Germany Daybook: Deutsche Telekom Posts Net Loss on Writedown

Deutsche Telekom AG, Europe’s largest telecommunications company, said fourth-quarter operating profit excluding some items fell 10 percent, depressed by eastern and southern European operations.

Adjusted earnings before interest, taxes, depreciation and amortization dropped to 4.55 billion euros ($6.3 billion) from 5.07 billion euros a year earlier, the Bonn-based company said in a statement today. Profit missed the 4.7 billion-euro average estimate of 19 analysts compiled by Bloomberg. Deutsche Telekom had a fourth-quarter net loss of 582 million euros, weighed down by a writedown on Greek and Romanian units.

EQUITIES: *Deutsche Bank (DBK GY) plans to sell its Frankfurt headquarters to private investors via a fund held by its DWS unit, Financial Times Deutschland reported, citing an unidentified person familiar with the process. *Deutsche Euroshop (DEQ GY) proposed to raise its 2010 dividend to 1.10 euro per share from 1.05 euro. The company said consolidated profit for the year probably rose to 80.8 million euros from 34.4 million euros. *Fuchs Petrolub (FPE GY) proposed a 59 percent increase in the annual dividend on its preferred shares and a 61 percent increase in the ordinary share payout after “a strong increase in revenues and profits in 2010.” *Henkel (HEN3 GY) was downgraded to “hold” from “buy” at Independent Research GmbH. *GfK Group forecast an increase in sales of 5 percent to 6 percent this year and an adjusted operating profit margin of 14.3 percent after growth in 2010.

WHAT TO WATCH: Germany’s GDL train drivers union said it will ask employees to hold a nationwide strike between 8:30 a.m. and 11:30 a.m. to call for a minimum wage across the industry. *German Foreign Minister Guido Westerwelle and Italian Foreign Minister Franco Frattini discuss the Middle East situation at the Foreign Ministry in Berlin, scheduled for 8 a.m. CET. *Six German states release consumer price inflation data for February, starting at 9:00 a.m. *European Central Bank releases euro-zone M3 money supply data for January at 10 a.m. *German Foreign Minister Guido Westerwelle and Foreign Minister Taieb Fassi Fihri of Morocco brief news media in Berlin on unrest in North Africa and the Middle East, scheduled for 10:45 a.m. *European Central Bank Governing Council member Ewald Nowotny speaks in Vienna, scheduled for 1 p.m. European Central Bank Vice President Vitor Constancio speaks at monetary policy forum in New York, at 1:30 p.m. New York time.

MARKETS: * The DAX Index dropped 0.9% to 7,130.50. *The Stoxx Europe 600 Index lost 0.6% to 280.56. *MSCI Asia-Pacific Index gained 0.9% to 136.53 as of 7:28 a.m. in Frankfurt. *German 10-year bond yield at 3.129%. *Euro -- U.S. $1.382.

BLOOMBERG TV: *11:30 a.m.: Deutsche Telekom CEO Rene Obermann

To contact the reporter on this story: Cornelius Rahn in Frankfurt at crahn2@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong in Berlin at kwong11@bloomberg.net

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