| CATEGORY: MARKET REPORT - EUROPE SECTOR: AERONAUTICS AND DEFENCE |
European midday: Shares move lower |
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Tue 09 Mar 2010
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LONDON (SHARECAST) - Europes leading exchanges have continued to drop with EADS and banks among the worst performers.
Airbus parent EADS and its US partner Northrop Grumman have pulled out of bidding for a $35bn contract to build refuelling tankers for the US air force. The deal would have secured thousands of manufacturing jobs in the UK, France, Germany and Spain.
Rival Boeing, the world's second-biggest aerospace company, is now expected to pick up the work. The news came as EADS posted a 763m net loss for last year compared with a profit of 1.57bn in 2008. Revenues fell slightly to 42.8bn from 43.3bn.
Delays on the A400M military transport aircraft, financial charges on its A380 superjumbo and adverse currency fluctuations contributed to the loss. EADS also said that 2010 may be "volatile". The groups shares are down more than 5% in Paris.
Banks are also among the main fallers. Societe Generale, Credit Agricole, BNP Paribas, Commerzbank, Deutsche Bank and UBS are all among the main fallers.
Across the markets, the Dax in Frankfurt has dropped 38 points to 5,838, the Cac in Paris is 24 points weaker at 3,895 and the Swiss market is down 10 points at 6,841.
German mail company Deutsche Post saw fourth-quarter net losses narrowed largely thanks to its cost savings program. Net losses fell to 283m compared with a loss of 3.18bn in the same period last year on revenue down 11.6% to 12.39bn.
For 2010, the group expects underlying earnings before interest and taxes of between 1.6bn and 1.9bn. We are optimistic about the future, even though many uncertainties remain about the strength of the economic recovery as well as about political and regulatory issues, said chief executive Frank Appel.
Aer Lingus said operating losses quadrupled in 2009, though the Irish airline made a profit in the second half of the year. Operating losses, before exceptional items, widened to 81m from 20m last year, while revenues declined 11% to 1,205.7m.
Elsewhere, health care giant Sanofi-Aventis and US peer Merck have agreed to form a 50-50 animal-health joint venture.
CAC 40 - Risers
GDF Suez (GSZ) 27.75 +1.02%
Pernod Ricard (RI) 59.14 +0.90%
EDF (EDF) 38.19 +0.73%
Sanofi-Aventis (SAN) 56.11 +0.65%
Suez Environnement Company (SEV) 16.83 +0.30%
Total (FP) 42.38 +0.27%
Vivendi (VIV) 19.30 +0.18%
Essilor International (EI) 45.94 +0.10%
CAC 40 - Fallers
EADS (EAD) 15.08 -5.04%
Societe Generale (GLE) 42.88 -3.22%
Credit Agricole (ACA) 11.43 -2.64%
Lafarge (LG) 51.52 -2.48%
Renault (RNO) 32.31 -2.03%
BNP Paribas (BNP) 56.09 -1.96%
ArcelorMittal SA (MT) 30.51 -1.77%
Dexia (DEXB) 4.22 -1.63%
LVMH (MC) 84.63 -1.48%
Saint Gobain (SGO) 35.79 -1.39%
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