German Stocks Fall for Fourth Day; BMW, Infineon, Bayer Drop
By Henrietta Rumberger
March 4 (Bloomberg) — German stocks declined for a fourth
day, led by carmakers and technology companies, on concern
slowing economic growth will weigh on earnings.
Bayerische Motoren Werke AG retreated the most in four weeks
after the worlds largest maker of luxury cars said U.S. sales
dropped. Infineon Technologies AG fell to a record low as Intel
Corp. cut its profitability forecast. Bayer AG slumped to the
lowest in a year after a U.S. judge invalidated a patent on the
top-selling contraceptive pill Yasmin.
The benchmark DAX Index decreased 70.19, or 1.1 percent, to
6,619.76 at 1:48 p.m. in Frankfurt. DAX futures expiring in March
lost 60.50, or 0.9 percent, to 6,633.50. The HDAX Index of the
countrys 110 biggest companies sank 1 percent.
“Cyclical sectors including technology, chemicals and
carmakers are quite weak today, which is generally a sign that
investors are still worried about the economic outlook, said
Raimund Saxinger, who helps manage the equivalent of $17 billion
at Frankfurt Trust.
A report today showed that European consumer spending, which
accounts for almost 60 percent of the economy, fell in the fourth
quarter for the first time in six years, curbing economic growth.
BMW lost 98 cents, or 2.7 percent, to 35.51 euros. The
company said U.S. sales dropped 1.8 percent in February on
declining demand for its brand-name vehicles.
Daimler AG, the worlds second-biggest maker of luxury cars,
lost 1.46 euros, or 2.6 percent, to 54.14 euros.
Infineon, Europes second-largest maker of semiconductors,
slipped 12 cents, or 2.3 percent, to 5.22 euros, the lowest ever.
The company sold shares for 35 euros in an initial public
offering in March 2000.
Intel Forecast
Intel, the worlds biggest chipmaker, said yesterday first-
quarter gross margin, the percentage of sales remaining after
subtracting the cost of production, will be about 54 percent,
citing a glut in flash-memory chips. That compares with a January
prediction of about 56 percent.
SAP AG, the largest maker of business-management software,
retreated 45 cents, or 1.4 percent, to 31.28 euros. The financial
crisis “isnt over yet and SAP isnt immune to its effects,
Chief Executive Officer Henning Kagermann said today, addressing
journalists.
Bayer, Germanys biggest drugmaker, dropped 2.32 euros, or
4.6 percent, to 47.88 euros. The decision yesterday by a federal
judge in New Jersey moved challenger Barr Pharmaceuticals Inc.
closer to the market with a cheaper copy.
“We expect that sales of Yasmin in the U.S. can fall by up
to 50 percent in the first twelve months after the launch of a
generic version, Andreas Heine, an analyst at UniCredit Markets
%26amp; Investment Banking in Munich, wrote in a report today.
The following stocks also rose or fell in German markets.
Symbols are in parentheses.
Delticom AG (DEX GY) added 30 cents, or 0.8 percent, to
39.30 euros. The Internet tire dealer said profit jumped 33
percent to 8.4 million euros ($13 million) last year and plans to
increase its dividend to 2 euros from 1.20 euros a year earlier.
Deutsche Forfait AG (DE6 GY) increased 36 cents, or 5.8
percent, to 6.60 euros. The financial services company which
generates more than 20 percent of its revenue from Iran said
full-year profit rose 13 percent to 5.3 million euros, exceeding
its own forecast.
Dialog Semiconductor Plc (DLG GY) rallied 3 cents, or 2.1
percent, to 1.46 euros. The maker of integrated circuits posted a
fourth-quarter profit after doubling revenue.
Net income reached $1.3 million, or 3 cents a share, the
company said today, without giving a year-earlier figure.
IKB Deutsche Industriebank AG (IKB GY), the German bank
being sold after U.S. subprime mortgage losses, fell 45 cents, or
7 percent, to 5.95 euros after climbing a day earlier when
majority owner KfW Group said it had received several bids.
“The stock is very volatile and investors are speculating
about the sales price, said Michael Seufert, an analyst at
NordLB in Hannover, Germany. “Its hard to say whether
yesterdays or todays reaction is the right one.
Q-Cells AG (QCE GY), Germanys largest solar energy company
by sales, climbed 3.01 euros, or 5.9 percent, to 55.91 euros
after saying a United Arab Emirates state investment fund may
seek to buy a stake.
The Masdar Clean Technology fund has shown interest in
taking a stake in the company, Q-Cells spokesman Stefan Lissner
said today by telephone.
Siemens AG (SIE GY) declined 59 cents, or 0.7 percent, to
83.61 euros. Chief Executive Officer Peter Loescher, speaking at
a conference in Munich today, said that the dollars decline “is
not easy for the company. “Well have to balance our global
production. We will monitor to see if the current level is
sustainable.
TUI AG (TUI1 GY) gained 83 cents, or 5.3 percent, to 16.40
euros. Europes largest tour operator and owner of the Hapag-
Lloyd shipping line said profit rose 47 percent in 2007 on
improvements at both its tourism and marine divisions.
Earnings from continuing activities climbed to 616 million
euros in adjusted terms before interest, taxes and amortization
from 419 million euros in 2006, TUI said today. Sales advanced 7
percent to 21.9 billion euros.
To contact the reporter on this story:
Henrietta Rumberger in Frankfurt at
hrumberger@bloomberg.net.
