The Good, The Bad, The Ugly of Euro Earnings

CNBC.com with Wires
Thursday, 31 Jul 2008 | 4:51 AM ET

European earnings were mixed Thursday, with telecoms reporting results in line or above forecasts, while energy companies and financials posted profit declines or figures below market expectations.

Telecom Earnings

  • France Telecom first-half net profit falls 18 percent as tax and financing costs increased.
  • Spain's Telefonica said first-half revenues grew 2.1 percent year-on-year, driven by a rise in mobile clients.
  • Telecom company BT Group reported first-quarter earnings slightly below forecasts and said its full-year guidance remained unchanged.

Financial Earnings

  • UK mortgage lender HBOS reported a 51 percent drop in first-half profit as it took a $2.2 billion hit on debt securities impacted by the credit crunch. The bank also said it would consider selling assets if the right price is offered.
  • Insurer Prudential just beat forecasts with a 7 percent rise in first-half profit, helped by Asia.

Energy Earnings

  • Italian oil and gas major Eni posted a 4.4 percent rise in second-quarter adjusted net profit, below analysts' forecasts.
  • UK gas-owner Centrica said it been "absolutely necessary" to raise household gas prices as first-half operating profit fell nearly 20 percent.

Other Earnings

  • Unilever reported a 6.8 percent rise in second-quarter underlying sales from prices rises. The food and consumer goods group also warned of softening economies in the U.S. and Western Europe on the back of high commodity costs.
  • French pharma Sanofi-Aventis posted lower profit and sales that fell short of expectations, but raised its 2008 earnings per share forecast.
  • German chemical company BASF's second-quarter operating profit rose 19 percent, thanks to rising oil and gas prices and a strong demand for its agrochemical products.
  • British American Tobacco posted a 16 percent rise in first-half earnings and added it was confident about the future.
  • Miner Anglo American said first-half underlying profit rose 14 percent on higher output and prices, at the top end of estimates, and forecast a strong second half.
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