European Movers: Alliance & Leicester, EDF, Heineken
ALLIANCE & LEICESTER
Down GBP0.37 to GBP4.92
FY results miss analyst estimates
Co. reports FY07 core operating profit of GBP417m, in line with guidance. Says conditions in the financial markets in 2H resulted in a reduction in the fair value and impairment of certain treasury investments (total GBP185m). Says core operating profit, excluding changes in the fair value and impairment of certain treasury investments, was GBP602m. Adds statutory PTP fell to GBP399m, incl a GBP10m loss from hedge ineffectiveness and GBP8m of redundancy costs; EPS 59.4p. Keeps final DPS at 36.5p. For FY08, expects total new customer lending volumes to be lower than in recent years, reflecting an emphasis on asset quality and revenues. Panmure Gordon cuts target to GBP6 from GBP6.55 following below consensus FY figures. Keeps hold. Cuts growth assumptions to 0% and value-added margin/value creation assumptions to 0% in valuation models.
Up GBP0.13 to GBP31.60
FY numbers in line, Tarmac sale delayed
Reports FY operating profit of US$10.1bn, u/l earnings US$5.8bn, +5%; u/l EPS US$4.40, +18%; final DPS US$0.86, +15%. Says the global economic outlook for 2008 is uncertain. Adds global commodity demand remains strong and seems likely to remain so throughout 2008. Says additional share buyback programme of US$4bn is 33% complete. Delays sale of Tarmac on credit crisis. Lehman lifts target to GBP37 from GBP36. Believes Co. is well positioned for the long-term positive fundamentals for the mining sector. Keeps equalweight.
ALLIED IRISH BANK
Up GBP0.52 to GBP13.84
FY results in line with forecasts
Posts FY basic EPS of EUR 2.18; adjusted basic EPS EUR 2.059; PTP from continuing operations EUR 2.508bn; op profit EUR 2.248bn. Raises DPS to EUR 0.79. Expects to deliver profitable growth in the more challenging operating environment for 2008.
Down EUR 6.95 to EUR 67.05
2008 EBITDA won't rise more than 3% - CFO
Co. reports FY07 sales of EUR 59.6bn and organic sales growth of 2.5%. Net income is at EUR 5.6bn, higher than expected. FY EBIT comes in at EUR 9.99bn, in line with expectations. EPS of EUR 3.08 is higher than expected. Co. reiterates outlook. Targets increased investments of EUR 10bn in 2008 vs EUR 7.5bn in 2007. However, 2008 EBITDA, 'won't progress more than 3%', Chief Financial Officer Daniel Camus reportedly said.
Up EUR 1.67 to EUR 49.33
Buys back 25m shares for EUR 1.165bn
Co. says it has bought back 25m shares at EUR 46.60 per share, for a total of EUR 1.165bn, from Carlo Tassara International.
Down EUR 1.93 to EUR 76.23
FY07 sales climb up 26% / ABB rumour
Reports net income of EUR 1.58bn, up 21% y/y; EBITA margin of 14.8% vs. 14.7% in 2006 and FCF of EUR 1.5bn, up 38% y/y. Confirms 2008 outlook: organic growth between 6% and 8% and
EBITA margin at 15%. Trading sources report renewed rumors are doing the rounds that ABB could bid for Co. The Swiss company has the means for such a deal and is thought to be on the lookout for an acquisition at some point. However, one source has indicated to MarketScope that such talk should be viewed cautiously as the CEO supposedly denied this yesterday.
Down EUR 0.30 to EUR 59.69
Could be interested in HSBC France – press
Co. CEO Baudouin Prottold reporters at the bank's FY07 results news conference that 'it would not be totally illogical' to look at French branches of HSBC if they come on the market, Reuters reports. Announces FY07 att net income of EUR 7.80bn, +7%; revenue EUR 31.037bn, +11.1; net EPS EUR 8.49, +5.7%; gross op income EUR 12.273bn, +12.8%. Says in 4Q, att net income came in at EUR 1.006bn, in line with consensus. To pay a div of EUR 3.35. Expects to continure to outperform competition in 2008. WestLB cuts target to EUR 86 from EUR 98, keeps buy, resulting from an increase of the risk premium. Nevertheless sees Co. as well positioned to weather the current turmoil.
Up EUR 0.86 to EUR 35.70
4Q results ahead of expectations
For 4Q07, Co. reports net revenues of US$2.569bn (+9%), EBIT of US$428m (+21%) and net income of US$197m (+30%).
At the AGM to be held on 20 May, shareholders will be asked to approve a dividend of EUR 0.54 per ordinary share, an increase of 15% y/y and EUR 0.56 per preference share, an increase of 14% y/y. For 2008, Co. expects to achieve revenues of more than US$10.4bn, + 7%. Net income is expected to be between US$805m and US$825m in 2008, an increase of 12% to 15%.
Down EUR 3.12 to EUR 115.15
FY07 EBITA beats estimates
Co. reports FY07 EBITA up 31% to EUR 1.346bn, higher than expected. Sales rose to EUR 2.185bn, slightly below estimates. Proposes to increase the dividend from EUR 1.70 to EUR 2.10 per share.
Up EUR 0.01 to EUR 0.66
TAR decision expected today
An administrative court in Lazio province is expected today whether to annul Air France-KLM's right to exclusive talks to acquire Co. The regional court is reviewing a lawsuit filed last month by Air One, which asked the two airlines to hold off on any actions until today's hearing.
Up EUR 0.04 to EUR 2.65
Reports FY07 net profit at EUR 95.6m
Co. has announced to have closed 2007 with consolidated net profit at EUR 95.6m and revenues of EUR 1.0982bn, down 0.4% y/y. Explains that circulation, including optional products fell 11.3% to EUR 405.1m while advertising was up 6.7% to EUR 657.1m. Reports EBITDA of EUR 223.5, up 9.3%. A shareholders' Meeting has been scheduled for 17 April to distribute a gross dividend of EUR 0.17/sh, +6% y/y.
Down EUR 2.34 to EUR 36.53
Rumor SABMiller joins S&N hunt
SABMiller is plotting an alternative takeover offer for S&N that will value the British brewer at around GBP8.50/sh, or GBP8bn, FT Alphaville says quoting 'sources with demonstrable form'. A SABMiller spokesperson refuses to comment on market speculation. S&N, of course, has already agreed terms with Carlsberg and Co., who together have offered cash terms worth GBP7.8bn, the website writes. Reports a 5.5% rise in FY07 group beer volumes. Says revenues rose 6.2% to EUR 12.564bn; EBIT fell 16.6% to EUR 1.528bn and net profit (beia) rose 17.6% to EUR 1.119bn. However, because of the uncertainties in the market it is not able to give an exact outlook.
Up EUR 0.20 to EUR 21.96.
Subprime worries overdone
Co. reports 4Q underlying profit of EUR 2.62bn, higher than expected. 4Q net income is at EUR 2.48bn vs an expected EUR 2.38bn. Reports EUR 194m pre-tax loss on subprime and related issues in 4Q. This is less than market had expected. Says no impairment on Alt-A RMBS. Says EUR 751m negative revaluation on subprime, Alt-A, CDOs through shareholders' equity in 4Q.
Up SEK6.75 to SEK144.75
4Q op. profit ahead - sees improvement in 2008
4Q operating profit comes in at SEK1.06bn vs SEK1.04bn forecast, on sales of SEK3.53bn vs SEK3.51bn. 4Q PTP amounts SEK976m vs SEK956m, 4Q wet snuff margin 45% vs 46.7%. Proposes dividend of SEK3.50/sh vs SEK3.29/sh expected. Guides for sustained market share and volume increase in 2008 for snuff in the US. Sees positive development for 2008 with sales and operating profit improving vs 2007.
Down NOK0.34 to NOK1.86
Will make significant loss from operations
4Q07 will show 'a significant loss from ordinary operations', Co. says in a statement ahead of results release on 27 February. The new board elected at the EGM on 10 December 2007 has discovered that the situation was worse than expected and a considerable write-down on receivables in subsidiaries along with a write-down of immaterial assets will be completed in 4Q08. As a result Co. will reduce operating expenses and cut 80 jobs.
Down EUR 0.10 to EUR 10.17
Posts FY net profit ahead of forecasts
Co. unveils FY07 EBITDA up 42.4% y/y to EUR 5.54bn with net profit up 41.8% to EUR 2.35bn. Numbers are ahead of Reuters consensus expectations. Co. says Scottish Power contributed EUR 1.352bn to EBITDA.
Down EUR 0.06 to EUR 2.38
Rival offer for Spanair emerges
Gadair and a Portuguese airline have made a joint offer for SAS's Spanair, which Co. is bidding for alongside Gestair, writes Negocio. The article adds that there are concerns in Catalonia that Co.'s bid may have negative consequences for Barcelona's El Prat airport.
Down CHF27.80 to CHF102.00
Speculation Focus Capital selling
According to traders, following yesterday's placing of Forbo shares, market talk is now that Focus Capital was the seller in Forbo. The market might be believing that further selling could occur in the other holdings of Focus Capital, including Co. and Hiestand.
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