European earnings were relatively subdued on Friday, with bad news coming out of German financial services Allianz as its Dresdner Bank unit posted a quarterly operating loss.

Linde's Profit Lower Than Expected

Also in Germany, industrial gases group Linde reported a lower-than-expected rise in first-quarter operating profit, but reaffirmed its forecast for higher sales and an advance in operating profit higher than the growth in sales in 2008.

Earnings before interest, tax, depreciation and amortization (EBITDA) excluding exceptional items rose 5.8 percent to 602 million euros ($922.9 million), missing the average estimate of 621 million from a Reuters poll of 13 analysts.

Revenue gained 7.5 percent to 2.92 billion euros, also missing expectations and allowing Air Liquide to squeeze past it after its French rival reported late last month a 10.8 percent gain in top-line growth to 3.09 billion.

Linde added that net debt to end-March fell to 6.25 billion euros from 6.43 million at the end of 2007.

Ahold Sales Fall

Dutch supermarket group Ahold reported lower than expected quarterly sales and said a weak dollar and an overhaul of its U.S. chains were hurting profit margins.

The group also said rising food prices were a concern.

Sales fell 1.3 percent to 7.54 billion euros ($11.6 billion) from 7.63 billion euros in the year-ago period, Ahold said in a statement.

This was below an average forecast of 7.8 billion euros in a Reuters poll of 10 analysts.

Ahold owns the Netherlands' biggest supermarket chain, Albert Heijn, but derives just over half of its sales in the United States.

At constant exchange rates, sales increased 6.8 percent.

Albert Heijn shone with a 13.5 percent rise in sales to 2.7 billion euros, outpacing the market growth rate of 9.2 percent.

Sales from stores open at least a year grew 11.3 percent in local currency.

The Dutch chain accounts for about a third of annual turnover, but half of Ahold's operating profit.

C&C Earnings Drop

And in Ireland, drinks group C&C posted a 41.4 percent fall in 2007/08 full-year earnings and said performance in the financial year to date had been hit by low consumer confidence and poor spring weather.

Adjusted basic earnings per share (EPS) for the 12 months to the end of February fell to 32.2 euro cents.

That compared with the 29.7 euro cents average of 14 analysts' forecasts on Reuters Estimates for EPS before exceptional items.

"On the basis of normal summer weather, the Group expects the premium cider category in Great Britain to return to growth in 2008," said C&C, the makers of Magners cider.

C&C, which has repeatedly warned that poor weather last summer and weak Christmas sales would hit full-year earnings, said Magners volumes fell 15 percent in 2007/08, while volumes for its Irish cider brand Bulmers dropped 4 percent.

Revenues fell 8.1 percent to 679 million euros.

-- Reuters contributed to this report

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