April 29 (Bloomberg) -- European stocks fell for the first time in five days as some earnings forecasts disappointed investors and lower metal prices weighed on mining shares.

Michelin & Cie. dropped the most in almost a decade after the world's second-largest tiremaker said profit may decline this year. Ciba Specialty Chemicals AG posted the biggest drop since 2001 as earnings missed analysts' estimates. Rio Tinto Group led a retreat in mining shares, the best performers this month after oil stocks. Higher earnings from Royal Dutch Shell Plc and BP Plc lifted energy producers.

Europe's Dow Jones Stoxx 600 Index lost 0.9 percent to 320.67 with all 18 industry groups falling except oil and technology shares. The Stoxx 50 slipped 0.5 percent and the Euro Stoxx 50, a measure for the euro region, dropped 0.6 percent.

``On balance the results today are negative,'' said Kevin Lilley, a fund manager at Royal London Asset Management, who oversees $2.5 billion. ``What you are generally seeing is continued deterioration of economic news which will eventually reduce profits.''

The Stoxx 600 has gained 4.8 percent in April, on course for its first advance in six months, after companies from Ericsson AB to Bayer AG reported earnings that beat analysts' estimates and interest-rate cuts from the Federal Reserve bolstered investor confidence. The rally in European equities has trimmed this year's decline to 12 percent as writedowns by financial firms reach $309 billion.

National Markets

National benchmarks retreated in 15 of 18 western European markets. France's CAC lost 0.7 percent, while Germany's DAX fell 0.6 percent. The U.K.'s FTSE 100 was little changed, helped by Shell and BP.

Indexes extended declines after reports showed consumer confidence in the U.S., the world's largest economy, slid to a five-year low and property values slumped.

Michelin tumbled 9.2 percent to 60.62 euros, the biggest retreat since September 1998. The company said operating profit may fall in 2008, compared with a February forecast that sales and the operating margin would ``make further progress.''

First-quarter revenue slipped 2.6 percent to 4.1 billion euros ($6.4 billion) after deliveries declined in mature markets and as a weak dollar cut the value of sales when converted into euros, Michelin said yesterday.

Merrill Lynch & Co. downgraded the shares to ``neutral'' from ``buy'' after the release. Citigroup Inc. lowered its recommendation to ``hold'' from ``buy,'' and Morgan Stanley reduced its share-price estimate to 73 euros from 86 euros.

Continental, Ciba

Ciba sank 8.6 percent to 33.56 francs, the steepest slide since September 2001. The world's biggest maker of colors for plastics posted a 51 percent slump in profit to 37 million francs ($36 million) on slowing demand and higher costs for oil-derived raw materials. The company also lowered its earnings guidance.

Analysts predict profits at companies in the Stoxx 600 will be little changed this year, based on data compiled by Bloomberg on April 25. That's down from 11 percent growth forecast at the start of the year.

Danske Bank A/S retreated 4.7 percent to 162.75 kroner after the largest Nordic lender by assets posted a 33 percent drop in first-quarter profit to 2.57 billion kroner ($537 million) as trading income slipped and the bank booked losses on some loans.

Sandvik AB tumbled 8.3 percent to 99 kronor, the steepest drop since November 2002. The world's biggest maker of metal- cutting tools reported a 19 percent decline in first-quarter profit to 1.89 billion kronor ($313 million) as earnings in the materials division declined on swings in nickel prices. That's lower than the median analyst estimate of 2.06 billion kronor in a Bloomberg survey.

Mining Shares

Rio, the world's third-largest mining company, dropped 3.5 percent to 6,010 pence and BHP Billiton Ltd., the biggest, decreased 3.1 percent to 1,818 pence.

Gold and copper retreated in London as a rebound in the dollar reduced demand for metals as an alternative asset.

Daimler AG lost 1.4 percent to 50.19 euros. The second- largest maker of luxury vehicles said first-quarter profit fell 32 percent, more than estimated, after a stake in former U.S. unit Chrysler dragged down earnings and truck sales dropped.

Shell rallied 5.3 percent to 2,035 pence after the oil company said first-quarter profit climbed 25 percent to $9.08 billion, boosted by record crude and higher natural gas prices. Excluding inventory changes and one-time items, earnings topped analysts' estimates.

BP climbed 6 percent to 613 pence after Europe's second- biggest oil producer said first-quarter profit advanced 63 percent to $7.62 billion.

The Europe Stoxx Oil & Gas Index increased 2.1 percent to the highest in more than three months.

Shares of GfK AG, Germany's biggest market researcher, added 7 percent to 28.32 euros and Taylor Nelson Sofres Plc, the world's second-largest market research company, surged 19 percent to 204 pence after the companies said they are in talks about a merger that would expand services and raise efficiency.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.

Last Updated: April 29, 2008 12:17 EDT