Business & Financial News

GDF Suez on Thursday posted an increase in operating performance in 2011, thanks especially to the takeover of Britain's International Power since February, and said target a net recurring at least stable in 2012.

The French energy company and table for the current year on a recurring net income group share of between 3.5 and 4 billion euros (against 3.5 billion in 2011) on the gross investment of about 11 billion and an ordinary dividend equal to or greater than that paid for 2011. 

But he cautioned that these objectives were based on a particular impact of its total procurement costs on regulated gas prices in France, while they were partially frozen in 2011, hurting its gross operating profit (EBITDA).

GDF Suez also table at 2015 on a recurring earnings, Group share, of the order of 5 billion euros "to mean climate control and stable", with a level of gross investment of about 9 to 11 billion euros a year and a stable or increasing dividend over the period 2013-2015.

GDF Suez in 2011 recorded a group net profit of 4.003 million euros (-13.3%), EBITDA of 16.525 million (+9.5%) and sales of 90.673 million (7 , 3%). 

The consensus reached by the editor of Reuters and Thomson Reuters I / B / E / S, analysts on average expected a net profit of 4.599 million euros, an EBITDA of 16.511 million and a turnover of 90.004 million.

GDF Suez proposes an ordinary dividend of 1.50 euros per share for 2011, unchanged compared with that paid in respect of 2010.

The Swiss pharmaceutical company Roche made Wednesday his confidence for the current fiscal year while announcing a 2011 annual result in line with expectations despite significant currency effects. Roche also pointed out that the year 2012 was marked by the takeover bid that leads on American society Illumina Genome Sequence . Revenues fell 10% to 42.53 billion Swiss francs (35.29 billion euros), while analysts had expected 42.37 billion. At constant exchange rates (CER), it appears, however, an increase of 1%. The Pharmaceuticals Division has contributed nearly $ 32.79 billion, down 12% year on year. Sales and the Diagnostics Division for their part, declined 7% to 9.74 billion but increased by 6% TCC. Markets expected 32.69 billion for the Pharmaceuticals Division and 9.73 billion for the Diagnostics Division. The net profit was up 7% in France and 26% TCC to 9.54 billion francs, while the market had forecast 9.49 billion. The Board of Directors propose a dividend of 6.80 francs per share and enjoy good (titles stripped of voting rights) for the past year against previous 6.60 francs ; ously. "As for 2012, we expect sales growth of the group in the lower part of the medium single-digit range and have set our target for growth in earnings per Share core activities in the upper part, "said CEO Severin Schwan said in a statement. Roche also aims for its Diagnostics division higher growth than the market and is committed to pursue its attractive dividend policy. The Director General also reiterated that all the hopes placed in Illumina Roche, the U.S. company for which his group has launched a tender offer unsolicited e at a cost of $ 5.7 billion. "The planned acquisition of Illumina will strengthen our presence in the fast growing market of DNA sequencing and enable the discovery of biomarkers for complex research and to clinical purposes, "he said.

Wall Street should end the year 2012 on a moderate gain, despite the risks posed by the debt crisis in the euro area in global activity and a U.S. growth likely to remain sluggish, according to a Reuters poll published Thursday.

Analysts surveyed are however optimistic about the economy of the United States and many are in stock price ratios of estimated earnings (PER) historically low a supporting factor for the rating.

All concerned, however, the debt crisis in Europe, who falter world stock markets in recent months.

The Standard & Poor's 500 benchmark for fund managers, should finish next year on an increase of 7.5% to 1340 points, compared to the closing of nearly 1.

The Polish Minister for Finance said that the ECB should act as lender of last resort to fragile countries "to ensure stability in the euro area, its mandate". A position that faces the reluctance of the institution and Germany. ECB

The Polish Minister of Finance ruled Monday that the Europeans had a choice between "a massive intervention of the ECB" to save the euro area, "the catastrophe" of a "historic economic disaster," in an interview with the Frankfurter Allgemeine Zeitung. "The dangers of contamination are now greater than ever, and the money we need to stop them have grown because we have not acted quickly enough," said Jacek Rostowski everyday German. The implementation of the stabilization fund financial EFSF long overdue for its role as a firewall and the ECB must act now, "to ensure stability in the euro area, its mandate".

"We are faced with a choice horrible. In order of horrors, the alternative is: either a massive intervention by the ECB or the catastrophe," he said. The minister, who in September had raised the risk of armed conflict in Europe if the euro crisis would lead to the collapse of the EU, in a speech to dramatic accents to the European Parliament in Strasbourg, s' Monday is called "less reassured" after two months. "The risk is that of a historic economic disaster like the Great Depression of the 1930s, lead to the final of Europe in war," he added.

The European Central Bank (ECB) refuses to act as lender of last resort of the European states by buying an unlimited sovereign bonds, as it acquires dropper and on the secondary market.

UniCredit announced Monday a capital increase of EUR 7.5 billion, having unveiled a heavy loss in the third quarter.

Italy's largest bank reported a net loss of 10.641 billion euros, depreciation included in the third quarter.

Its impairment of goodwill stand at 9.6 billion.

Its capital adequacy ratio stood at 8.74% hard at the end of September.

UniCredit said that after the issuance of securities, expected to close in the first quarter of 2012, core tier 1 ratio will increase to 10.35% according to Basel II banking standards.

EDF shares fell more than 5% Friday afternoon in Paris Stock Exchange, market participants have cited an article in Le Monde that the Socialist Party and environmentalists are about to sign an agreement providing for election closures nuclear power plants.

Interviewed by Reuters, the two sides, however, said no such thing had been decided yet and that negotiations for the presidential and legislative elections of 2012 in France continued.

The electrician public asked the Financial Markets Authority (AMF) to investigate the collapse of the course.

"Discussions are at this stage, more general," he told Reuters Michel Sapin, former economy minister, Francois Hollande close and involved in these negotiations.

As for Yannick Jadot, spokesman Eva Joly, candidate of Europe Ecologie-Greens, he felt that the article in Le Monde shows a vision "a little fictionalized" reality.

"Should there be an agreement between the two, Fessenheim shut fairly quickly.(…) We are still at an output of nuclear power including actual closing fast enough for the older plants, "he said.

He hoped that negotiations with the Socialist Party end up in the next 15 days.

François Hollande, Socialist candidate for president, wants a drop from 75% to 50% of the share of nuclear in electricity generation.

The central Fessenheim is the oldest in France and has two reactors of 900 megawatts each.

Last summer, the Nuclear Safety Authority (ASN) found that the No. 1 reactor of the plant was capable of being operated ten years older.

European shares move in a disorganized Tuesday, investors playing the caution on the eve of an EU summit which many hope it will bring a muscular response to the debt crisis that has shaken the region for two years now.

In Paris the CAC 40 index yields 0.20% to 3213.19 points to 13.30.

At the same time, London was up 0.29% and 1.32% Frankfurt wins.

After two sessions of gains, the markets are showing signs of slowing, traders citing concerns about the vote of the German parliament Wednesday prior to the expansion of bailout funds in the euro area, as well as the implementation by Italy austerity measures demanded by its European partners.

The energy values, however, argue the market.The Stoxx European oil and gas sector gaining 1.5%, driven notably by better than expected results from BP, which estimates that its production is about to rise.

In the banking sector, Deutsche Bank, UBS and Swedbank grew respectively by 1.46%, 4.66% and 2.42% after all beaten the consensus in the third quarter despite the difficult economic conditions.

Action Air France-KLM gives 2.6% as a result of information from the radio BFM Business that the airline may soon issue a warning on its results.

STMicroelectronics acknowledges since opening the biggest drop of the CAC 40, yielding almost 7% after announcing a decline in sales in the third quarter in a context of deteriorating market for semiconductors and uncertainty general economic conditions.

The euro, which has entered Monday a six-week peak against the greenback, still rising beyond $ 1.39 on hopes of convincing the top end of Wednesday.

On the eve of crucial European summit must agree on strengthening the EFSF, rumors are going well. The scenario of the report shook the stock markets. The trading floor in Frankfurt

According to information from the daily Die Welt, Germany could request that the date of the scheduled EU summit be postponed Sunday. Significant differences remain in effect for the implementation, especially the status of the EFSF "reinforced". A European diplomat had already emphasized this point of contention with the AFP in the morning.

The silence of Angela Merkel and Nicolas Sarkozy after their meeting Wednesday Express is not a good sign according to some analysts.

The summit, originally scheduled October 17, has already been postponed once.But several senior sources directly involved in the preparation and organization of the EU summit on Sunday, said on Thursday told Reuters not be aware of any proposed postponement of the meeting.

Another fear of the markets, they are trying to learn more about a paper on the EFSF, obtained by news agencies and that the European fund would be used as a last resort to recapitalize banks after the stress shareholders, private investors and governments.

Markets nervous

In this waiting period, nervousness is being felt in markets. Losses CAC40 who had reduced to just 0.5% to double and even more since the French values ​​now fall -1.35% to 15h.

European markets were down -1.1% on average (such as Madrid and Milan), but Frankfurt falls of -1.5%.

Morgan Stanley said Wednesday it posted a profit in the third quarter, supported by an accounting effect that stems from a new valuation of its debt.

The second U.S. investment bank posted a profit of $ 2.15 billion (1.55 billion), $ 1.15 per share against a loss of 7 cents a year earlier.

Net banking income rose 46% to 9.89 dollars.

Excluding a gain of $ 3.4 billion attributed to an adjustment of the value of its debt, Morgan Stanley gained 2 cents a share.This is related to an accounting rule known as an "adjustment to the valuation of debt" (debt valuation adjustements or DVA).

Clearly, the fact of integrating into account the increased risk associated with a reduced commitment required of the holder, thus generating accounting profits.

Before Morgan Stanley, JPMorgan and Goldman Sachs have also used the accounting process.

Forward Exchange, the title of Morgan Stanley advanced 18 cents to 16.81 dollars.

Income from its trading activities more than doubled from the third quarter of 2010 and an increase of 24% over the period April-JuneThis sharp increase reflects the gains attributable to the DVA.

Its asset management segment has meanwhile reached a revenue of 3.26 billion dollars, 5% more than last year at this time, but less than the second quarter.

GNP derived from asset management is in turn stood at $ 215 million, 73% from the third quarter of last year and 67% less than in April-June 2011.

This decline is attributed to losses on investments in its banking business and its activities in real estate.

The coming months may have an air of "déjà vu" for Suez Environnement, which is likely to revise down its ambitions, as in 2009, due to the economic downturn and its impact on the volume of industrial waste.

The world number two environmental services will probably have to even make acquisitions and accelerate cost reductions to be closer to its goals 2012-2013, analysts say.

"Given the deterioration in the macroeconomic environment and its impact on the business 'waste', we believe that the group will have difficulty achieving its 2012-2013 horizon," said Julien Desmaretz, at Bryan Garnier.

Building on a "gradual economic recovery," Suez Environnement has announced that it was early 2011, at constant exchange rates, the increases of at least 5% of its turnover and 10% of its gross operating profit (EBIT, EBITDA) in 2011 compared to 2010.

He also said it expects, always at constant exchange rates, on average increases of at least 5% of its sales and at least 7% of its EBITDA over the period 2012 to 2013, he still has goals confirmed in early August .

But growth prospects that loomed earlier this year moved away, especially with the debt crisis in the eurozone, while Europe accounted for 73% of its turnover in 2010 and waste 47 %.

The International Monetary Fund even had to revise downwards in September growth forecast for 2011 and 2012.

"Asset rotation"

"We expect 6% growth in EBITDA in 2012 and 2013.For 2011, it will be fair: there are risks if the T4 seen a collapse in industrial production and prices of recycled materials, "says Yohann Terry, an analyst at Exane BNP Paribas.

While threatening a new credit crunch, the prudence of Suez Environnement on acquisitions and financial profile, however, now appear as assets against his great rival Veolia Environnement, the world leader in the industry.

Just before 2008, Veolia and had instead embarked on a series of acquisitions at the top of the cycle, particularly in Germany, Italy and the United States, which proved to be far less profitable than expected in times of crisis.

The prospects of Suez, however, been a little more pressure with the sale of 70% of Bristol Water in early October for 152 million euros, the group will probably have to make acquisitions of modest size to hope to achieve its objectives.

"The group has not changed its 'guidance', confident in its ability to fill the air hole as part of its policy of rotation of assets.Does this mean that the probability of transaction (s) reasonably sized acquisitions currently under consideration (s) by the management is high? "Questioned in a note to analysts at Natixis.

"We would not be surprised (…), even if its strategic focus is on organic growth," they add.

Julien Desmaretz, Suez Environnement would need to buy at least 650 million euros in assets, enterprise value, to achieve its objectives in 2012.

"Better prepared"

The group may also consider to increase its efforts in saving a lever that allowed him to limit the damage after the crisis of late 2008, while the slowdown in activity in its industrial and commercial customers affected volumes and its margins.

But having already held in February the objectives of its savings program for 2010-2012, which it expects a net gain of RBE 300 million in cumulative over three years, some analysts estimate that Suez Environnement has now limited room for maneuver.

"Given the bad experience of late 2008, management is probably better prepared for a new fall of the economy," notes, however, Yohann Terry.

In terms of dividend, the company said in February that it was an annual increase of about 5% for the years 2011 to 2013, a policy that the economy could again challenge.

"If the growth in consumption expenditure of municipalities, industrial production and commodity prices were to decline, the purpose of dividend growth would probably be revised down due to the impact on EPS and therefore the payout "said Yohann Terry.

Some analysts believe however that the group will continue to better withstand the stock market as Veolia, which has abandoned its goals this summer and in December will detail restructuring measures designed to make it more profitable.

Since the beginning of the year, the action Suez Environnement has lost 25.8% and Veolia has plunged 47%, while the CAC 40 fell by 15.11%.