Sun, Jul 27, 2003 - Page 10 News List

Europe gets high on drug companies

RELIABLE INDUSTRY Analysts say that the pharmaceuticals industry is one area of the economy which often weathers even the most difficult economic tribulations

BLOOMBERG

DSM sank 3.4 percent to 40.17 euros after saying third-quarter profit may drop more than 25 percent from 68 million euros in the second quarter. The shares gained 1.4 percent in the week.

Exchange rates

Rhodia SA, France's biggest specialty-chemicals maker, dropped 4.6 percent to 5.38 euros after saying the second half is proving more difficult than anticipated, partly because of changes in demand and foreign exchange rates. It posted a second-quarter net loss of 87 million euros, hurt by increased petrochemical prices. The stock lost 5.1 percent this week.

Siemens, Germany's biggest electronics and engineering company, dropped 0.2 percent to 49.00 euros, trimming its gain for the week to 3.4 percent. The company said Thursday fiscal third-quarter net income fell 13 percent to 632 million euros, beating the 454 million-euro average estimate by analysts surveyed by Bloomberg News.

Renault SA, France's No. 2 carmaker, climbed 3.8 percent to 49.8 euros. The company said first-half net income rose 32 percent to 1.18 billion euros, boosted by affiliate Nissan Motor Co, which almost tripled earnings. First-half net income beat the 1.1 billion-euro median forecast of 12 analysts surveyed by Bloomberg News. The stock added 3.8 percent this week.

Insurers

Legal & General Group Plc Thursday predicted sales of financial products will rise, lifting shares of UK rivals such as Prudential Plc, the country's largest insurer, and Aviva Plc.

Legal & General, the UK's fourth-largest insurer, climbed 4.6 percent to UK Pound 0.97, bringing its weekly advance to 8.7 percent.

The company said it expects demand to improve in the second half.

First-half operating profit rose 1 percent to UK Pound 365 million (US$587 million). Analysts surveyed by Bloomberg had expected profit of UK Pound 364 million.

Prudential Plc, the largest UK insurer by premium income, climbed 1.6 percent to UK Pound 4.33, for a weekly gain of 3.3 percent.

Aviva Plc, the country's second-biggest insurer, added 1.7 percent to UK Pound 4.9725, for a 4.3 percent rise since last Friday.

Zeltia SA, a Spanish company developing cancer treatments from marine life, slumped 19 percent to 5.79 euros. The rejection of its most advanced drug, Yondelis, by the European Agency for the Evaluation of Medicinal Products raised concern about the company's ability to continue funding research. The stock fell 6.2 percent this week.

This story has been viewed 3344 times.
TOP top