German Stocks Advance as Henkel, Deutsche Telekom Beat

German stocks advanced to a record high as Deutsche Telekom AG (DTE) and Henkel AG reported better-than- forecast first-quarter earnings.

Deutsche Telekom climbed to its highest price in seven months after posting quarterly profit that fell less than estimated. Henkel, the maker of Dial soap and Loctite glue, rose the most since September 2011 after saying first-quarter profit increased 8.9 percent.

The benchmark DAX Index (DAX) added 0.7 percent to 8,237.2 at 4:03 p.m. in Frankfurt. The gauge rallied yesterday as companies posted earnings that beat forecasts and factory orders in Europe’s largest economy unexpectedly increased. The measure has risen 8.2 percent this year as central banks maintained stimulus measures. The broader HDAX Index gained 0.6 percent today.

“The strong liquidity tailwind is giving the markets enough impulses to continue the current trend despite any fundamental doubts,” Roger Peeters, chief executive officer at Close Brothers Seydler Research in Frankfurt, wrote in a note.

The volume of shares changing hands in companies on the DAX was 8.8 percent greater than the average of the past 30 days, according to data compiled by Bloomberg.

German industrial output unexpectedly rose for a second month in March in a further sign that Europe’s largest economy is returning to growth.

Production increased 1.2 percent from February, when it gained 0.6 percent, the Economy Ministry in Berlin said today. Economists forecast a 0.1 percent decline, according to the median of 40 estimates in a Bloomberg News survey.

Deutsche Telekom

Deutsche Telekom AG advanced 5.4 percent to 9.63 euros. Germany’s largest phone company reported first-quarter profit before some items fell 4.3 percent to 4.29 billion euros ($5.62 billion), compared with the 4.24 billion-euro average forecast of analysts compiled by Bloomberg.

Henkel climbed 4.7 percent to 75.12 euros after saying first-quarter adjusted earnings before interest and taxes rose to 600 million euros from 551 million euros a year earlier. That beat the 582.1 million-euro average estimate of seven analysts compiled by Bloomberg.

Kuka AG climbed 6 percent to 36.40 euros, its highest price since at least January 1996. The manufacturer of production (GRIPIMOM) machinery and equipment reported first-quarter revenue of 436 million euros, beating analysts’ estimates for 431 million euros.

Tom Tailor

Tom Tailor Holding AG rose 4.8 percent to 17.48 euros. The clothing company reiterated its full-year 2013 revenue forecast, even as it reported a first-quarter adjusted net loss of 3.8 million euros.

Evonik Industries AG (EVK), the chemical maker that listed shares in Frankfurt two weeks ago, slipped 1.7 percent to 31.45 euros after it said first-quarter profit fell 10 percent. Adjusted earnings before interest, tax, depreciation and amortization dropped to 589 million euros from 656 million euros. Sales fell 4 percent to 3.26 billion euros in the quarter.

Commerzbank AG, Germany’s second-largest lender, dropped 4.4 percent to 10.61 euros, while Deutsche Bank AG, the biggest, declined 0.8 percent to 36.84 euros. A gauge of bank stocks posted the second-worst performance of the 19 industry groups on the Stoxx Europe 600 Index.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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