European Movers: Persimmon, Michelin, Siemens
PERSIMMON Up GBP0.08 to GBP2.36... Brokers cut numbers Dresdner lowers target to GBP1.73 from GBP5.08; rates sell. Goldman cuts target to GBP2.29 from GBP3.093. Keeps sell recommendation. Co. says poorer market conditions have continued which will be reflected in 1H results, with legal completions down 31% at an average selling price of c. GBP181,500 (vs GBP189,255 in 1H07). Says total sales revenue was GBP1bn, down 34% y/y; sees u/l op margin (before goodwill impairment and exceptional costs) at 14% vs 20.8% in 1H07. To cut 1,100 jobs in a bid to save GBP45m pa. Does not expect to announce any significant write down of land values.
BANK OF IRELAND Down EUR 0.55 to EUR 4.48... Economic situation continues to affect earnings - Co. says the slowing economic growth in its main markets together with global market dislocation continue to adversely impact earnings.
MICHELIN Down EUR 1.55 to EUR 46.24... SocGen downgrades to sell from hold and cuts target to EUR 39 from EUR 56. Fears that after four years of growth, the European market for new truck tires will probably slow as of 2009 given the end of an equipment cycle as well as the clear deterioration in the economic climate. Adds the beginning of a recovery in the US is not likely to offset this. Although the comparison base becomes more favourable in the coming months, thinks that guidance for a flat market over 12 months will probably not be reached.
CLARINS Up EUR 11.63 to EUR 55.35... SocGen recommends accepting offer /Stock soars - Co. shares are trading today, having been suspended since 26 June. The controlling Courtin-Clarins family have made a EUR 55.50/sh offer to minorities holding some 30% of Co. The stock has shot higher, closing in on the EUR 55.50 offer price. SocGen recommends the offer, downgrading to sell and lifting its target to the EUR 55.50 offer price from its previous EUR 40.00.
SIEMENS Down EUR 1.14 to EUR 69.67... Set to cut jobs / Indian order in focus - Co. is set to axe some 16,750 jobs worldwide. 12,600, mainly administrative ones, are to be chopped by 2010, while another 4,150 are to go as part of Co.'s restructuring programme, with no timeframe attached. In other news: Co. has won an order worth some 3bn rupees from Dehli International Airport for a baggage handling system.
KLOECKNER Up EUR 0.88 to EUR 32.09... Reports prelim 2Q EBITDA of EUR 200m - higher than expected - thanks to successful implementation of price increases. Co. forecasts full-year core earnings topping EUR 480m.