Business & Financial News

Eutelsat announced Friday it lost W3B he had launched the day before, but this incident is the subject of guarantees assuring against any direct financial loss, do not question their financial goals.

In a statement, the satellite operator said the loss had occurred as a result of a malfunction in its propulsion system.

The Eutelsat has accelerated its fall Friday shortly after 12:00.

"This is clearly the loss of the satellite sends down the track," said an analyst.

Around 12:50, the title fell by 2.19%, to 26.82 euros, thus showing the second largest drop in the SBF 120, in volume three times larger than the average of 90 days.

"We will now focus our attention on delivery of the satellite W3C for entry into service (…) from the middle of next year and the implementation of a new satellite program to compensate for this loss," said group managing director, Michel de Rosen.

Eutelsat was initially announced on the night that the launch was successful.

W3B, built by Thales Alenia Space, was launched by an Ariane 5 rocket.

The Ariane 5 rocket is built by Arianespace, a company controlled notably by the European group EADS and the French Safran.

The title Eutelsat fell Friday near his lowest level in four months, but gained 19.3% since the beginning of the year, after rising about 37% in 2009.

France Telecom said on Thursday quarterly earnings slightly above expectations, helped by a rebound in France marked its conquest of new subscribers in the fixed and the sales growth in the mobile.

The first French telecom operator has reported an EBITDA of 4,260 million euros in the third quarter, representing a margin of 36.6% (-1.1 points) with a turnover of 11.628 million, an increase 1.1% excluding the impact of regulatory measures.

A Reuters Editor calculated from estimates of 15 analysts expected sales of 11.369 million euros and EBITDA of 4.153 million.

"The repositioning of the price of our triple-play and the success of the Orange Open offers allow us to regain a share of conquest ADSL over 30%," the group said in a statement.

France Telecom confirmed its overall targets for 2010 and medium term, within the margin of its forecast sales for now expects a slight growth on a comparable basis, rather than stability.

The level of new conquests in ADSL subscribers in France reached 32.8% in the third quarter, recovering well after starting the year particularly low, and compares with a rate of 15.5% in the second quarter.

The France Telecom share closed Wednesday at 16.68 euros.It fell by 4.31% since the beginning of the year, compared with an increase of 5.5% of the telecoms sector index.

Ford Motor Co. on Tuesday a quarterly profit of $ 1.7 billion (1.2 billion), higher than the consensus, and an advanced one-year debt repayment considered vital to raise the rating of the group.

The builder, who plans to be a clear beneficiary in 2010, has also reported having paid two billion dollars of debt in the third quarter Friday and will refund $ 3.6 billion of outstanding debt related to a program of health insurance for the United Auto Workers (UAW).

The automaker posted net income rose to $ 1.7 billion in the third quarter, or 43 cents per share, against $ 997 million (29 cents per share) last year.

Excluding the Volvo subsidiary, acquired in August, the group's turnover rose by 1.7 billion to $ 29 billion.

OUT OF CATEGORY "SPECULATIVE"

Ford expects its automotive industry has cash at least equal to its debt at the end of the year, a year earlier than at its previous estimate in July.

Between 2006 and 2008, the group has suffered losses amounting to 30 billion dollars and 23.5 billion borrowed in late 2006 to implement its restructuring.

The group, whose rating is in Category "speculative", hopes to return to investment grade, a level that was lost in May 2005.Ford has a positive cash flow since the second quarter of 2008.

Earnings excluding special group was 48 cents per share against 38 cents expected by analysts, according to Thomson Reuters consensus I / B / E / S.

Ford Credit, the financing arm reported earnings before taxes of $ 766 million.

Around 1400 GMT, the title progressed from 0.71% to 14.25 dollars.

Hermes said Sunday that the long-term control of the company was guaranteed by its sponsorship status, following the announcement by LVMH, the world of luxury, his entry into his capital.

"Today, the family shareholders is, with almost three-quarters of the capital, a large majority and perfectly united in the pursuit of a business plan together," Hermes wrote in a statement.

"Maintaining the long-term control of the company Hermes is guaranteed by its status as a partnership limited by shares and shareholders of the Hermes family confirms that no transfer proposal is considered significant capital," adds the company.

"The rating on the stock exchange allows investors who wish to enter a minority in the capital," she says.

"Company-dominated family, Hermes has always been and will always have the utmost respect for its shareholders," she says.

Safran said Friday it would soon take a decision on a possible merger with Zodiac, recognizing that the market would not appreciate a prolonged uncertainty.

The equipment manufacturer specializing in aerospace, defense and security has reiterated its targets for 2010 and its confidence for 2011 and beyond, after a turnover higher than expected in nine months thanks to the good performance of its activities security, landing systems and optronics.

The share lost 0.65% to 21.24 to 11.45, in line with the index of pan-European industry.Saffron, a capitalization of 8.9 billion, took 56% this year.

"The group's prospects are strong and this is reflected in its valuation," said in a note to CM-CIC, which remains to lighten with a target price of 18 euros."Within the A & D sector, we continue to promote the values most exposed to the defense."

Chief Executive Jean-Paul Herteman reiterated to analysts that a combination with Zodiac creates value and Safran continued to analyze synergies.

Saffron has so far refused by the family shareholders who entered the Zodiac in September a new deal in the form of defense against the offensive.

The action Zodiac yielded 0.25% to 11.45.

"We must take seriously our decision, but we will not wait too long," said Jean-Paul Herteman, while some analysts have criticized the lack of Safran clear statement about his intentions.

He however stressed that this was not the only strategic opportunity for Safran, who announced a month ago a proposed acquisition of U.S. company L-1 Identity Solutions for $ 1.09 billion in cash (783 million).

Saffron confirmed target for 2010 an operating margin tending to 8% – against 6.7% in 2009 – at a target rate of coverage of 1.44 dollar per euro.

It is also banking on a turnover close to EUR 10.4 billion in 2009, compared to Thomson Reuters consensus I / B / E / S 10.7 billion.

"The performance achieved during the first nine months and the current positive trends in our markets to demonstrate that the prospects announced for the whole year and reiterate our confidence for 2011 and beyond," said in a statement Jean-Paul Herteman.

RESTART IN PARTS OF ENGINES

Saffron has achieved a turnover up 3.4% over nine months – but declined by 1.4% on an organic – to 7,790 million euros, above the consensus achieved by writing code from Reuters from five analysts whose average stood at 7.639 million.

In the third quarter alone, sales rose 8.8% – an organic growth of 0.5% – 2.593 million, including pulled by leaping from 29.6% in the defense and 35.4% in security.

But the aerospace propulsion division, who realizes she only half of the turnover of Safran, shows a fall of 1.1% of its sales in the third quarter.

Deliveries of the CFM56 – which equips all models of existing short-haul Boeing and Airbus some – have declined by 27 units to 294 due to delays related to the flooding of a plant in Poland, which should be caught up in the fourth quarter.

CFM International is a joint venture between General Electric and parity Safran.

Sales of spare parts for engines fell 16% in the third quarter over a year, but show an increase of similar magnitude compared to second quarter 2010.

Sales of appliances increased by 14.5% in the third quarter in favor of Boeing B787 Dreamliner.CFO Ross McIness Safran said he expected that strong deliveries on the 787 recorded in the third quarter continued in the fourth.

Boeing announced Wednesday a better than expected quarterly profit and raised its forecast for 2010, supported by the recovery of civil aviation market.

The nuclear group Areva in early October reduced from 7.4% to 2.0% its stake in Safran, Sagem inherited from before merging it with Snecma. Float Saffron rose to 46.7% against 38.1% at December 31, while the share of the state remains at 30.2%.

Bic, maker of pens, lighters and disposable razors, said Wednesday net results in growth and raised its forecast for 2010, an announcement that triggered a sharp rise in the stock exchange.

Bic has raised its growth forecast for 2010 for its consumer division by 5% to 7% and indicated that the normalized operating margin of this activity is expected to reach the high end of its medium-term objective, which ranges from 15 % to 18%.

At 9:20, the action Bic was up 4.82% to 64.37 euros and signed the largest increase in the SBF 120, giving a market capitalization of 3.1 billion euros.At the same time, the CAC 40 was down 0.22%.

In the first nine months of the year, sales amounted to 1.358 billion Bic euros, up 7.2% on a comparable basis.Net income over the same period amounted to 160.9 million euros, up 34.8%.

These results are better than those provided by CM-CIC Securities, who notes that their publication "should be clearly understood by the market."

Natixis has in turn raised its recommendation on the title to purchase.

Bic title records an increase of over 32% since the beginning of the year.

Bic has nonetheless warned investors that its sales growth to slow by the end of the year.

"After the strong performance of the first nine months of the year, the trend of the fourth quarter of 2010 should be close to the slight growth in the fourth quarter of 2009," the group said in a statement about its consumer division public.

This division, which includes lighters and razors, has seen its sales grow by 8.8% on a comparable basis in the first nine months of 2010.

The slowdown should have the effect of limiting the increase in all of 2010 to 7%, the group said.

In the fourth quarter of 2009 the division had seen its sales grow by 2.5% over the same period in 2008.

Wall Street opened lower Tuesday penalized considered disappointing quarterly results from Apple and IBM, while raising interest rates made by China in Beijing confirms fears vis-à-vis inflation and speculation.

A few minutes after the start of trading, the Dow Jones yielded 1.24%, to 11,005.57 points, the Standard & Poor's 500 index 1.32% to 1169.08 points and the Nasdaq Composite 1.64% in 2439 , 96 pt.

People's Bank of China surprised markets by raising a quarter point each, deposit rates and lending to one year, a first of its scope since December 2007.

Although both reported better than expected quarterly results, IBM and Apple, respectively, yielded 4.15% and 4.1% in early trade as investors expressed disappointment at the decline in sales and services of the first the difficulties encountered by the second in the supply iPads.

These ads have effectively increased the doubts on Wall Street on the quality of the current season of quarterly results.

By contrast, Goldman Sachs gained 0.6% after reporting better than expected results, while Bank of America lost 1.2% after a sharp rise in losses due to impairment of goodwill relating to its activity Credit Card 10.4 billion dollars.

The banking sector will once again be on center stage next week, both because of a series of results and further investigation, which weighed on financial stocks Thursday and Friday on foreclosures.

While the whole of last week, the Dow Jones and S & P 500 advanced by 0.5% and 0.9%, the KBW bank index fell 4.5% over the same period and the S & P financial sector of 2.38%.

Action Bank of America (BofA), the largest U.S. bank, fell 9% last week.On the only day on Friday to 595.9 million as BofA were exchanged, being the highest level since April 2009 and more than four times the 50-day moving average.

Investors fear that the ongoing investigation on foreclosures, opened Wednesday by the 50 U.S. states, reveals irregularities in procedure which, if any could result in fines and forced repurchases of mortgage loans.

In addition to the possible impact of investigation on the profitability of banks, stakeholders also fear the effect it might have on the property market as such.His recovery is yet considered a prerequisite for the sustainable recovery of U.S. economic activity.

Kevin Caron, a technical analyst with Stifel, Nicolaus & Co., points out that the uncertainty generated by the initiation of States might divert buyers of homes that were seized.

The officers of Bank of America, Citigroup and Wells Fargo will likely face a barrage of questions during next week, the presentation of third quarter earnings of these banks.

RESULTS OF SERIES

The financial sector as a whole is expected to report a 71% increase in earnings over third quarter 2009, while showing a decline of 6% of its net banking income (NBI).

Regardless of the negative impact of the initiation of seizures, the financial sector is lagging behind Wall Street, the KBW bank index had gained only 4% since September 1, against a gain of nearly 12% for the S & P 500.

David Giroux, a fund manager, said that expectations of seeing deflation affect results of banks in the short term weighed on the sector.

"If you think that deflation will prevail – which seems to be the case with many market players – it is inevitable that financial stocks will underperform," he said.

Many Federal Reserve officials have called for the establishment of new measures to support the economy, aiming in particular to fight against the phenomenon of deflation.The prospect of the Fed put in place new measures of quantitative easing has been a supporter of the market over the past two months.

Next week, the U.S. central bank will release its Beige Book on the state of the economy, which will learn even more about the state of his thinking.

Among other indicators provided on the agenda also include industrial production, housing starts or the index of activity in the Philadelphia Federal Reserve.

The earnings season is not just banking stocks next week, as Caterpillar, Johnson & Johnson or Apple must publish their quarterly performances.

Essilor announced Friday it will acquire 50% of Shamir Optical, a specialist in corrective lenses based in Israel.

The world leader in ophthalmic optics said in a statement that the acquisition was for him an investment of $ 130 million (92 million euros) and be fully funded by its existing credit lines.

After the operation, Kibbutz Shamir and Essilor will each own 50% of Shamir Optical.

"Based on current projections, it is expected that the transaction be accretive to earnings per share of Essilor in 2011 (before the impact of the allocation of purchase price)," said the French group.

Shamir Optical reported 2009 sales of $ 142 million (100 million euros), mainly in Europe and the United States.

The company, which employs about 1,400 people, "has one of the best research and development, which allows him to design progressive lenses, molds, tools and technologies related to more efficient," according to Essilor.

"This transaction is a strategic complement to the activity of Essilor and strengthen our offering in the midrange segment with additional product quality," said Hubert Sagnières, the director general of the French group said in a statement.

Under the terms of the agreement, Shamir Optical undertake a delisting from Nasdaq and the Tel Aviv Stock Exchange through a merger with a 100% subsidiary of Essilor, and all shareholders other than Kibbutz Shamir will receive a cash payment in exchange for their shares.

Meanwhile, Essilor will buy from Kibbutz Shamir, the number of shares necessary to reach 50% of Shamir Optical.

This will be done at a price of 14.5 dollars per share Shamir Optical.Added to the dividend of 0.804 U.S. dollar for shareholders holding at November 8, 2010, this price corresponds to a total value of 15.3 dollars per share, a premium of 57% over the average closing price on Nasdaq of the last 90 days (9.75 dollars), Essilor said.

After the operation, the principal balance of Shamir Optical is owned by Kibbutz Shamir.

The transaction, which remains subject to obtaining various regulatory approvals and approval of the shareholders of Shamir Optical, should be finalized by mid-2011.

The Italian authority for market supervision (Consob) has given the green light Wednesday to the IPO of Enel Green Power (EGP), a subsidiary of Enel specializing in renewable energy.

With this transaction, expected to be the largest European IPO in 2010, Enel hopes to raise at least three billion euros by selling a third of the shares of EGP.

Enel, the group of utilities most indebted in Europe, wants to reduce its debt with the proceeds of the transaction and protect its credit rating.

The Milan Stock Exchange has approved the transaction on Monday.

Sources have told Reuters that investors should start the meetings on October 18 and the price of the IPO should be set on Oct. 29, with a listing in early November.

There are about ten days, a source said Enel had set a tentative price range of from 1.9 to 2.4 euros.