European Movers: Arcelor Mittal, Adidas, TomTom

Plus more European stocks making headlines in Tuesday's market

by S&P MarketScope Europe Staff

UK

LLOYDS TSB Down GBP0.04 to GBP4.49... On track for a good 1H08 performance - Co. says remains firmly on track to deliver a good 1H08. Excluding impact of market dislocation and insurance-related volatility, says each division and the group achieved revenue growth in excess of cost growth, and a double-digit percentage increase in PTP in 1Q08. Impact of market dislocation on Wholesale and International Banking PTP was GBP387m. Capital ratios remain robust and rate of risk-weighted asset growth in 2008 is expected to be consistent with previously indicated high single digit, low double-digit range. In 1Q08, says high levels of volatility in fixed income and lower equities contributed to adverse volatility of GBP474m relating to insurance business, excluding policyholder interests volatility.

CAPITA Up GBP0.23 to GBP6.87... Performed strongly in first 4M of 2008 - Says has performed strongly in first 4M of 2008. Adds businesses across group are trading well and the market for significant outsourcing opportunities remains buoyant.

BOVIS HOMES Down GBP0.13 to GBP4.59... 1H to be significantly lower than anticipated - Says conditions in the housing market have deteriorated sharply. Adds reservation levels since the date of preliminary results announcement have been disappointing: reservations to date for 2008 1,382 homes, -30% y/y. Says 1H results will be significantly lower than anticipated. Adds outlook for the remainder of 2008 is difficult to predict.

FRANCE

VEOLIA ENVIRONNEMENT Down EUR 2.89 to EUR 43.01... 1Q08 op. profit disappoints / Conf. call update - Co. posts 1Q08 sales of EUR 9.085bn, up 18.9% ex currencies and better than expected. Says op. profit came in at EUR 701.2m vs. consensus of EUR 744m. Senior Exec VP Jerome Contamine reportedly says during a conference call that FY08 operating maring will be 'slightly lower' y/y. S&P Equity Research upgrades to sell from strong sell on the recent fall in the share price. Cuts target to EUR 40 from EUR 44.

ARCELOR-MITTAL Up EUR 1.92 to EUR 60.00... Exane ups tgt / Deal with China Oriental Group - Exane BNP Paribas lifts target by 30% to US$130. Keeps outperform. Separately, China Oriental Group as signed a sourcing agreement with Co., securing supplies of iron ore and coking coal at prevailing market prices until the end of 2010. Co. owns 29.63% of China Oriental.

NICOX Down EUR 4.17 to EUR 10.37... No global phase 3 for glaucoma drug - Co. and its partner Pfizer announced that Pfizer has taken the decision not to launch a global phase 3 development program for PF-03187207, a drug for patients with primary open-angle glaucoma and ocular hypertension.

GERMANY

HYPO REAL ESTATE GROUP Down EUR 0.83 to EUR 22.85... Writes down EUR 175m in 1Q on its portfolio of structured credits, and reportedly said financial markets are still dysfunctional in some areas. 1Q PTP was a lower-than-expected EUR 6m after deducting the effect of a mandatory convertible bond.

ADIDAS Up EUR 2.30 to EUR 42.70... Quarterly net earnings top expectations - with profit coming in at EUR 169m on in-line sales of EUR 2.621bn. Co. sees no negative impact from protests against Chinese rule in Tibet, it says.

INFINEON Up EUR 0.14 to EUR 6.46... Talk of bid pushes stock higher - Intel and Samsung are thought to be putting more than EUR 10 per share on the negotiating table.

ITALY

LOTTOMATICA Up EUR 0.04 to EUR 20.59... To release 1Q results today - Ahead of Co.'s results due out today, UBS expects sales of EUR 462m (+9.4% y/y), EBITDA at EUR 202m (-4.5% y/y, 43.6% margin from 48.5% in 1Q07) while reported EBIT should come in at EUR 125m.

PARMALAT Down EUR 0.03 to EUR 2.20... Seeks US$2.2bn from Citigroup over the bank's alleged responsibility for Co.'s 2003 bankruptcy, people familiar with the situation reportedly said.

NETHERLANDS

TOMTOM Up EUR 1.74 to EUR 24.49... Lawyer thinks EC to approve deal - A Brussels competition lawyer thinks that regulators will probably approve the acquisition of TeleAtlas by Co.