Which Manufacturers Are Leading as Europe Returns to (Anemic) Growth?

July 24 (Bloomberg) -- On today's "Insight & Action," Adam Johnson looks at the European economy on Bloomberg Television's "Street Smart." (Source: Bloomberg)

European manufacturing has expanded for the first time in two years -- evidence that European Central Bank President Mario Draghi was right two weeks ago when he predicted export growth would "benefit from a gradual recovery in global demand."

A manufacturing index based on a survey of purchasing managers rose to 50.1 from 48.8 in June, London-based Markit Economics said today. That exceeded the median estimate of 49.1 in a Bloomberg News survey of 39 economists. A reading above 50 implies growth, below 50 indicates contraction.

Europe's rebound above 50 provides the first indication we may see an end to the region's six consecutive quarters of contraction -- the longest since WWII.

Still, a score of 50.1 means Europe's manufacturers on average have barely crossed the breakeven threshold. So, in order to identify the leaders, I scoured the Euro Stoxx 600 Index for manufacturers growing earnings this year by at least 15 percent, and found only 24 companies. I showed six of these on-air:

For the benefit of blog readers, here are the other 18 companies. They all trade in Europe, so the tickers include country codes. The complete list is: Anglo American Plc (AAL LN), Abertis Infraestructuras SA (ABE SM), Ashtead Group Plc (AHT LN), Andritz AG (ANDR AV), Berkeley Group Holdings Plc (BKG LN), Bollore SA (BOL FP), Cie Financiere Richemont SA (CFR VX), CGG (CGG FP), Davide Campari-Milano SpA (CPR IM), DCC Plc (DCC LN), DKSH Holding AG (DKSH SW), Essentra Plc (ESNT LN), Glencore Xstrata Plc (GLEN LN), Etablissements Maurel et Prom (MAU FP), Marine Harvest ASA (MHG NO), Melrose Industries Plc (MRO LN), Premier Oil Plc (PMO LN), Pandora AS (PNDORA DC), Remy Cointreau SA (RCO FP), Rolls-Royce Holdings Plc (RR/ LN), SABMiller Plc (SAB LN), DS Smith Plc (SMDS LN), Technip SA (TEC FP), Wirecard AG (WDI GR). The group of 24 is beating the S&P 500 this year.

Note that Campari, Remy Cointreau and SABMiller all made the cut, suggesting some products are withstanding austerity.

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