NEXIUM (esomeprazole magnesium).
Switzerland KUDELSKI was up CHF0.85 to CHF36.60. The company's Nagravision digital TV system has been selected by SES Astra for the company's new digital TV infrastructure in Germany. Separately, the dividend will be raised by 50% to CHF0.30.
JULIUS BAER was up CHF2.20 to CHF115.10. Citigroup upped its target to CHF143 from CHF112, buy. it said that there are three major positives in recent reporting: reassurance on attrition risks; new financial targets; and new growth plans for private banking. The broker thinks the targets could be beaten in private banking, if old-Baer operations converge more fully to old-SBC metrics and in asset management.
Germany BMW was up €1.16 to €40.32. The company posted better-than-expected 2005 profit of €3.287 billion and net profit of €2.239 billion. It proposed a 2005 dividend of €0.64 per share (vs. €0.62 year-over-year) and will propose another share buyback program of up to 10% of share capital, reportedly.
E.ON (EON) was down €0.90 to €90.65. The company expects in 2006 not to repeat the extraordinarily high net income seen in 2005 but rather thinks it would fall by more than half because of last year's gains from asset sales. Separately, the company has launched syndication of a loan of €32 billion to finance the acquisition of Endesa, Spanish sources said. UK ROYAL & SUN ALLIANCE was up £0.02 to £1.28. The company posted fiscal 2005 results above estimates. It said net written premiums of £5.4 billion; operating result of £698 million; pretax profit £865 million.
TESCO (TESOF) was down £0.03 to £3.29. The Office of Fair Trade said it may refer the supermarket sector to the Competition Commission. There are features of the sector which could distort competition and harm consumers, the OFT said.
Prepared by Zaida Espana, Valerie Vidal, Michael Sanderson, Mariella Mongio, Alexander Wisch, Holly Cook, Emma Stevenson, Pawan Girglani, Julien Manrique, and Rocio Opazo-Aniotz (Standard & Poor's); Alex Halperin (BusinessWeek Online)
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