Markets & Finance

European Movers: EADS, Man, Vestas Wind


Plus more European stocks making headlines in Monday's market

UK

HSBC

Up GBP0.54 to GBP8.20

FY PTP up 10%, impairment charge rises

Shares rise following in line FY figures. FY net operating income of US$61.751bn, +13%; PTP US$24.212bn, +10%; EPS US$1.65, +17.9%; total DPS US$0.90, +11.1%; Tier 1 cap ratio 9.3%. Loan impairment charges and other credit risk provisions US$17.242bn, up US$6.669bn from 2006. Says outlook for rest of 2008 is uncertain. Adds the economic slowdown and the credit outlook in the US may well get worse before they get better. Analysts forecast FY PTP of US$24.7bn, EPS of US$1.38 and DPS of US$0.86 and impairments US$10.7bn, +57%. A trader says that 'the results hit UK financials early but now people saying overdone'. Pressure to sell HFC - The shareholder activist Knight Vinke has presented chairman Stephen Green with four options to sever ties with HFC, its troubled US banking business, according to The Sunday Times.

XSTRATA

Up GBP0.63 to GBP40.23

FY att profit up 13%, below forecast

Posts FY attributable profit of US$5.543bn, +13%; basic EPS US$5.78, +9%; revenue US$28.542bn, +12%; final DPS US$0.34, + 13%. Says discussions with Vale are ongoing and may or may not lead to an offer for Co. Expects any impact on Chinese GDP growth and emerging market demand for commodities, including metals, to be muted. Analysts had forecast FY attributable profit of US$5.63bn.

PEARSON

Down GBP0.17 to GBP6.49

FY adj PTP, EPS beat estimates

Unveils FY adjusted operating profit of GBP634m, +14%; adjusted EPS 46.7p, +8%; DPS 31.6p, +7.8%; sales GBP4.218bn, +4%; adj PTP GBP549m, +9%; adjusted EPS 46.7p, +8%. Says has made good start to 2008 and expects further financial progress in all businesses. In Education, expects another year of good profit growth. In School business, says integration of recently acquired Harcourt businesses is progressing well. In 2008, expects School margins to be similar to 2007, after expensing integration costs relating to the acquisition. In 2009, expects School margins to rise to around 15%. Expects further profit improvement at FT Publishing this year, even without any growth in advertising revenues. Analysts had forecast FY adj PTP of GBP533m and adj EPs of 45.6p.

FRANCE

EADS

Up EUR 1.61 to EUR 19.04

Wins US$35bn US Air Force contract

The US Air Force picked Co.'s Airbus A330 over Boeing's 767 for an airborne refueling contract valued at as much as US$35bn.

NICOX

Down EUR 1.16 to EUR 9.54

Posts FY07 net loss of EUR 32.1m

Co. reports FY07 revenues of EUR 20.62m vs. EUR 9.63m in 2006; net loss of EUR 32.144m vs. EUR 24.696m in 2006.

GERMANY

MAN

Up EUR 3.76 to EUR 90.98

Scania holding sale fuels takeover spec for Co.

Investor AB and the Wallenberg Foundation will divest their holdings in Scania to VW for SEK200 per share. Investor holds 11.0% of the capital and 20.0% of the votes. The divestment will generate cash proceeds of SEK17.6bn for Investor. The transaction means VW will increase its voting right to 68.6% in Scania. The transaction is subject to customary antitrust clearance. One local broker expects, however, market speculation that VW will launch an offer Scania and anticipates Scania will buy Co. by the end of 2008 or early 2009, once mkt has softened, with VW staying the major shareholder.

FRAPORT

Up EUR 0.62 to EUR 49.85

FY net profit beats estimates

Co. reports FY07 results with sales of EUR 2.329bn vs a Reuters poll of EUR 2.311bn and net profit of EUR 213.7m vs EUR 212m. For 2008, expects passenger growth at Frankfurt Airport to reach 1%-2%, while net profit and revenue are expected to be lower y/y. However EBITDA is seen up y/y. Unicredit says Co.'s results are satisfying.

ITALY

ALITALIA

Down EUR 0.03 to EUR 0.60

Net debt at January up 6.8% m/m

Co. has announced that its net debt at the end of January stood at EUR 1.28bn, up 6.8 m/m. Air France-KLM aims to make a binding offer for Co.'s flight operations but only a part of its 49% affiliate AZ Servizi activities. Filt-Cgil secretary general, Fabrizio Solari, said that Air France is only interested in part of AZ Servizi's maintenance and a smaller part of its handling activities. Adds that the remaining parts of AZ Servizi would be kept by the state holding Fintecna.

FINMECCANICA

Up EUR 0.08 to EUR 20.47

Credit Suisse lifts target to EUR 32 from EUR 28 as believes Co. will achieve its 2010 targets of EUR 16.5bn revenue and 10% EBITA margin and adjusts valuation accordingly. Believes that FY07 results due out on 17 March will be a positive catalyst and expects the to-be-issued 2009 guidance to boost credibility of 2010 targets. Says that Co.'s management targets revenues of EUR 16.5bn and operating profit margin of 10% in 2010. Says that the EUR 16.5bn revenue target implies organic CAGR of 6.7% for 2007-2010, which believes is achievable given EUR 36.6bn order book and strong positioning on growth platforms. Reiterates outperform.

NETHERLANDS

TOMTOM

Up EUR 0.24 to EUR 31.44

Broker thinks TA deal will go ahead

Reuters reports that the EC is sending a statement of objections to Co. on its plans to purchase Tele Atlas on concerns that the deal would be anti-competitive, a source with knowledge of the situation said. This 'Statement of Objections' does apparently not mean the deal will be rejected. Rabo Securities thinks it is highly likely the deal will go ahead.

NORDICS

SCANIA

Down SEK12.50 to SEK138.00

VW will not launch full takeover bid

Investor and the Wallenberg Foundation sell their holdings in Co. to VW for SEK200 per share. VW will as a result increase its voting right to 68.6%, corresponding to 37.73% of the capital. VW says it will not launch a bid for Co. nor delist it, suggesting there is no imminent bid. One local broker points out VW received a waiver in February 2007 and has special dispensation not to bid for the whole company even though it holds over 40%. Anticipates Co. will buy MAN by the end of 2008 or early 2009, once mkt has softened, with VW staying the major shareholder.

VESTAS WIND

Up DKK11.00 to DKK516.00

Lands massive NA order / Danish investors eyes renewables

Co. has received an order for 109 units of the V82-1.65 MW wind turbine from the North American division of E.ON Climate & Renewables. The wind turbines have a total installed capacity of 180 MW. Meanwhile, Co. will have to spend DKK100bn on new factories and has to increase its workforce five-fold by 2020, if it wants to maintain its position as the world's largest manufacturer of windmills, Borsen reports. Separately, a new investment fund under Proark's leadership will invest c.DKK16bn in sustainable energy in the coming three to four years, business.dk writes.

MOELLER MAERSK

Down DKK1200.00 to DKK49700.00

Forms alliance with rivals

In the midst of soaring oil prices Co.'s Maersk Line, Swiss MSC and French CMA CGM are more or less forced to form an alliance. The world's three biggest container operators will cooperate on four Pacific routes to three destinations on the US west coast, Danish Borsen reports.

SPAIN

COLONIAL

Down EUR 0.07 to EUR 1.23

Agreement on bid likely – UBS

The decisions from Co.'s shareholders Portillo and Nozar and from Co.'s financing banks regarding the ICD bid should be known today. UBS thinks an agreement is highly probable, noting shareholders' gearing and limited alternatives available. Co. says made FY07 net profit of EUR 85.4m with turnover up 264% y/y to EUR 840.3m. Says EBIT rose 175% y/y to EUR 400.3m. Says real estate assets are valued at EUR 11.63bn, of which 79% is rental - valued at EUR 9.16bn. Says NAV stands at EUR 2.35 per share, down 9% y/y. Adds net debt reaches EUR 8.749bn, with loan-to-value ratio of 67.2%.

FERROVIAL

Down EUR 0.40 to EUR 43.10

Asset disposals in focus – press

The Australian group Macquarie is preparing to swoop on one or more of Britain's largest airports if their owner, BAA, is obliged to sell them because of financial or regulatory difficulties, according to The Sunday Telegraph. Kepler adds that Co. could be close to closing a deal to sell World Duty Free for c.GBP400m.

SWITZERLAND

UBS

Down CHF1.04 to CHF33.22

Singapore holds 5% / Cr. Suisse cuts target

Co. says the government of Singapore controls 9.54% of Co. through its investment vehicle GIC. Credit Suisse cuts target to CHF57 from CHF67, outperform. Thinks further writedowns appear likely and could be large.


Steve Ballmer, Power Forward
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