European Movers: Credit Agricole, Finmeccanica, Corporate Express
ALLIANCE & LEICESTER Down GBP0.55 to GBP4.56... Profit in first 4M takes GBP192m hit - Says during first 4M of 2008, a GBP53m reduction in the fair value of certain treasury assets and a GBP139m impairment loss charge relating to certain treasury assets were recognised. Adds core operating profit excluding Treasury in first 4M of 2008 was flat y/y. Says core tier 1 capital ratio was 6.4% and a total capital ratio of 11.7% at end of March. Expects the margin to average around 1% for FY08. Anticipates Retail Banking impairment charge in 1H08 to be slightly lower than the GBP50m in 1H07. Adds net interest margin is on track to average around 1% during 2008.
TUI TRAVEL Down GBP0.07 to GBP2.52... 1H loss before tax narrows to GBP294m - Reports 1H loss before tax GBP294m, -13%; revenue GBP5.163bn, +9%. Plans second interim DPS of 2.8p. Says Summer trading remains strong, with UK Mainstream sales up 8%, while 21% less product is left to sell and strong pricing achieved over the last six weeks. Adds trading for Winter 2008/09 has started strongly with sales up 15% in the UK. Says discussions are ongoing with Lufthansa regarding a potential merger of Germanwings and TUIfly. Confident will meet expectations for year ended 30 September 2008. Is well hedged on fuel and fx exposures for all open seasons and is well placed to recover incremental costs in 2008 and 2009.
ENTERPRISE INNS Down GBP0.07 to GBP4.80... 1H PTP down 11%, trading tough - Posts 1H PTP pre-ex of GBP132m, -11%; adjusted EPS 19.3p, +5%; interim DPS 5.8p, +12%. Says the trading environment remains tough, with many costs rising and consumer leisure spending likely to remain under pressure for some time.
G4S Down GBP0.15 to GBP2.25... Confident outlook but placing weighs - Co. is placing up to 127m new shares, equivalent to approx 9.9% of Co.'s issued capital before the placing. Says YTD underlying performance is slightly ahead of overall management expectations, aided in part by a small benefit from recent euro strength. Adds overall organic growth improved strongly to 11% with around 9% in developed markets and around 17% in New Markets. Remains very confident in the performance of the group for 2008.
CREDIT AGRICOLE Down EUR 1.17 to EUR 19.56... 1Q net profit -66.4% y/y / EUR 5.9bn cap hike - Co. issues a statement in response to press reports confirming the board will tomorrow discuss a EUR 5.9bn capital increase project and sign off on the 1Q accounts, to be released on Thursday, at its scheduled meeting. Co. says 1Q net profit should come in at EUR 892m, down 66.4% y/y and well below consensus of EUR 1.301bn. Plans a restructuring of CIB following the EUR 1.205bn subprime related impact at Calyon. Les Echos had reported this morning that Marc Litzler will leave his post as head of Calyon, with current head of specialised financial services Patrick Valroff. Co.'s statement does not mention Mr Litzler. Ahead of 1Q results on 15 May, a Reuters poll looks for revenues of EUR 4.399bn, down 12% y/y; operating profit of EUR 1.27bn, down 38% y/y; and net profit of EUR 1.301bn, down 51% y/y. In broker news, Dresdner Kleinwort downgrades to reduce from hold. FranceSocGen ups target to EUR 20.20 from EUR 19.90, keeps hold.
CARREFOUR Up EUR 1.15 to EUR 46.25... Arnault wins board seat, Halley quits as Chairman - Co. announced lat night that Robert Halley will step down as Chairman to become an honorary president of Co. Amaury de Seze becomes the new Chairman. Co. has also appointed Bernard Arnault to the supervisory board. Arnault and Colony Capital (as Blue Capital) hold 10.7% of Co. Blue Capital now has four board members. Ahead of 1Q07 sales after the close, Deutsche Bank expects a soft performance from French Hypermarkets and good LFL sales growth elsewhere. For the quarter expects Group' sales growth of 7.5% to EUR 22.8bn. Keeps buy with EUR 61 target.
SOC GEN Down EUR 0.60 to EUR 70.90... 1Q earnings beat ests, but costs also higher Reports 1Q net att. profit of EUR 1.096bn; op profit EUR 1.774bn, -24.4%; op. income EUR 1.176bn, -45.
5%; net banking income EUR 5.679bn, -8.6% CER; op expenses EUR 3.905bn, +3.4%. Says the Tier One ratio (Basel I) stood at 7.9% at 31 March 2008.
DEUTSCHE TELEKOM Down EUR 0.28 to EUR 11.66... Sprint Nextel posts 1Q loss of US$505m versus US$211m in the red for the same period a year ago. Reminder: America's No. 3 mobile phone services provider is rumoured to be a potential acquisition target for Co. On the broker front, JP Morgan lifts target to EUR 13.50 from EUR 13.00, reiterating neutral.
CARL ZEISS MEDITEC Up EUR 1.26 to EUR 10.76... Interim net earnings provide cheer - Co. reported 1H EBIT of EUR 33.6m, up 1.8% y/y. Interim sales were 6.1% higher y/y at EUR 299.4m. Net income came in at EUR 24.5m, up from EUR 19.7m last time.
FINMECCANICA Down EUR 0.95 to EUR 20.41... Fitch affirms IDR at BBB - Fitch Ratings has affirmed Co.'s long-term issuer Default (IDR) and senior unsecured ratings at 'BBB' and short-term IDR at 'F2'. Says that the Outlook for the Long-term IDR remains Positive. Co. discloses 1Q net profit of EUR 126m, up 563% from 1Q07 following one-time gains. Explains the net profit includes a capital gain from the sale of shares in ST Micro, adding that excluding the gain, net profit came in at EUR 72m. Points that EBITA was up 13% at EUR 133m. Looking ahead, Co. has confirmed its 2008 outlook, with organic revenue growth between 6%-11% and adj EBITA increasing between 12%-19%. Co. has also announced that it will acquire a 11.1% stake in Eurotech for EUR 4.6/sh. Co. has signed a definitive merger agreement with DRS, in a deal worth US$5.20bn (EUR 3.40bn), inclusive of approximately US$1.2bn in net debt. Co. will pay US$81 per share in cash. According to press reports, EADS is also interested in US firm.
INTESA SANPAOLO Up EUR 0.01 to EUR 4.52... Discloses 1Q net profit of EUR 1.7bn - Co. unveils 1Q net profit of EUR 1.7bn while operating income came in at EUR 4.648bn. Says that income before tax from continuing operations was at EUR 1.917bn. Adds that Tier 1 came in at 6.7%. Looking ahead, expects 2008 revenue growth to pick up in 2008. Reuters reports citing traders that France's Credit Agricole could be selling shares in Co.
TISCALI Down EUR 0.06 to EUR 2.44... 1Q numbers miss ests, shortlists bidders - Announces 1Q consolidated revenues of EUR 276.40m, +43%; EBITDA EUR 48.30m, +92%; 74k new ADSL adds to 2.45m. Numbers short of expectations. Co. says it has analysed the expressions of interest in Co. both as a whole and for the operating companies in Italy and the UK, and has defined a shortlist. Chairman and CEO Mario Rosso will continue the discussion and negotiation of those expressions of interest. Carphone Warehouse is understood to have failed to make it on to a shortlist of second round bidders, according to The Times. The paper says Vodafone and BSkyB are thought to be among about six companies who will be given access to Co.'s books.
FORTIS Down EUR 0.18 to EUR 16.76... 1Q net profit short of expectations - coming in at EUR 808m versus EUR 1.09bn expected and EUR 1.17bn for the same quarter a year ago. Co. suffered write-downs on its structured credit portfolio - the net tax impact was EUR 380m. As a result banking and insurance net profit comes in lower y/y at EUR 721m and EUR 219m, respectively.
CORPORATE EXPRESS Up EUR 0.47 to EUR 8.08... Will consider Staples new offer - Co. says it will consider Staples revised proposal of EUR 8 per share for Co. Says the combined Boards will be available to engage in a dialogue with Staples and if appropriate will meet with Staples management to allow them to elaborate on the revised proposal.
STATOILHYDRO Up NOK3.50 to NOK197.30... 1Q EBIT above forecast - keeps 2008-12 production targets - Co. reports 1Q operating revenues of NOK159.176bn vs a Reuters forecast of NOK156.549bn, operating profit of NOK51.44bn vs NOK50.288bn, PTP of NOK55.338bn vs NOK53.463bn, net profit of NOK16.04bn vs NOK16.671bn and EPS of NOK5.01 vs NOK5.23. Co. says results were supported by the high oil & gas price, gains from sales of assets and currency, and lower write-down of inventories. Production cost per barrel of oil equivalent has increased significantly due cost pressures. For 2008-2012, keeps production targets of equity-based output of 1.9m-2.2m boed. Co. says it has made two oil discoveries at Oseberg, in the North Sea.
YARA Up NOK11.00 to NOK405.50... Enters j/v with Burrup to build TAN plant - Co. says its has entered a j/v with Burrup Holdings to build a 350k tonne technical ammonium nitrate (TAN) plant in Australia. Each will hold a 50% share.
REPSOL YPF Down EUR 0.18 to EUR 26.25... 1Q boosted by fx hedging, tax rate - Citi - Co. reports 1Q08 net profit up 36.5% y/y to EUR 1.212bn. Says net profit in US$ rose 61.9%. Adds operating profit rose 14.1% to EUR 1.606bn. Profit from Upstream rose 25.5% to EUR 576m; LNG rose 18.5% to EUR 32m; while Downstream profit fell 6.4% to EUR 482m. Adds result at YPF increased 11.3% to EUR 365m. Citigroup notes that results were flattered by EUR 165m of fx hedging gains and a low tax rate (25%) due to the YPF stake sale, without which earnings were closer to forecast.
SACYR-VALLEHERMOSO Up EUR 0.27 to EUR 22.90... 1Q EBITDA tops forecasts - Co. announces 1Q08 revenues of EUR 1.32bn, +4.2% y/y; EBITDA of EUR 256m, -12.5% y/y; net profit of EUR 205m, +1.0% y/y; and cash flow of EUR 296m, +6.8% y/y. Says net corporate debt has fallen 14.8% to EUR 1.687bn. Numbers are ahead of Ibersecurities' forecasts.
ABB LTD Up CHF1.00 to CHF33.40... Books US$170m power link contract - Co. says it has booked a US$170m contract in Ludvika from Kraftnat and Fingrid to deliver two HVDC converter stations to the power link in Fenno-Skan 2 in the Baltic Sea. Says the project is expected to be completed by the end of 2011.