Oct. 27 (Bloomberg) -- Germany's DAX Index declined for a second session in three, paced by Adidas-Salomon AG. U.S. competitor K-Swiss Inc. said profit in the fourth quarter may be lower than some analysts had expected.

The DAX lost 61.84, or 1.3 percent, to 4838.95 as of 3:22 p.m. in Frankfurt. DAX December futures slid 0.9 percent to 4853. The HDAX Index of the country's 110 biggest companies shed 1.3 percent.

Adidas, the world's second-largest sporting-goods maker, fell 2.75 euros, or 2 percent, to 137.40 euros. K-Swiss, a U.S.- based athletic-shoe maker, said it sees fourth-quarter earnings per share of 22 cents to 26 cents. Analysts had expected profit of 28 cents, according to a survey by Thomson Financial.

The K-Swiss statement ``depresses sentiment in the sector,'' said Uwe Weinreich, an analyst at HVB Group in Munich, who added K-Swiss is the second company in the sector to report disappointing earnings after Reebok International Ltd. said on Oct. 24 sales fell the most in 14 quarters.

Adidas makes about a third of sales in North America.

HVB, the German bank being taken over by UniCredito Italiano SpA said supervisory board Chairman Albrecht Schmidt has resigned. Commerzbank AG, Germany's third-biggest publicly traded bank, dropped 1.8 percent to 21.14 euros.

The following stocks rose or fell in Germany. Stock symbols are in parenthesis.

Funkwerk AG (FEW GY), a maker of phone systems, used in cars and railways, fell 2.21 euros, or 8.1 percent, to 25.19 euros. Nine-month profit dropped 44 percent to 6.4 million euros ($7.8 million) because of some project delays and costs of reorganizing the company, the company said. Sales dropped to 174.1 million euros from 189.2 million euros.

IDS Scheer AG (IDS GY), the software consultant, fell 5 cents, or 0.3 percent, to 15.32 euros. IDS said third-quarter net income rose 73 percent to 4.4 million euros as the company made acquisitions outside its home market. Analysts surveyed by Bloomberg News expected 4.6 million euros.

Deutsche Lufthansa AG (LHA GY), Europe's second-largest airline, dropped 28 cents, or 2.5 percent, to 11.06 euros. Crude oil for December delivery rose as much as 1.4 percent to $61.50 a barrel on the New York Mercantile Exchange. Oil has more than doubled from two years ago. Fuel costs account for as much as 14 percent of total costs for airlines according to analysts at Credit Suisse First Boston.

Deutsche Telekom AG (DTE GY), Europe's largest phone company, dropped 23 cents, or 1.5 percent, to 14.69 euros. France Telecom SA, Europe's second-biggest phone company, cut its annual sales growth forecast on falling revenue from the Polish fixed- line business and corporate services division.

MorphoSys AG (MOR GY), the supplier of antibodies, fell 1.03 euros, or 2.6 percent, to 38.52 euros. The company said its third-quarter net income dropped 9 percent to 2 million euros on higher costs to test its experimental cancer, inflammation and burn therapies in pre-clinical studies.

Villeroy & Boch AG (VIB3 GY), a maker of floor tiles and porcelain, shed 46 cents, or 3.7 percent, to 12 euros. The company said third-quarter net income fell by more than half to 1.3 million euros because of lackluster spending in its home market. Sales fell 5.5 percent to 216.6 million.

To contact the reporter on this story: Chris Fournier in Frankfurt at Cfournier3@bloomberg.net

Last Updated: October 27, 2005 09:26 EDT