STOCKS NEWS EUROPE-Report on profit drop hits VW shares

STOCKS NEWS Reuters Results diary
Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]

11:42GMT 18March2009-Report on 2009 profit drop hits VW shares
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Shares in Volkswagen slip 2 percent, making them one of the top
decliners among German largecaps <.GDAXI>, after German magazine Capital reports
profits at Europe's biggest carmaker could fall up to 90 percent this year.
The report cites internal budget documents as saying underlying operating
profit could drop to 1.1 billion euros from 6.3 billion in 2008 and that a net
profit of 500 million was possible, down from nearly 4.7 billion last year.
"The report is putting pressure on the shares," says a Frankfurt-based
trader.
Volkswagen says the report "is without substance" and that it is impossible
to give a reliable forecast at this stage.
Reuters Messaging rm://jan.schwartz.reuters.com@reuters.net
tyler.sitte.thomsonreuters.com@reuters.net

11:34GMT 18March2009-Prostrakan higher after results
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Shares in Prostrakan gain over 3 percent after the specialty
pharmaceutical company posts full-year results, with revenue up 23 percent from
the previous year.
Morgan Stanley, which keeps its "overweight" recommendation on the stock,
highlights in a note that revenue, at 56.1 million pounds, came in 3 percent
ahead of consensus estimates of 54.4 million pounds, with product launches
progressing well.
"We view Prostrakan as an emerging specialty pharmaceutical company rather
than a biotech, and believe that the risk/reward is being significantly
underestimated," says the broker.
"We are buyers ahead of multiple product launches over the next 12-18
months," it says.
For more double click on [nLI403043]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net

10:55GMT 18March2009-Alkane Energy gains after "excellent" results
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Shares in Alkane Energy gain 11.9 percent after the renewable
energy company unveils a 21.5 percent increase in full-year revenues to 5.19
million pounds, with pretax profit up by 128 percent to 1.95 million pounds.
The company, which converts damaging methane emissions from abandoned coal
mines into electricity, has 20 megawats of capacity equivalent in operation, and
hopes to increase this to 50 megawats.
Broker Ambrian describes the results as excellent, and re-initiates coverage
with a "speculative buy" recommendation.
"We feel that the company is well positioned to meet its aggressive growth
targets," it says in a note to clients.
For more double click on [nRn1R0222P]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net

10:47GMT 18 March 2009-National Bank of Greece up after results
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Shares in National Bank of Greece (NBG) gain 3.1 percent after
Greece's largest lender posts 2008 earnings in line with market expectations.
After the market close on Tuesday, NBG reported a small 5 percent drop in
profit to 1.54 billion euros in 2008 due to higher provisions and slower lending
growth.
"A solid set of results in the midst of unprecedented, dismal operating
conditions," HSBC Securities said in a market report. "NBG's results confirm our
view of the bank being the
sector's strongest fundamental play."
NBG's fall in profitability was the smallest among major
Greek banks which are faced with a deteriorating macroeconomic
enviroment in southeast Europe where they have expanded.
Reuters Messaging:lefteris.papadimas.reuters.com@reuters.net

10:47GMT 18 March 2009-National Bank of Greece up after
results

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Shares in National Bank of Greece (NBG) gain 3.1
percent after Greece's largest lender posts 2008 earnings in
line with market expectations.
After the market close on Tuesday, NBG reported a small 5
percent drop in profit to 1.54 billion euros in 2008 due to
higher provisions and slower lending growth.
"A solid set of results in the midst of unprecedented,
dismal operating conditions," HSBC Securities said in a market
report. "NBG's results confirm our view of the bank being the
sector's strongest fundamental play."
NBG's fall in profitability was the smallest among major
Greek banks which are faced with a deteriorating macroeconomic
enviroment in southeast Europe where they have expanded.
Reuters Messaging:lefteris.papadimas.reuters.com@reuters.net

10:39GMT 18mar2009-Plastic Omnium rises; Natixis upgrades
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Shares in Plastic Omnium rise as much as 14
percent as Natixis raises its rating on the stock to
"accumulate" from "reduce" and increase its price target to 8
euros from 6 euros.
The broker says the French car equipment supplier's
cost-cutting plan is bearing fruit and will enable the group to
weather the economic downturn.
"Although visibility clearly remains limited, the success of
the (cost-cutting) plan in 2009 should enable it to get through
this crisis and emerge on a much more solid basis than before
the crisis," Natixis writes.
Reuters Messaging rm://james.regan.reuters.com@reuters.net

10:37GMT 18March2009-Mediaset up as results seen as positive
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Shares in Italy's biggest private broadcaster Mediaset
gain 3.3
percent despite reporting a lower profit for 2008, announcing a
dividend cut and warning of another profit slump this year due
to the economic downturn, as analysts say the numbers were not
as bad as feared.
Stock is outperforming the DJ Stoxx media index <.SXMP>,
which is up 0.3 percent.
"Mediaset's figures gave some positive surprises," a report
by a Mediobanca analyst says. "The dividend is higher than
forecasts."
Mediaset slides for presentation to analysts on the 2008 say
it wants to expand the activities of its Endemol unit into
emerging markets.
Reuters Messaging
rm://stefano.rebaudo.reuters.com@reuters.net

10:27GMT 18Mar2009-Hays down; Deutsche Bank cuts target
price

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Shares in Hays fall 6.2 percent after Deutsche Bank
cuts its 2009 price target for Europe's biggest recruitment firm
by 7.3 percent.
Analysts at the German bank make the cut, to 63 pence from
68 pence because they expect Hays' gross margins to come under
"considerable pressure" due to expected lower volumes in the
year to end-June 2009.
Increased bad debt charges and continued falling demand for
permanent placements are also expected to weigh heavily on
profitability, analysts add.
Reuters messaging rm://rhysl.jones.reuters.com@reuters.net

10:24GMT 18Mar2009-Rio slides after Australian senate review
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Miner Rio Tinto falls 3.4 percent after Australia's
Senate votes to launch a review into foreign investment, casting
a shadow over Rio's planned $19.5 billion tie-up with Chinese
state-owned Chinalco. [nSYD288712]
Rio is the biggest loser among the FTSE 100 <.FTSE> and
underperforms a 1.0
percent rise in the UK mining index <.FTNMX1770> after the shares tumbled as
much as 10 percent in Australia.
"In our view, the reaction from Australia is overdone and this response to
legislation risk may prove to be a red herring as we already expect the
RIO/Chalco deal to require some form of modification," analyst Michael Rawlinson
at Liberum Capital says in a note.
Reuters Messaging: eric.onstad.reuters.com@reuters.net

10:12GMT 18Mar2009-Helvetia outperforms after good results, upgrade
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Shares in Swiss insurer Helvetia jump more than 10 percent, against
a 2.4 percent rise in DJ Stoxx European insurance index <.SXIP>, after good
results on Tuesday and an upgrade by Kepler Capital Markets.
"The good results and recovery of markets in general and financial stocks in
particular are continuing to drive up Helvetia," a trader says.
"The company started 2009 well and should be able to grow
above the market," says Kepler Capital Market analyst Fabrizio Croce, advising
investors to buy Helvetia shares aggressively.
Reuters Messaging rm://jason.rhodes.reuters.com@reuters.net

10:00GMT 18Mar2009-Carbone Lorraine up as seen resilient
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Shares in Carbone Lorraine rise as much as 17 percent after the
French graphite and electrical components maker posts forecast-beating results
and analysts say the group should be resilient during the economic downturn.
"We believe that Carbone Lorraine benefits from a strong backlog in
(products) for the renewable energies and in anti-corrosion equipment for the
full year," Merrill Lynch analyst Caroline Cohen says in a note. "Cost-cutting
measures should help to maintain profitability."
For more double click on [nLI272467]
Reuters Messaging rm://james.regan.reuters.com@reuters.net

09:53GMT 18March2009-Royal Dutch Shell weak; Citi downgrades
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Shares in Royal Dutch Shell fall 1.2 percent, extending Tuesday's
post-strategy update decline, with Citigroup downgrading the oil major to "hold"
from "buy".
Citigroup says, for the long term investor, the underlying investment thesis
for Royal Dutch Shell remains essentially unchanged.
The broker says that predicated on 2009-12 project delivery and further
maturation of a mega-project heavy resource base, the company offers a level of
visibility on its long-term growth options which others in the sector may be
seen to lack.
However, Citigropup says, Royal Dutch Shell's performance over the next 12
months will be constrained by relatively limited visibility on the medium-term
interplay between free cash generation and production growth.
The broker says it has left its valuation and estimates unchanged for Royal
Dutch Shell, but with relative metrics not compelling and just around 5 percent
upside to its target price, it sees more attractive opportunities elsewhere in
the sector.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net

09:52GMT 18March2009-Chemring gains after trading update
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Shares in military goods maker Chemring add 3.7 percent after a
trading update covering the first four months to February shows group revenues
and operating profits in excess of 50 percent higher than for the same period in
2008.
Numis Securities points out, in a note, that Chemring is currently the
fastest growth stock in the sector, and offers a compelling valuation, with a PE
of 8.5 times, and EV/EBITDA of 5.7 times.
The broker, which rates the stock as "buy", notes that the shares have been
adversely affected by sentiment related to the widely publicised U.S. policy to
withdraw from Iraq.
"In our view this will not have a significant impact on the group as in the
short term there will be a 'surge' effect as troops are transferred to
Afghanistan, but more importantly, momentum in the Energetics business continues
apace," Numis says.
For more double click on [nWLA0039]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net

09:51GMT 18March2009-Roche pressured by patient deaths
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Shares in Roche Holding fall 0.75 percent after its Japanese
partner Chugai Pharmaceutical <4519.T> reports 15 deaths among users of their
Actemra arthritis drug. [nT372741]
That negative eclipses positive clinical data on Roche's cancer drug
Herceptin, analysts say. [nLI727908]
"Despite another successful Herceptin study, the negative news from Japan
could outweigh that," Wegelin analysts say in a note.
Reuters Messaging rm://sam.cage.reuters.com@reuters.net

09:47GMT 18Mar2009-BowLeven surges on 150p offer approach
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Shares in BowLeven rocket by over 140 percent after the oil
exploration company says it has received an offer approach from an unnamed party
pitched at 150 pence, over three and a half times the level of Tuesday's closing
price for the stock of 41 pence per share.
BowLeven says it would be likely to recommend an offer at that price, which
would value the business at 130 million pounds ($182.4 million).
"If the offer materialises formally we would definitely accept as it looks
unbelievably good," says Evolution Securities analyst Richard Griffith.
Cannacord Adams analyst Richard Slape expects further news to accompany
BowLeven's interim results statement next Monday.
"I suspect we are at a pretty advanced stage. I don't think it will be too
long before we get some further news," he says.
To see BowLeven's statement please click on [nRnsR0387P]
Reuters messaging rm://matthew.scuffham.reuters.com@reuters.net
($1=.7126 Pound)
Keywords: MARKETS EUROPE STOCKSNEWS =2

09:02GMT 18March2009-Autonomy falls; Investec downgrades
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Shares in Autonomy Corp. fall 2 percent as Investec
cuts its rating for the infrastructure software group to "hold"
from "buy" following news on Tuesday that the firm completed its
acquisition of U.S.group, Interwoven.
In a note, Investec says it still believes earnings momentum
for Autonomy will continue to be positive in the near to medium
term, but it sees this as increasingly factored into the stock's
valuation.
The broker raises its target price for Autonomy to 1,249
pence from 1,238 and ups its 2009 EPS forecast by 13 percent.
But Investec says while it could justify a higher target
price for Autonomy based on estimated earnings accretion from
the Interwoven acquisiton in full-year 2010, it prefers to see
signs of the deal bedding down first.
Deutsche Bank, however, raises its target price for Autonomy
following completion of the Interwoven deal to 1,500 pence from
1,300, and retains its "buy" rating on the stock.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net

08:54GMT 18March2009-European shares gain as banks rise
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European shares rise in early trade, tracking Tuesday's
gains on Wall Street on the back of a surprise jump in housing
starts, and as Japan's Nikkei was pushed up by banking stocks.
The pan-European FTSEurofirst 300 <.FTEU3> index of top
shares is up 0.9
percent at 722.34 points.
Later in the day, the focus shifts to the results of a
two-day U.S. Federal Reserve meeting, and whether economic
conditions warrant additional policymaker action to boost
lending.
"Equity markets are trying to shrug off the uncertainty of
the last months," says market strategist Heino Ruland from
Ruland Research, adding that the strong boosts on Wall Street
and Japan had a positive effect on European stocks.
Financials gain, with UniCredit up 7.4 percent,
after the company posted a 38 percent fall in 2008 net profit,
ahead of analysts' forecasts.
Royal Bank of Scotland , Allianz , Barclays
and Societe Generale are all up between 3.2
and 3.6 percent.
Reuters Messaging
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08:44GMT 18March2009-French Connection falls after results
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Shares in fashion retailer French Connection fall
5.8 percent as the company posts a full-year underlying pretax
loss of 5.5 million pounds against a profit of 3.1 million
pounds the previous 12 months.
The company says it is preparing for another difficult year.
Altium Securities keeps its "sell" recommendation on the
stock.
"At this stage we expect another loss in FY 2010, with a
further reduction
in the net cash balance," says the broker in a note to clients.
For more double click on [nWLA0041]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net

8:41GMT 18March2009-Lanxess falls after slashing dividend, poor outlook
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Shares in Lanxess fall 7.8 percent, making it the worst performer
among German midcaps <.MDAXI>, after the chemicals company gives a gloomy
outlook for its first quarter in 2009 and unexpectedly slashes its 2008 dividend
by 50 percent to 0.50 euros per share.
"Confidence has fallen in the stock as the company doesn't look like it will
be able to steer clear of the economic slump," says a Frankfurt-based trader.
"The outlook is bleak, but again not a surprise. A dividend cut is in line
with our forecast but may disappoint the market," writes Credit Suisse analyst
Rhian Tucker.
"Considering Lanxess' seasonality with first-quarter EBITDA typically being
double that of the fourth quarter...we view material downgrades as likely and
double that of the fourth quarter...we view material downgrades as likely and
expect the shares to underperform today," writes JP Morgan analyst Heidi
Vesterinen in a note to clients.
For more double click on [nLI29424]
Reuters Messaging rm://tyler.sitte.thomsonreuters.com@reuters.net

08:34GMT 18March2009-UK small caps gain 0.1 percent early
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The FTSE Small Cap index <.FTSC> gains 0.2 percent in early trade, faring
worse than the blue chips <.FTSE> and the midcaps <.FTMC>, up 0.9 and 0.7
percent respectively.
Oil and gas company BowLeven skyrockets 137 percent after saying it
has received a possible cash offer from an unnamed party at a price of 150 pence
per share, which would value the business at about 130 million pounds.
Fashion retailer and wholesaler French Connection falls 5.8 percent
after it posts a full-year underlying pretax loss of 5.5 million pounds versus a
profit of 3.1 million pounds the previous 12 months, and says it is preparing
for another difficult year.
For more on Bowleven double click on [nLI260113]; for more on French
Connection double click on [nWLA0041]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net

07:48GMT 18March2009-SGL seen up on update, guidance not as bad as feared
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Shares in SGL Carbon are 3.0 percent higher in pre-bourse trade
according to data from Lang & Schwarz after the graphite and carbon specialist
gives an outlook that is not as bad as feared.
The company warns that sales and earnings will decline this year and reports
in-line 2008 figures.
"The guidance cut was already mulled in a press report and stock suffered
from this yesterday," says a Frankfurt-based trader, noting that the stock is
set up for a rebound.
"SGL guides for a clear profit in the first quarter, which is traditionally
the company's weakest quarter. 2009 guidance shouldn't really surprise as
analysts already expected sales to decrease to 1.52 billion euros and EBIT to
fall around 30 percent," he adds.
A second trader notes that an announcement SGL will not pay out a dividend
in 2008 might weigh slightly on the stock.
For more double click on [nLI320042]
Reuters Messaging rm://tyler.sitte.thomsonreuters.com@reuters.net

07:08GMT 18March2009-European futures point to higher open
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European share index futures rise in early trade and point to a higher
opening for European stocks, tracking gains on Wall Street on Tuesday, where
stocks benefit from an unexpected jump in housing starts.
At 0704 GMT, futures for the DJ Euro Stoxx , Germany's DAX
and the French CAC are 1.4-1.8 percent higher.
The pan-European FTSEurofirst 300 <.FTEU3> index closed 0.7 percent lower at
715.83 points on Tuesday.

EUROPEAN COMPANIES REPORTING:
Danisco
Lanxess
SGL Carbon
Unicredit
Royal Boskalis
Swatch
Baloise

U.S. COMPANIES REPORTING:
Cintas Corporation
Darden Restaurants
General Mills
Nike
Oracle

MAJOR ECONOMIC DATA (GMT):
0930 Bank of England minutes
1100 U.S. Mortgage index
1230 U.S. CPI

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Keywords: MARKETS STOCKSNEWS EUROPE =3

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