DJ EUROPEAN MORNING BRIEFING: Stocks To Struggle Higher

US SUMMARY: Investors Turn Defensive

DJIA 11102.51 loss 1.20 dn 0.01%
NASDAQ 2076.46 loss 3.44 dn 0.17%
S&P 500 1268.40 loss 0.48 dn 0.04%
Dow Future 11153.00 gain 15.00 up 0.1%
NASDAQ Future 1498.50 gain 2.75 up 0.2%
S&P Future 1275.00 gain 1.75 up 0.1%
Euro-USD 1.2718 gain 0.0008 up 0.06%
10-Yr US Treasury: 5.04% down 0.03
(Futures values, Treasury, EUR/USD Data as of 0450 GMT)
Nervous investors cashed in profits from a two-day rally on Wall Street Wednesday, leaving stocks marginally lower after a session of seesaw trading. Energy costs hit transportation shares. Investors headed into defensive stocks. Treasurys rallied, oil gained and the dollar fell.

STOCKS: Stocks opened lower, swung to a gain after the Federal Reserve's Beige Book of regional economic conditions said inflation was in check and then dropped as the session neared its close.

While earnings season is off to a solid start, the outlook is uncertain.

"From the companies that have reported, I would say that it's clear that earnings growth is going to slow in the second half of the year. The question is to what degree," said Brian Bush, director of equity research, Stephens Inc.

In company news, General Motors rose 4.4 percent, after it said it lost $3.2 billion in the second quarter as it absorbed heavy charges for its massive restructuring program. But the world's largest automaker reported an adjusted profit without the charges that beat Wall Street estimates and its sales surged 12 percent.

Boeing fell 4.6 percent after it reported a $160 million loss for the second quarter on more than $1 billion in charges, including the steep cost to settle a Justice Department investigation into its defense contracting.

FOREX: The dollar is extending losses from Wednesday, when failing technicals and the Fed's Beige Book weighed.

Anecdotal evidence from the Fed's 12 districts seemed to indicate that the economy was starting to slow, and, according to analysts, that some of the recent uptick in consumer price pressures recently reported seemed to be less apparent. The Beige Book is a summary of economic activity prepared for use at the central bank's next meeting Aug. 8, adding context to economic indicators under consideration.

BONDS: U.S. Treasury prices rallied after a report from the Fed outlined cooling economic activity.

With the market currently split over the odds of a rate hike at the Fed's Aug. 8 policy-setting meeting, "the Beige Book was at least enough to lean on the side of the Fed pausing," which is what boosted prices, said John Canavan, strategist with Stone & McCarthy Research Associates. He reckons the gains, however, could be short lived, and that investors could push prices down on Thursday as they get ready to absorb the Treasury's scheduled sale of $14 billion in five-year notes.

Lehman Brothers economists noted, "on net, the Beige Book had a dovish undertone, decreasing the probability of a Fed rate hike in August." They added, "shortly after its release, the market expectation of an August rate hike fell to 40% from 54% prior to its release."

OIL: Prices finished up 19 cents to $73.94 on Wednesday, with no letdown in the Israeli-Hezbollah fighting and after U.S. government data showed a large drop in gasoline supplies. Mike Fitzpatrick, a broker at Fimat USA in New York, said "We're telling our clients that on every dip they have to buy. That's what you're seeing."

ASIAN SUMMARY: Shares Rally; U.S. Senators Rap China

USD-Yen 116.22 loss 0.03 dn 0.03%
AUD-USD 0.7610 loss 0.0010 dn 0.2%
Nikkei 225 15175.78 gain 291.70 up 2.0%
Hang Seng 16846.73 gain 229.40 up 1.4%
S&P/ASX 200 4969.70 gain 62.10 up 1.3%
Taiwan Index 6443.83 gain 67.44 up 1.1%
S.Korea Kospi 1297.84 gain 18.76 up 1.5%
JGB Yield 1.8550% up 0.0100
(All values as of 0450 GMT)
STOCKS: Asian markets dismissed early caution to trade sharply higher Thursday, boosted by optimism on the interest-rate front and generally upbeat quarterly earnings by Japanese corporate heavyweights.

Australian shares rose in line with other markets but traders remain wary of rising inflation. "Our strategy guys have turned increasingly bearish," said David Halliday, client adviser at Macquarie Equities. Miners BHP Billiton and Rio Tinto both were up 1%.

FOREX: The dollar/yen bounced around in a tight range of 116.18-116.43 as Japan importers bought and U.S. and European hedge funds sold. The authors of a U.S. Senate bill that would impose steep tariffs on Chinese imports said that China must show more progress on foreign exchange reform or they would call for a vote on the legislation by Sept. 30.

BONDS: Prices of Japanese government bonds were little changed. "Selling pressure isn't that strong, but no one is willing to buy actively either ahead of Friday's CPI data and next week's 10-year bond auction," says Mari Iwashita, senior bond strategist at Daiwa Securities SMBC. Dow Jones poll tips nationwide CPI to have risen 0.6% on-year in June vs 0.6% growth in May.

OIL: Prices continued the slight fluctuation the market has seen all week, dropping 15 cents to $73.79 as fighting continued on the Israel-Lebanon border. The U.S., Europe and Arab countries pledged to forge a plan to persuade Israel and Hezbollah to put down their guns. The deal, however, fell short of an immediate cease-fire.

METALS: Gold climbed to a six-day-high of $628.35 a troy ounce on follow-through buying from the overnight New York session and Japanese buying interest. Ellison Chu, senior manager at Standard Bank in Hong Kong, said gold is likely to stay between resistance at $630-$632/oz and support at $618-$620/oz for now. LME 3-month copper was at $7,445/ton, up just $5.

OTHER NEWS: Japan's finance minister, Sadakazu Tanigaki, told Prime Minister Junichiro Koizumi on Thursday that he plans to enter the campaign to succeed the premier when his term ends in September.

China's economic growth in the January-September period is likely to slow to 10.8%, the country's economic planning agency said Thursday.

EUROPEAN OUTLOOK: Shares To Edge Higher

Euro-USD 1.2725 gain 0.0015 up 0.1%
Stlg-USD 1.8547 gain 0.0005 up 0.03%
USD-Franc 1.2401 loss 0.0011 dn 0.09%
(All values as of 0450 GMT)
European shares and government debt are set to struggle higher at the open, while the euro holds overnight gains.

STOCKS: Investors are likely to bid shares slightly higher to start, despite the late selloff on Wall Street. However, a heavy earnings slate is likely to dictate the direction of the markets.

U.K. spreadbettor Cantor Index is calling the FTSE up 11 points at 5888, the DAX up 8 at 5591 and the CAC up 5 at 4948

The market gains could continue, said Peter Dixon, an economist at Commerzbank Corporates & Markets. "In the short-to-medium term, 'up' would be my general view."

He said that the markets' recent selloff was unjustified on valuation grounds and has left the market fairly well-valued.

The German Ifo business-climate poll for July fell slightly and just below economist expectations. Dixon said that the IFO data indicates that exporters generally remain fairly optimistic about the future, which in turn reinforces a relatively buoyant view for the short term.

In corporate news, EMI Group is expected to say today that it is no longer pursuing a $4.6 billion proposal to buy Warner Music Group, according to The Wall Street Journal.

ABB Thursday beat forecasts with second quarter net profit that more than doubled to $367 million from the year-earlier level, boosted by continued strong demand for automation and power equipment.

European stocks edged higher Wednesday, as earnings from companies such as Reuters and Syngenta helped compensate for some losses in the automotive sector after Peugeot warned about the growing impact of higher prices for raw materials.

FOREX: The euro is extending gains against the dollar, related to spill-over from the near all-time-high levels in that euro/yen pair. Traders pointed to the strong surge in the pound/yen pair as well as being a major driver in sterling strength versus the dollar.

BONDS: European government debt is likely to open slightly higher in price, as recent economic data, such as the Ifo, indicate a peak and consequently bund yields may lack much upside.

"We are trading within a range of 3.90% to 4.15% or so in the 10-year bund yield, which we have trading since April or so...more and more it seems that this range is the top range of yields we have to expect for the current business cycle, and I think the Ifo index confirms this view," said Kornelius Purps, a strategist at HVB in Munich.

"I think we're starting to see the first cracks beginning to appear in Germany's business confidence boom," said David Brown, chief European economist at Bear Stearns in London.

"Chickens are coming home to roost on issues like high oil prices, a strong euro, the ECB's aggressive tightening intentions, and generally doubts are starting to creep in about the strength of the upturn, especially next year after the VAT hike sweeps through Germany," he said.

Looking ahead, analysts said the lack of European data Thursday meant the market would look for direction from U.S. durable good orders figures at 1230 GMT and new U.S. home sales numbers at 1400 GMT, ahead of Friday's more important U.S. second quarter gross domestic product numbers.

European government bond prices fell Wednesday as bunds and gilts were hit by a smaller-than-expected drop in German Ifo business confidence data and a tepid German 30-year bund auction, analysts said.

(MORE TO FOLLOW) Dow Jones Newswires

July 27, 2006 01:45 ET (05:45 GMT)

27 Jul 2006 05:45 GMT =DJ EUROPEAN MORNING BRIEFING: Stocks To Struggle Higher -2-

CALENDAR: Thursday, July 27: US Durable Goods, Jobless

GMT Expected Previous
0600 GER Aug GfK Consumer Sentiment Survey 7.8 7.8
0800 ITA June Hourly Wages 0.2%MM 0.0%MM
1230 US June Durable Goods +2.0% -0.2%
1230 US July 22 Jobless Claims +6K -30K
1335 US Pres Bush signs extension on Voting
Rights Act in Washington
1400 US June New Home Sales -6.4% +4.6%
1400 US July 15 DJ-BTMU Business Barometer +1.1%
1400 US June Conference Board Help-Wanted Index 33
1430 US July 21 US Energy Dept Natural Gas Stocks (in +23 +59
billion cubic feet)
1500 US June Kansas City Fed Mfg Index 23
1600 US June Chicago Fed Midwest Mfg Index -0.2%
1740 US Pres Bush addresses Natl Assn of
Manufacturers in Washington
2030 US July 21 Money Supply
2200 FRA June Unemployment 9.1% 9.1%
-25K -45K

-By Dennis Baker; Dow Jones Newswires; [email protected]

(MORE TO FOLLOW) Dow Jones Newswires

July 27, 2006 01:45 ET (05:45 GMT)

27 Jul 2006 05:45 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events

Abertis Infraestructuras (ABE.MC): 1H Earnings
Average net profit (Co, 19 analysts): EUR215.7M (EUR215.2M)
Average sales: EUR1.53B (EUR895.3M)
Average EBITDA: EUR967M (EUR562.2M)
Note: Profits seen squeezed by greater financing costs linked to recent acquisitions. 1H sales seen +71%, boosted by the acquisition of Sanef (415156.FR). Focus on Autostrade (AUTO.MI) merger plan updates. Report due pre-market.

Actividades de Construccion y Servicios (ACS.MC): 1H Earnings
Average net profit (DJ, 4 analysts): EUR352.2M (EUR272.5M)
Average EBITDA: EUR585.5M (EUR501.5M)
Average sales: EUR6.57B (EUR5.72B)
Note: Profits seen backed by recovery in core construction operations, services and contributions from partially owned companies. Focus will be on margins and construction orders. Report due after markets close.

Aker Kvaerner (AKVER.OS): 2Q Earnings
Average net profit (DJ, 3 analysts): NOK387M (NOK103M proforma)
Note: Analysts watching out for improving margins and possible near-record order intake close to NOK15 billion. Operating profit seen +44% to NOK638M from NOK441M in 2Q 05.

Alcatel (ALA): 2Q Earnings
Average net profit (SME Direkt, 15 analysts): EUR169M (EUR196M)
Average revenues: EUR3.4B (EUR3.15B)
Note: Revenues buoyed by good performance at its fixed-line unit. Net profit is negatively affected in the quarter due to stock related costs and restructuring totaling an estimated EUR46 million. Investors to eye further info on merger plans with Lucent (LU) and comments market growth prospects, margin pressure.

AngloGold Ashanti (ANG.JO): 2Q Earnings
Average adjusted EPS: ZAR4.15-ZAR4.49 (ZAR2 in 1Q)
Note: Analysts expect slightly higher production numbers. Say hedge book is the major question mark. One analyst sees hedge sliding to $10-15 below spot prices, from $10 below spot in 1Q.

AstraZeneca (AZN): 2Q Earnings
Average operating profit (DJ, 12 analysts): $2.06B ($1.7B)
Average sales: $6.57B (up 7.2%)
Average EPS: $0.95 ($0.75)
Note: AstraZeneca is expected to continue to benefit from growth in key products including heartburn drug Nexium, antipsychotic Seroquel, asthma inhaler Symbicort and cholesterol drug Crestor. These drugs should continue to offset the decline of sales of Prilosec, an older ulcer medicine, and failed cancer treatment Iressa.

Some analysts hope AstraZeneca may revise its forecasts on the back of continued growth from Nexium and Crestor, combined with the absence of long-threatened generic competition for Toprol XL, a blood pressure drug. AstraZeneca is currently forecasting full-year earnings per share of $3.60-$3.90, which include the effect of Toprol XL's generic copies if they are launched this year.

An eventual upgraded guidance would help lift further the current positive sentiment toward the stock, which benefited from the earlier-than-expected U.S. approval of asthma inhaler Symbicort late last week. Investors will also likely scrutinize prescription trends for Crestor, following the patent expiration of Merck's (MRK) rival cholesterol drug Zocor last month, as well as Seroquel and Nexium following strong first-quarter sales. AstraZeneca's earnings will be released at 1000 GMT.

Banco Sabadell (SAB.MC): 2Q Earnings
Average net profit (DJ, 6 analysts): EUR127.4M (EUR110M)
Average net interest income: EUR263.6M (EUR238M)
Note: Strong lending and improving asset yields seen driving revenues in 2Q, although this lending growth will likely prompt higher provisions, analysts say. Spreads are again expected to suffer slightly, as they did in 1Q.

Bradford & Bingley (BB.LN): 1H Earnings
Average pretax profit before items (Co, 15 analysts): GBP162.4M (GBP150M)
Note: No surprises are expected from Bradford & Bingley since the mortgage bank gave a first half trading update only a month ago. Bradford & Bingley operates in the specialized mortgage lending market for "buy-to-let" properties, which means it may be even better placed in the current market, say analysts at Keefe, Bruyette and Woods. They see the company as "a significant beneficiary of the better-than-expected housing market," with buy-to-let investors' confidence fuelling specialist loan growth at a rate that is three times that of the mainstream mortgage market, supported by good cost control.

Negative issues that could affect results include the bank's excess loan growth over deposit growth, which could mean pressure on funding spreads and a higher wholesale borrowing requirement. KFW, which has a market perform rating and 450 pence price target on Bradford & Bingley, also sees potential for it to lose market share to peers, though this is more of a second half concern.

The real challenge will be in the second half, analysts say, when the Bank of England may be tempted to resume raising interest rates if the housing market continues to heat up, thereby slowing the bread and butter businesses of all three. In a preview of earnings, analysts at UBS noted "even without a rate rise from the Bank of England, the proportion of take-home earnings taken up by mortgage interest payments at the average household will be close to a 15-year high by the end of 2006, at 47.3%." A further 25 basis-point rate rise would push this "above the top of its historical range" and suggest a slowing in the second half, UBS said.

British American Tobacco (BTI): 1H Earnings
Average earnings per share before items (DJ, 3 analysts): 46.3p (41.65p)
Average operating profit before items: GBP1.38B (GBP1.23B)
Note: The EPS forecast is ahead of BAT's own target of "high single digit" EPS growth in the medium term. JP Morgan said in a recent note that BAT was trading well above trend and has "one of the strongest trading outlooks for 10 years." The strong figures are a result of the company's continued growth in Latin America, Asia Pacific, Africa and the Middle East. UBS is forecasting double digit earnings growth in these markets.

The company's more mature markets are expected to post resilient performances, with cost savings and favorable pricing offsetting declining volumes. Canada is one area of concern, with analysts keen to hear the company's plans on combatting weak trading conditions and the onset of public smoking bans. Analysts will also be looking for news on the company's reported plan to buy out minority shareholders of Souza Cruz (CRUZ3.BR) - its 75%-owned Brazilian subsidiary.

BT Group (BT): 1Q Earnings
Average revenue (Co, 10 analysts): GBP4.84B (GBP4.73B)
Average underlying pretax profit: GBP550M (GBP510)
Average EBITDA: GBP1.39B (GBP1.36B)
Note: Analysts say the company is facing increasing pressure from broadband competition and slowing public-sector spending. Dresdner Kleinwort says BT faces increasing pressure from NTL (NTLI). British Sky Broadcasting Group (BSY) and Orange S.A., a unit of France Telecom (FTE), are also gearing up to launch "quad-play" services to customers. BT is planning to respond with the autumn launch of its own digital-TV and video-on-demand service, BT Vision, having already announced content deals with British Sky Broadcasting, Universal Pictures, Paramount, Endemol, DreamWorks and Warner Music Group.

And while BT has launched its BT Fusion product, which allows call migration between fixed and mobile handsets, analysts have questioned the company's lack of ownership in the mobile operator market, after it spun off its BT Cellnet mobile operations, which are now owned by Telefonica S.A. (TEF). Credit Suisse, which has an underperform rating on the shares, said first-quarter results follow upbeat guidance from BT. But Credit Suisse will look for an update on performance in BT's Global Services division, which supplies information-technology services and is heavily exposed to the U.K. public sector, where a widespread procurement freeze has already hurt the results of other IT companies.

Bulgari (BUL.MI): 2Q Revenue
Average pretax profit (DJ, 5 analysts): EUR231.7M (EUR209.8M)
Note: They say they expect a pickup in perfumes division compared with 1Q 06 on US product launches. Jewelry and watches seen extending good run in 1Q 06. But no change expected in full-year guidance of high single-digit perecentage growth in revenue and earnings. Numbers expected after market closes Thursday.

Capgemini (12533.FR): 2Q Revenues
Average revenue (DJ, 4 analysts): EUR1.89B (EUR1.76B)
Note: Growth should be led by the UK market, followed by France, while revenue in Nordic countries and Southern countries is expected to decline, analysts say.

Centrica (CNA.LN): 1H Earnings
Average pretax profit (DJ, 7 analysts): GBP 597.5M (GBP892M)
Average EPS: 6.5p (11.9p)
Average dividend: 3.2p (3.1p)
Note: The fall is attributed to a range of factors including high winter wholesale gas prices and operational difficulties in Centrica's Home Services business. Analysts will await outlook comments on potential UK gas supply tariff increases during 2H, and closely monitor any news on its US assets.

(MORE TO FOLLOW) Dow Jones Newswires

July 27, 2006 01:45 ET (05:45 GMT)

27 Jul 2006 05:45 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events -2-

DaimlerChrysler (DCX): 2Q Earnings
Average net profit (DJ, 7 analysts): EUR835M (EUR737M)
Average revenues: EUR39.56B
Note: The company's closely watched operating profit is expected to be down 0.9% on the year at EUR1.66 billion in the second quarter as higher earnings at its Mercedes Car Group division fail to offset a sharp decrease at Chrysler Group amid sluggish vehicle sales and aggressive rebates on the U.S. market.

Analysts expect Chrysler Group to eke out EUR85M operating profit, down from EUR544M in the second quarter last year. The outlook for the U.S. market will be in the limelight as well as the division's current level of inventories and costs for an upcoming launch of new models. Mercedes Car Group is expected to post EUR501M operating profit, up sharply from EUR12M last year.

DaimlerChrysler's second-quarter earnings will be impacted by several one-off items related to the company's wide-ranging restructuring efforts. Implementing a new management model and cutting 6,000 general and administrative staff worldwide will lead to a charge of EUR500M in full-year 2006, but DaimlerChrysler so far didn't say when and in which division the charges could be booked. The ongoing restructuring of Smart will burden results by around EUR1B this year, of which EUR982M were booked in the first quarter already. The headcount reduction at Mercedes Car Group will lead to a EUR400M charge in 2006, of which the company booked EUR203M in the first quarter.

DaimlerChrysler's truck division is expected to remain the company's biggest earnings contributor with EUR438M operating profit in the second quarter, up from EUR410M in the same period last year. Forecasts for the truck markets in 2007 will be in focus after rivals warned of a downturn following strong sales in 2006.

DaimlerChrysler's Chief Executive Dieter Zetsche plans to turn scale into earnings and make the division the world's most profitable truck maker. The company intends to introduce a modular components system in an effort to create more synergies between the different brands and streamline its cost structure to prepare for the expected cyclical slowdown in demand for new trucks. DaimlerChrysler's financial services division is expected to contribute EUR388M to the group's operating profit, about the same level as last year. DSM (00982.AE) is expected to report 2Q net profit of EUR154M, according to the average of forecasts from four analysts. This is 25% above EUR123M a year earlier, a figure hit by a one time charge of EUR14M the company had to take in 2Q '05. Operating profit from continued operations is seen 9.5% higher at EUR230M from EUR210M. Sales are expected to come in at EUR2.1B from EUR1.98B in 2Q a year earlier. Analysts are on the lookout for underlying developments at the Nutrition unit and the restructured Anti Infectives unit, and the outlook for 3Q '06. Data due Thursday at 0615 GMT. Shares +1.1% at EUR33.55. (AST/TJW)

DSM (00982.AE): 2Q Earnings
Average net profit (DJ, 4 analysts): EUR154M (EUR123M)
Note: Last year's figure was hit by a one time charge of EUR14M the company had to take in 2Q '05. Operating profit from continued operations is seen 9.5% higher at EUR230M from EUR210M. Sales are expected to come in at EUR2.1B from EUR1.98B in 2Q a year earlier. Analysts are on the lookout for underlying developments at the Nutrition unit and the restructured Anti Infectives unit, and the outlook for 3Q '06. Data due at 0615 GMT.

EADS (5730.FR): 2Q Earnings
Average net profit (DJ, 6 analysts): EUR482M (EUR488M)
Average EBIT: EUR865M (EUR881M)
Note: While Airbus deliveries are running higher this year the company is being hit by a weaker US dollar and losses at Sogerma Services unit. Focus is on whether the company will change EBIT guidance for full year and make any to A380 cost overruns and delays announced in mid-June.

Energias de Portugal (EDP): 1H Earnings
Average net profit (DJ, 3 analysts): EUR347M (EUR318M)
Note: EBITDA is expected to be unchanged to slightly higher, seen at EUR1.03B, with an improved performance in renewables being offset by a worse performance in generating and supply. Report due 1530 GMT.

Fomento de Construcciones y Contratas SA (FCC.MC): 1H Earnings
Average net profit (DJ, 3 analysts): EUR247M (EUR193M)
Average EBITDA: EUR549.6M (EUR453.7M)
Average sales: EUR3.85B (EUR3.31B)
Note: Profits seen backed by solid organic growth and recent acquisitions. Focus on margins, waste management operations.

France Telecom (FTE): 1H Earnings
Average net profit (DJ, 5 analysts): EUR2.41B (EUR3.4B)
Average EBITDA: EUR9.5B (EUR9.3B)
Average sales: EUR25.8B (EUR23.7B)
Note: The fall in the net profit was due to France Telecom's declining market share in the fixed line business but analysts also note that net profit for 1H 05 was boosted by a EUR1.2B gain from the sale of stakes in PagesJaunes (1009635.FR) and Mobilcom (MOB.XE).

Hugo Boss (BOS.XE): 1H Earnings
Average net profit (DJ, 5 analysts): EUR53.5M (EUR45.5M)
Average EPS: EUR0.77 (EUR0.64)
Average sales: EUR700.5M (EUR624.3M)
Note: 2Q earnings are traditionally weak, but analysts are watching 2Q revenue with an eye on full-year targets. In April company raised 2006 forecast to 10%-12% growth in sales and net profit from previous growth forecast of 7%-9%.

Lagardere Media (13021.FR): 1H Revenue
Average sales (DJ, 7 analysts): EUR3.77B (EUR3.73B)
Note: First half revenue will benefit from a good performance at the group's distribution unit HDS and from a slightly positive growth at the books division, analysts say. By contrast, growth should remain sluggish at the magazines division and at Lagardere Active. Analysts will be looking for an update on the group's guidance for the year, especially on its top line.

Legal & General's (LGEN.LN): 1H Earnings
Average EEV operating profit (Co, 14 analysts): GBP565M (GBP465M)
Note: Dividend of 1.73p, +4.8% from 1.65p in 1H 05 and based on 11 analysts' estimates. Keefe, Bruyette & Woods says UK new business contribution +25% to GBP161M is the main driver, with life and pensions sales strong and improved APE margins of 32.2% versus 30.3% for 1H 05.

Lufthansa (LHA.XE): 1H Earnings
Average net profit (DJ, 8 analysts): EUR92M (EUR200,000)
Average operating profit: EUR239M (EUR253M)
Average sales: EUR9.46B (EUR8.45B)
Note: Profit rise due to improvements in business units Thomas Cook and Sky Chefs. Sales seen up 12%, partly due to the soccer World Cup which contributed to stronger passenger numbers earlier in the year. Also, "freight and catering documented improved results," an analyst says. Additionally, observers are anxious to learn about fuel cost effects.

Luxottica (LUX): 2Q Earnings
Average net profit (DJ, 4 analysts): EUR114.5M (EUR91.1M)
Note: With the company having indicated in June it might have to review full-year guidance after strong January-May sales in both wholesale and retail segments of its business, most analysts are predicting at least a 5% upgrade for Luxottica's 06 EPS target range from the current EUR0.89-0.91. Numbers due toward market close Thursday.

(MORE TO FOLLOW) Dow Jones Newswires

July 27, 2006 01:45 ET (05:45 GMT)

27 Jul 2006 05:46 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events -3-

M6 Metropole Television (5322.FR): 1H Revenue
Average sales (DJ, 7 analysts): EUR640.1M (EUR541.6M)
Note: Both figures exclude sales from M6's stake in TPS which the group is currently selling. Advertising revenue should grow 4.7% to EUR349M compared to EUR333.4M a year earlier thanks notably to a good performance from the French football team during the World Cup. Analysts also expect a good performance from diversification owing to the consolidation of the subsidiary Mistergoodeal.com and the growing contribution coming from M6 Mobile. They will be looking for an update on the group's 06 guidance following a pickup in advertising revenue, and on 06 programming costs.

Pirelli (PC.MI): 1H Earnings
Average EBIT (DJ, 6 analysts): EUR218M (EUR202M)
Average sales: EUR2.4B (N/A)
Note: The moderate rise is expected to have been driven by growth in the broadband solutions unit. Analysts expect the cost of the cancelled IPO of its tire unit to be around EUR15M. Net debt is seen at EUR1.6B, up 8%. Company is expected to release final figures on September 12.

PPR (12148.FR): 2Q Revenue
Average sales (DJ, 6 analysts): EUR4.03B (EUR3.99B)
Note: Analysts expect the company's luxury division to post double digit growth, tracking 1Q performance. Retailing sales growth is seen weaker and analysts expect lower figures than its EUR3.6B in 1Q sales. The World Cup, a later French sales season and the sale of Printemps are among factors seen affecting the division.

Publicis Groupe (13057.FR): 1H Earnings
Note: Standard & Poor's sees Publicis posting 1H 06 revenue of EUR2196M, +14% on 1H 05 revenue of EUR1,932M. Organic revenue growth for the full year forecast at 6.2%. Publicis shares have been weighed down by large account losses, but seen improving in the second half. Margins seen under pressure in the first half due to the set up costs of business won in 05.

Reed Elsevier (RUK): 1H Earnings
Average pretax profit (DJ, 5 analysts): GBP433M (GBP395M)
Average sales: GBP2.549B (GBP2.368B)
Note: With Elsevier Science and Lexis Nexis units driving revenue growth. EPS seen climbing 12% to 13.8p, from 12.3p. Analysts and investors will be looking for updates on the performance of Reed's education unit Harcourt following revenue declines in 2005.

Renault (13190.FR): 1H Earnings
Average operating profit (DJ, 6 analysts): EUR551M (EUR943M)
Average net profit: EUR1.29B (EUR2.17B)
Average sales: EUR21.79B (EUR21.32B)
Note: Operating margin seen 2.5% vs 4.4%. Analysts looking for 2H guidance and operating margin targets for FY 07 and FY 08, as well as details of talks on link-up with General Motors (GM).

Repsol (REP): 2Q Earnings
Average net profit (DJ, 6 analysts): EUR859.2M (EUR805M)
Note: High oil prices seen partially offsetting another quarter of shrinking oil equivalent production, as gas output fails to offset falling Argentinean oil production and also falling production as a result of contract renegotiation in Venezuela. Falling refining margins seen cutting into earnings. Focus will be on latest exploration and production acquisitions and future buys. Also on partial listing of Argentinean YPF unit. Results due pre-market Thursday.

Richter's (RICHTER.BU): 2Q Earnings
Average net profit (Portfolio, 8 analysts): HUF13.45B (HUF10.78B)
Average operating profit: HUF10.19B (HUF9.6B)
Average sales: HUF42.56B (HUF38.11B)
Note: Net profit is forecast +25%. Rise is mostly attributed to net financial gains as operating profit is only expected 6% higher. Richter to benefit from weaker HUF both on top and bottom lines. Revenues seen +12% as HUF was 7% weaker than year ago and 70% of revenues are generated in dollars. Company to report Thursday morning.

Rolls-Royce (RR.LN): 1H Earnings
Average pretax profit (DJ, 3 analysts): GBP307M (GBP 260M)
Note: Company is benefitting from strong demand for installed commercial aircraft engine servicing and spares as well as new engines. Full year profit guidance in focus as is the company's plans to supply a new engine on Airbus' A350 XWB mid-sized aircraft.

Royal Dutch Shell (RDSB.LN): 2Q Earnings
Average adjusted net profit (DJ, 4 analysts): $6.07B ($5.17B)
Note: Adjusted net profit - the figure most closely watched by analysts - strips out the impact of oil prices on inventories. Shell's profit got a boost from an industry average 35% annual rise in oil prices during the second quarter, which averaged $69.53 a barrel for benchmark North Sea Brent crude compared with $51.63 a barrel a year earlier.

Broker NCB, which rates the stock "accumulate", says "exposure to record refining margins in U.S. and near records in Asia gives Shell the prospect of exceptionally strong performance in the second quarter." Societe Generale, which rates the stock "underweight", expects "a very good quarter." But it warns "the sharp increase in costs arising from the company's numerous projects could lead Shell to increase (capital expenditure) post-2007 or downgrade its production profile."

Saint-Gobain (12500.FR): 1H Earnings
Average net profit (DJ, 5 analysts): EUR826M (EUR632M)
Average operating profit: EUR1.77B (EUR1.37B)
Note: Look for company to lift full-year guidance above current forecast of 25% operating profit growth, 18%-20% net profit growth excluding asset sales, analysts say.

Santander Central Hispano (STD): 2Q Earnings
Average net profit (DJ, 6 analysts): EUR1.644B (EUR1.375B)
Average net interest income: EUR3.02B (EUR2.6B)
Note: Bank seen benefiting from strong expansion in Spain and Latin America, while Abbey ought to show continued progress in cost cutting, analysts say. Analysts will particularly watch our for news on the Spanish retail market for signs of continuing momentum.

Siemens (SI): 3Q Earnings
Average net profit (DJ, 11 analysts): EUR804M (EUR389M)
Average sales: EUR21.038B (EUR18.750B)
Average new orders: EUR22.699B (EUR19.935B)
Note: Last year's profit included a EUR236M loss at the mobile phone unit which has since been sold to Taiwan's BenQ Corp. (2352.TW). The company is still battling to achieve its operating margin goals, as only six of the eleven divisions are expected to have hit profitability targets. Siemens has operating profit margin goals for its eleven divisions of between 4% and 13%, to be reached by April 2007.

On top of that, the operating profit margin is expected to have dropped at core units such as Power Generation and Automation and Drives, while profit margins at other core divisions such as Lighting and Medical Equipment are expected to have stayed flat. Some analysts have suggested that Siemens should appoint a COO, which should help to accelerate the company's efforts to run more efficiently. Nevertheless, CEO is expected to reiterate the company's operating margin goals, and analysts hope for more measures to be announced to turnaround the SBS unit. Siemens reports earnings around 0600 GMT.

Skanska (SKA-B.SK): 2Q Earnings
Average pretax profit (SME Direkt, 7 analysts): SEK1.96B (SEK1.37B)
Note: Profit supported by higher gains from property divestment and continued strong demand in the Nordic construction market. Additionally, no extra costs are expected to weigh on the result, while 2Q '05 was hurt by a one-off cost of SEK180M. Revenue is seen rising to SEK32.56B from SEK30.92B a year ago. Focus in the report is on the outlook for the US, and especially with regards to cost increases.

Smith & Nephew (SNN): 2Q Earnings
Average sales (Co, 6 analysts): $662M-$685M range ($642M)
Average adjusted earnings: $97M-$102M ($97M)
Note: Since Smith & Nephew has already flagged flat 2Q growth with sales picking up in 2H thanks to new product launches, analysts will focus on whether the company will be able to stick to its earlier guidance. Results due at 1000 GMT.

Technip (13170.FR): 2Q Earnings
Average net profit (DJ, 4 analysts): EUR50M (EUR33.3M)
Average EBIT: EUR83.4M (EUR66M)
Average sales: EUR1.67B (EUR1.33B)
Note: Technip's margin to continue to suffer from rising raw material and outsourcing costs, analysts say. "We continue to have concerns about execution of on-shore contracts," Credit Suisse analyst Katherine Tonks says.

Telecinco (TL5.MC): 2Q Earnings
Average net profit (DJ, 5 analysts): EUR107.6M (EUR111.3M)
Average EBITDA: EUR159.9M (EUR165.5M)
Average sales: EUR296.2M (EUR295.8M)
Note: Lower audience share and calendar effects are expected to have hurt advertising income. Focus will be on guidance and advertising market outlook.

(MORE TO FOLLOW) Dow Jones Newswires

July 27, 2006 01:46 ET (05:46 GMT)

27 Jul 2006 05:46 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events -4-

Telefonica (TEF): 2Q Earnings
Average net profit (DJ, 6 analysts): EUR1.17B (EUR923M)
Average operating income before depreciation and amortization: EUR4.62B
(EUR3.2B)
Average revenue: EUR13.07B (EUR8.97B)
Note: Spotlight will be on the company's domestic fixed-line unit Telefonica de Espana. Telefonica de Espana has managed to keep solid topline growth over the last quarters, avoiding the pitfalls encountered by the fixed-line units of European former monopolies, due to its success in the Internet access market. Analysts will look for indications on the evolution of Spain's competitive environment, as fixed-line operators like Jazztel PLC (JAZ.MC) and new mobile entrants such as TeliaSonera AB's (TLSN.SK) Xfera try to gain market share from Telefonica.

Television Francaise 1 (5490.FR): 1H Revenue
Average sales (DJ, 7 analysts): EUR1.37B (EUR1.47B)
Note: 1H revenue is excluding sales from TPS which the group is currently selling. Including the consolidation of the TPS stake, TF1 revenue would have grown 6.8% to EUR1.57B. Advertising revenue should grow 5.8% to EUR932.6M from EUR881.2M, thanks notably to a good performance from the French football team during the FIFA World Cup. Analysts also expect a good performance from diversifications owing to strong sales from home-shopping. They will be looking for an update on 2006 guidance as they expect advertising momentum to remain robust in the coming quarters, especially with the opening of TV advertising to the retail sector in 2007.

Thales (12132.FR): 1H Earnings
Average net profit (DJ, 4 analysts): EUR170M (EUR176M)
Average sales: EUR4.77B (EUR4.74B)
Note: Analysts expect the company to take restructuring charges, which will hit net profit. Also, the restructuring of the naval division means certain programs are being shut down while others are waiting to ramp up. "By 2007 we should see revenues start to grow again," a Paris based analyst says.

Thomson (18453.FR): 1H Revenue
Average group sales (Co, 16 analysts): EUR2.7B (EUR2.97B)
Average core sales: EUR2.61B (EUR2.8B)
Average group EBIT: EUR135M (EUR176M)
Average core EBIT: EUR110M (EUR65M)
Note: The fall in revenues due to weak USD and poor performance in Services and Systems and Equipment divisions, analysts say. Also development costs of set top box could hit earnings.

UCB (UCB.BT): 1H Earnings
Average net recurring profit (DJ, 4 analysts): EUR176.5M (EUR165M)
Average net profit: EUR1.26B (EUR1.18B)
Note: Analysts watch for news on Xyzal marketing strategy through a JV in the US; see Keppra being company's main driver. They predict royalties will fall 28% to EUR104M from EUR144M as Boss antibody technology patent ends.

UPM-Kymmene (UPM): 2Q Earnings
Average net loss (SME Direkt, 14 analysts): EUR62M (EUR23M net profit)
Average sales: EUR2.48B (EUR2.25B)
Note: Net loss was due to booking about EUR130M in non-recurring items related to its restructuring program launched in March. Sales on for the quarter are seen increasing 10% due to higher paper prices. Eyes are on further provisions for staff reductions, changes in forest asset values and effects from increasing energy costs.

Vedior (39085.AE): 2Q Earnings
Average net profit (DJ, 4 analysts): EUR51M (N/A)
Forecast range: EUR44.7M - EUR49.1M
Note: Company had exceptional gain of EUR15 million on sale of a unit during quarter. Results supported by improving markets in France, acquisitions and better margins in US. Focus is on comments about prospects US, French markets. Numbers due 0500 GMT Thursday.

Vivendi (V): 1H Revenue
Average sales (DJ, 7 analysts): EUR9.55B (EUR9.13B)
Note: First half revenue will benefit from a strong set of figures at Maroc Telecom and at Vivendi's games unit, while mobile unit SFR is expected to post a dull performance, analyts say. They will be looking for any progress on the group's acquisition policy after it recently pulled out from the bidding process for France Telecom's directory business, PagesJaunes. They will also be looking for an update on the legal battle for Poland's largest mobile operator, PTC.

Volkswagen (VOW.XE): 2Q Earnings
Average net profit (DJ, 9 analysts): EUR824M (EUR333M)
Note: Analysts note net profit has been inflated by a one-off gain from its Europcar sale earlier in '06. Sales seen +9.1% at EUR27.16B from EUR24.9B in light of renewed model portfolio. Operating earnings before special items seen up 22% to around EUR1.1B from EUR0.9B, but adjusted for costs of restructuring core brand VW, operating profit is seen at EUR322M, analysts note. The company would be likely to post an operating loss if it wasn't for cost savings program ForMotion, says analysts. Company is expected to provide an update on restructuring efforts, but without giving financial details of talks with unions, while analysts don't expect updated '06 guidance.

Vossloh AG (VOX.XE): 2Q Earnings
Average net profit (DJ, 5 analysts): EUR1.6M (EUR13.1M)
Average sales: EUR252.6M (EUR253.7M)
Note: Net profit for the year earlier had restructuring costs and a rejection by the Cartel Office of its plans to take over Pfleiderer Track Systems. Vossloh has twice reduced its '06 earnings forecast. It now sees '06 EBIT at EUR70.3M and net profit at EUR35.6M. Analysts eye ongoing strategy review for further restructuring costs.

Wincor Nixdorf (WIN.XE): 3Q Earnings
Average pretax profit (DJ, 7 analysts): EUR20.3M (EUR15.6M)
Average EBITDA: EUR49.7M (EUR43.9M)
Average sales: EUR480.7M (EUR423.9M)
Note: Analysts expect the company to confirm full-year forecast of EBITDA growth of 15% to EUR157M and sales +10% at EUR1.92B.

(MORE TO FOLLOW) Dow Jones Newswires

July 27, 2006 01:46 ET (05:46 GMT)

27 Jul 2006 05:46 GMT =DJ EUROPEAN MORNING BRIEFING: Corporate Events -5-

OTHER SCHEDULED EVENTS:

AT&S (AUS.XE): 1Q Earnings

Banco BPI (BPI.LB): 1H Earnings

Bank of Cyprus (BOC.CP)

Billerud (BILL.SK): 2Q Earnings

Blom (BLO.OS): 2Q Presentation

Brio (BRIO-B.SK): 1H Earnings

BSS Group (BTSM.LN): AGM

Carlo Gavazzi Holding AG (GAV.EB): AGM

Carphone Warehouse Group (CPW.LN): Trading Update

Completel Europe (5506.FR): 2Q Earnings

Dassault Systemes (13065.FR): 2Q Earnings

De La Rue (DLAR.LN): AGM

Exact Holdings (35036.AE): 1H Earnings

Fujin Technology (FJN.LN): 1H Earnings

Gant Company (GANT.SK): 2Q Analyst Meeting

Generale de Sante (4447.fr): 2Q Revenue

Gestevision Telecinco SA (TL5.MC): 2Q Presentation Webcast

Hansteen Holdings (HSTN.LN): 1H Earnings

Havas (12188.FR): 1H Earnings

Hyder Consulting (HYC.LN): AGM

Hyparlo (6173.FR): 2Q Revenues

ILOG (404236.FR): FY Earnings

Infovista (403164.FR): 4Q Earnings

Invesco Asia Trust (IAT.LN): AGM

JJB Sports (JJB.LN): Trading Update & AGM

Kemira GrowHow Oyj (KGH1V.HE): 2Q Earnings

Kemira (KRA1V.HE): 2Q Earnings

Kingfisher (KGF.LN): Trading Update

Kredyt Bank (KRB.WA): 1H Earnings

Landsbanki (LAIS.IC): 1H Earnings

Liberty International (LII.LN): 1H Earnings

London Merchant Securities (LMSO.LN): AGM

Metso (MEO1V.HE): 2Q Earnings

Misys (MSY.LN): FY Presentation Webcam

MITIE Group (MTO.LN): AGM

M-Real (MRLBV.HE): 1H Earnings

Nera (NER.OS): 2Q Earnings Presentation

Northumbrian Water (NWG.LN): AGM

Pennon Group (PNN.LN): AGM

Perlos (POS1V.HE): 1H Earnings

Petroleum Geo-Services (PGS.OS): 2Q Earnings

Rathbone Brothers (RAT.LN): 1H Earnings

Recordati (REC.MI): 1H Earnings

Remy Cointreau (13039.FR): AGM

Riber (7595.FR): 2Q Revenues

Scottish & Southern Energy (SSE.LN): AGM

Shanks Group (SKS.LN): AGM

Suedzucker (SZU.XE): AGM

Trader Classified Media (5729.FR): 2Q Revenues

Vinci (12548.FR): Analyst Meeting & Conference Call

Wavecom (7306.FR): 2Q & 1H Earnings

Zeter (ZTR.LN): FY Earnings

(END) Dow Jones Newswires

July 27, 2006 01:46 ET (05:46 GMT)