Markets & Finance

European Movers: Glaxo, Infineon, Unilever


Plus more European stocks making headlines in Thursday's market

UK

GLAXOSMITHKLINE

Down GBP0.89 to GBP10.78

Competition, Avandia sales to hit FY08 EPS

Posts FY turnover of GBP22.716bn, -2% cer (vs cons GBP22.550bn); EPS 99.1p, +10% (vs cons 97p); DPS 53p, +10%; further buyback of GBP6bn in 2008; Seretide/Advair sales GBP3.5bn, +10%; Avandia group sales GBP1.2bn. Says in 2008, the impact of lower Avandia sales together with increased generic competition will lead to a mid-single digit percentage decline in business performance EPS, at cer.

BG PLC

Up GBP0.39 to GBP11.16

4Q beats ests, hikes FY DPS

Posts 4Q earnings of GBP558m, +36%; EPS 16.6p, +38%; DPS 5.76p, +37%; total operating profit GBP863m, +7%. FY DPS 9.36p, up 30%. Expects 2009 production to be between 680,000 and 710,000 boepd and anticipates production growth from 2005 to 2012 to show a compound annual growth rate of between 6% and 8%. Says total reserves and resources have increased by around 3b boe equivalent in two years (up 42%), and now exceed 10b boe. Increases Tupi reserve estimate to 10b boe from 1.7b boe. Analysts expected 4Q clean earnings of GBP519m, EPS of 15.37p.

BT GROUP

Down GBP0.15 to GBP2.48

Investors hang up on weak Wholesale

Announces 3Q revenue of GBP5.154bn, +1% (cons GBP5.25bn); New Wave revenue of GBP2.014bn, +7%; EBITDA before specific items and leaver costs of GBP1.47bn (cons GBP1.46bn), +2%; PTP GBP601m, -7%. EPS 5.9p, +2%. Expects continued growth in revenue, EBITDA, EPS and DPS, and a significant FCF inflow in 4Q. Citigroup notes a full quarter’s impact of 2Q08 LLU migration acceleration (-GBP51m) and further decline in low-margin transit revenues meant Wholesale revenues declined 11% y/y (vs -8% in 2Q). Bear Stearns cuts to peer perform on below-expected 3Q revenue figures, adding Wholesale overshadowed improving Global Services.

YELL

Down GBP0.54 to GBP2.76

Shares down on results, poor outlook

Co. announces 9M revenue of GBP1.547bn, +7.9% (+10.9% CER); adj EBITDA GBP522m, +10.3% (+12.8% CER); adj profit after tax and minority interests GBP202.40m, +6.2%; adj dil EPS 25.8p, +5.3%. Says results are fully in line with expectations in all markets. Adds it is on track to meet YE earnings and cash expectations despite toughened trading conditions, particularly in the UK. Expects to grow across markets at rates either similar to or higher than this year.

ROLLS-ROYCE

Down GBP0.49 to GBP4.31

Stock down on disappointing payout

Posts FY group sales of GBP7.435bn (up 6% u/l); services sales GBP4.265bmn, +9%; order book up 76% to a record GBP45.9bn. Says profit before financing was GBP512m; u/l PTP GBP800m, +13%. Adds net cash inflow, before a special contribution of GBP500m into the UK pension schemes, was GBP562m. Raises shareholders returns by 35% and increases final div by 51% to 8.96p, bringing FY DPS to 13p.

FRANCE

FRANCE TELECOM

Up EUR 0.82 to EUR 23.42

French state denies stake sale talk - press

Bruno Bezard, the head of French state shareholding vehicle ERAP, has denied talk that it is preparing to sell a stake in Co, Bloomberg reports. This morning, Le Figaro wrote that the French government could sell a further 8% stake in Co. (worth EUR 4.7bn) by the end of March. In broker news, Lehman Brothers ups target to EUR 30 from EUR 28.50, keeps overweight, arguing placement speculation has pegged Co.’s’s valuation back to increasingly attractive levels. Dresdner Kleinwort upgrades to buy from add on similar logic. The French professional football league has awarded television rights to Ligue 1 matches through 2008-2012 to Canal+ and Co.’s Orange in a EUR 668m deal. Orange has the Premium 3 package, allowing it to screen the big match on Saturday evening and on demand and mobile rights. It has been reported that Canal+ is paying EUR 460m p.a.

UNIBAIL RODAMCO

Down EUR 4.25 to EUR 156.65

Net profit hit by impairment

Co. reports FY net rental income of EUR 771m, in line with expectations. Total net profit comes in at EUR 959.4m, after revaluation results of EUR 1.755bn, and after an impairment of EUR 1.335bn of goodwill recorded as a result of accounting rules applied to the merger with Rodamco. A consensus forecast had expected net profit of EUR 2.045bn. Proposes dividend of EUR 7.0 per share, lower than expected.

SANOFI-AVENTIS

Down EUR 0.58 to EUR 52.19

Dismisses GSK cancer vaccine as inferior - FT

Co. has criticised GlaxoSmithKline’s new cervical cancer Cervarix as inferior, saying GSK results on Cervarix were less conclusive than those from Co.’s Gardasil, the FT reports.

GERMANY

INFINEON

Down EUR 0.91 to EUR 5.79

1Q group EBIT loss and Com outlook weigh

Co. reported 1Q EBIT of EUR 65m and sales of EUR 1.09bn, excluding Qimonda. The group EBIT loss for the quarter was EUR 368m. The 1Q EPS loss is EUR 0.53. Particularly weighing on the stock is the weak outlook for the communication business. On the broker front, Exane downgrades Co.’s stock to underperform from outperform; EUR 7.00 target.

DEUTSCHE BANK

Up EUR 0.27 to EUR 75.27

Shows interest in Postbank as 4Q provides cheer

Co. reported in-line 2007 PTP of EUR 8.7bn and recommends a dividend payment of EUR 4.50 per share. Said net writedowns in leveraged finance in 4Q were less than EUR 50m and that it had no net writedowns related to the subprime market, which some had feared would lead to a profit warning. Co. made a net profit of almost EUR 1bn in 4Q, roughly half of what it made for the same period a year ago - but this was expected. A negative is that risk costs are on the rise, both in retail banking, through the higher business volumes, and in investment banking. For Landsbanki Kepler, DZ Bank and ABN Amro’s comments, see Broker Views & News - Germany. On the M&Q front, CEO Josef Ackermann said a merger with Postbank would make sense for Germany.

POSTBANK

Up EUR 0.89 to EUR 57.89

Deutsche Bank says merger makes sense / Broker action

Deutsche Bank’s CEO said a merger with Co. would make sense for Germany. On the broker front, Dresdner upgrades to add from hold. Goldman Sachs downgrades to neutral from buy, lifting the target to EUR 67.50 from EUR 63.51. See Broker Views & News - Germany.

ITALY

RCS MEDIA

Down EUR 0.02 to EUR 2.47

FY07 EBITDA of EUR 360.3m, up 26%

Co. has closed 2007 with a 26% rise in FY core profit to EUR 360.3m from EUR 286.7m in 2006. Says that consolidated revenues rose 15% to EUR 2.7387bn, lifted by sales from Spain’s Recoletos, which Co. acquired last year. Added that excluding Recoletos’ revenues of EUR 251.5m, sales were up 4.5%.

INDESIT

Down EUR 0.36 to EUR 9.10

CEO sees slight rise in profitability in 2008

Co. has disclosed that FY07 net profit rose 38% to EUR 105m in 2007 as sales grew 5.8% compared with a year earlier. Adds that revenue stood at EUR 3.44bn while net debt fell to EUR 331m from EUR 424m in 2006. Regarding the outlook, expects a slight rise in profitability on moderate sales growth this year, according to CEO Marco Milani. Added that Co. Milani also said the company would keep the promise made last year to pay a dividend worth around 50% of net profit.

GENERALI

Down EUR 0.21 to EUR 27.92

FY07 gross premiums up 2.7% to EUR 64.8bn

Co. has unveiled a 9.1% increase on an APE basis in new life business volumes to EUR 4.6bn and a 13.4% rise in non-life business premiums to EUR 20.4bn. Adds FY07 gross premiums were up 2.7% to EUR 64.8bn.

PARMALAT

Down EUR 0.01 to EUR 2.38

To report FY07 prel results today

A local broker expects sales at EUR 3.8bn, EBITDA at EUR 360m and net profit at EUR 690m.

NETHERLANDS

CORPORATE EXPRESS

Up EUR 0.24 to EUR 5.24.

4Q net profit beats estimates

Co. reports 4Q sales of EUR 1.410m, slightly lower than expected. Net profit comes in at EUR 128.3m vs consensus expectations of EUR 89m. Reports higher-than-expected book profit on ASAP Software. EBIT is at EUR 54.3m vs consensus estimate of EUR 55m. Organic sales growth in North America is at +3% vs -1% in the previous quarter. Says implementation of strategy is on track. Says economic outlook for 2008 is uncertain but Co. says will outperform the market. Proposes dividend of EUR 0.21 per share, flat y/y.

UNILEVER NV

Down EUR 0.63 to EUR 21.03

4Q sales growth tops estimates

Co. reports 4Q sales of EUR 9.89bn vs expectations of EUR 10.02bn, operating profit of EUR 1.1bn vs expectations of EUR 1.14bn and net income of EUR 787m vs expectations of EUR 668.5m. 4Q underlying sales growth is at 6.1%, higher than the expected 5.2%. Plans to buy back at least EUR 1.5bn shares in 2008. Proposes final dividend of EUR 0.50 per share. Remains confident of meeting 2010 goals. Expects underlying sales growth in 2008 to be towards the upper end of 3%-5% target range and sees a further underlying improvement in operating margin.

TOMTOM

Up EUR 0.60 to EUR 35.62

Navteq results solid / LK tells TA to accept offer

Digi-map producer NAVTEQ, which Nokia is waiting clearance for to acquire, reported strong 4Q, with sales up 41% organically. Noting this, Landsbanki Kepler also changes its view on TeleAtlas from a reduce rating to now supporting Co.’s offer, as TA now trades below the offer price of EUR 30 per share.

NORDICS

S-E BANKEN

Up SEK1.50 to SEK142.50

FY07 operating result up 9% y/y

Co. says operating result for 2007 amounted to SEK17.0bn, up 9% y/y. Says ROE was 19.3% and core capital ratio 8.6%. Proposes increase in dividend by SEK0.50 to SEK6.50.

SKANSKA

Down SEK3.50 to SEK111.50.

4Q PTP below forecast

Co. reports 4Q sales of SEK38.41bn vs a Reuters forecast of SEK37.64bn and PTP of SEK1.73bn vs SEK1.75bn. Says FY07 order bookings are up 13% adjusted for fx, proposes ordinary DPS of SEK5.25 vs SEK8.75 and extraordinary DPS of SEK3.00. Says buidling construction remains positive in main markets.

AKER YARDS

Down NOK4.70 to NOK48.00

Profit warning - 4Q results postponed

Issues profit warning with FY07 results to be somewhat lower than previous guidance and postpones the release of 4Q results to 3 March.

NORSKE SKOG

Unchanged at NOK30.50

4Q misses forecast - no DPS

Co. reports 4Q results with operating revenues of NOK6.956bn vs a Reuters forecast of NOK6.810bn, EBIT of NOK176m vs NOK258bn, pretax loss of NOK82m vs PTP of NOK4m, net loss of NOK880m vs a net loss of NOK1.274bn. Co. will not pay DPS for 2007.

SPAIN

SANTANDER

Unch. 11.60 to 11.60

FY07 dividend up 25% y/y

Co. says FY07 NII stands at EUR 15.295bn (NII ex dividends stands at EUR 14.882bn), with operating profit of EUR 14.842bn and net attributable profit of EUR 9.06bn. Adds net profit ex one offs is EUR 8.11bn, below consensus expectations of EUR 8.258bn. Says Tier 1 ratio stands at 7.71% and NPL ratio at 0.95%. Proposes dividend up 25% y/y to EUR 0.6507. Adds makes writedown of EUR 737m on 24.9% stake in US group Sovereign Bancorp.

SWITZERLAND

CLARIANT

Down CHF0.53 to CHF8.22

Goldman downgrades to sell from neutral and lowers target price to CHF7.50 from CHF12.50. The broker has concerns over structural challenges facing the company and debt refinancing.

GIVAUDAN

Down CHF57.50 to CHF984.50

Goldman adds to conviction sell list having downgraded to sell from neutral. Believes Co.;s premium valuation fails to reflect consumer spending and currency headwinds in 2008. Lowers price target to CHF900 from CHF1,060.

PETROPLUS

Up CHF0.80 to CHF70.30

Shares up after solid 4Q/FY results

Co. posted 2007 net income from continuing operations of US$310.4 million, better than expected. Refining and marketing EBITDA was approximately US$629m. Vontobel says that overall, 4Q numbers proved better than expected despite a combination of further high crude prices, seasonally weaker refining margins and reduced operations at Coryton. Broker says the outlook remains reassuring and it believes much of the current challenging market environment is already priced in the shares.

SYNGENTA

Down CHF7.75 to CHF271.25

2007 net profit beats expectations, coming in at US$1.109bn on sales at US$9.240bn, also ahead of expectations. EPS was US$11.45 in 2007. Co. says it sees double-digit growth in EPS through to 2010. In broker action, Goldman lowers price target to CHF250 from CHF255, neutral.


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