Jan. 24 (Bloomberg) -- European stocks declined, led by technology companies after reports from Royal Philips Electronics NV's flat-panel venture and Infineon Technologies AG stoked concern corporate profit growth may wane.

Airlines including Ryanair Holdings Plc fell as oil, which is used to make jet fuel, rose for a second day in New York.

``Investors are getting nervous about earnings growth, especially when you hear companies coming out with very cautious forecasts,'' said Rene Clerix, who oversees $7.6 billion as head of European equities at Dexia Asset Management in Brussels. The price of oil ``is adding to the nervousness.'' He didn't say if he is buying or selling shares.

The Dow Jones Stoxx 50 Index fell 0.4 percent to 2768.05 as of 10:49 a.m. in London. The Stoxx 600 lost 0.5 percent, as 16 of the benchmark's 18 industry groups dropped. The Euro Stoxx 50, a measure for the 12 countries using the euro, slipped 0.6 percent.

Benchmark indexes declined in all 18 Western European markets except Austria and Greece. France's CAC 40 Index dropped 0.7 percent, the U.K.'s FTSE 100 Index slipped 0.4 percent. Germany's DAX Index lost 1.1 percent. March futures on the Euro Stoxx 50 dropped 0.4 percent.

Growth in earnings per share for Stoxx 600 companies will shrink to an average of 10.5 percent this year from 27 percent in 2004, according to FactSet JCF Group, a research company.

Philips, Infineon

Philips fell 1.2 percent to 18.48 euros. LG.Philips LCD Co., the venture between South Korea's LG Electronics Inc. and Philips, said fourth-quarter profit plunged on a decline in prices of liquid-crystal displays used in televisions.

Infineon, Europe's second-largest semiconductor maker, dropped 2.8 percent to 6.98 euros. The Munich-based company forecast earnings and sales will decline in the current quarter, citing pressure to reduce prices and lower demand as customers cut inventory. Fiscal first quarter net income quadrupled to 142 million euros ($185 million), or 19 cents a share.

The Technology Index led declines on the Stoxx 600, losing 1.2 percent.

Ryanair, Europe's biggest low-cost airline, declined 1.4 percent to 5.70 euros. Iberia Lineas Aereas de Espana SA fell 2 percent to 2.48 euros.

Crude oil for March delivery rose as much as 1.4 percent to $49.23 in after-hours electronic trading on the New York Mercantile Exchange. The March contract rose 2.6 percent to $48.53 a barrel on Jan. 21, the highest close since Nov. 30.

BP Plc, Europe's largest oil company, added 0.9 percent to 516.5 pence. Shell Transport & Trading Co., which owns 40 percent of Royal Dutch/Shell Group, Europe's second-largest oil company, rose 0.9 percent to 460.25 pence.

France Telecom, Equant

France Telecom SA, Europe's second-largest phone company, fell 1.8 percent to 22.98 euros. Europe's second-largest phone company offered 564 million euros ($737 million) to buy the 46 percent of Equant NV it doesn't already own. The offer is worth 4.20 euros a share, about 17 percent higher than Equant's closing share price on Jan. 21 of 3.60 euros. Equant shares added 18 percent to 4.25 euros.

Skanska AB, the world's second-biggest construction company, dropped 5.3 percent to 80.5 kronor. The company said it will take a 685-million-kronor charge in the fourth quarter related to a contract in Britain. The Stockholm-based company said preliminary 2004 operating income was about 3.8 billion kronor ($547 million).

Miners Gain

Rio Tinto Group and BHP Billiton Plc advanced. The two iron- ore miners may more than double prices of the raw material to Japan to narrow the gap with Brazilian shipment prices, Macquarie Bank Ltd. said.

Shares of Rio Tinto, the world's second-largest iron ore exporter, added 2.2 percent, to 1,656 pence. BHP Billiton, the third biggest, advanced 1.3 percent to 645.5 euros.

Brazil's Cia. Vale do Rio Doce, the world's biggest iron-ore producer, said it's seeking to boost prices for the commodity by as much as 90 percent.

Carrefour SA climbed 2.3 percent to 38.61 euros. Europe's biggest retailer was rated ``overweight'' in new coverage by Morgan Stanley analysts, who gave the stock a share price forecast of 43 euros.

Invensys Plc, the U.K. engineer that has refinanced debts of 2.7 billion pounds ($5 billion), climbed 5.9 percent to 18 pence after saying it expects to achieve its targets for the year after costs to recall faulty gas valves at its controls business in the third quarter.

Shire Pharmaceuticals

Shire Pharmaceuticals Group Plc, the U.K.'s third-largest drugmaker, fell 2.4 percent to 622 pence. Johnson & Johnson said at the end of last week that Canadian and European regulators are reviewing the safety of its Reminyl Alzheimer's drug after studies of a potential new use showed a higher death rate among patients taking it.

The product, developed with Shire from daffodil bulbs, is cleared for sale in 69 countries.

HVB Group, Germany's second-largest bank, fell 2.3 percent to 17.20 euros on concern the company may be forced to raise money from shareholders to preserve its credit rating after taking a 2.5 billion-euro writedown on real-estate assets.

U.S. benchmarks fell after European markets closed last week, with the Dow Jones Industrial Average erasing last year's gain. The Dow average retreated 0.8 percent to 10,392.99. The Standard & Poor's 500 Index fell 0.6 percent to 1167.87. The Nasdaq Composite Index declined 0.6 percent to 2034.27.

Asian stocks gained, with the Morgan Stanley Capital International Asia-Pacific Index of more than 900 stocks in the region adding 0.5 percent. The Nikkei 225 Stock Average gained 0.5 percent.

To contact the reporter on this story: Margo Towie in Brussels at mtowie@bloomberg.net.

Last Updated: January 24, 2005 06:00 EST