Essilor International on Friday confirmed its 2010 targets in the light of a first half marked by a rebound in sales and a sharp rise in net profit excluding exceptional items.
The world leader in ophthalmic optics said he was always on full year growth of 5 to 7% of its turnover and a stable operating margin over the rate of 18.2% achieved last year, excluding currency effects, acquisitions and strategic change IFRS.
"In the second half of 2010, in a context of renewed activity still fragile, Essilor will pursue the strict implementation of its strategy of growth based on new products, geographical expansion, acquisitions and organic conquer the environment range, "the company said in a statement.
Turnover rose 15.8% to 1,926.8 million euros in the first six months of the year, an increase of 5.9% excluding currency and strategic acquisitions.The Group's contribution margin – operating profit before share-based payments, restructuring costs and impairment of goodwill – came out in turn to 347.5 million (+15.2%), or 18.0% of turnover.
"This is broadly in line with my expectations, the guidance is unchanged, the activity in the U.S. looks a little worse than expected, but overall everything is online, perhaps there will he then some profit taking this morning, "said one industry analyst on condition of anonymity after the value.
The Essilor share opened down slightly from 0.22% to 48.09 euros, giving a market capitalization of about $ 10.3 billion.Since the beginning of the year, the title took 15.5%, after rising nearly 25% throughout 2009.
AN ALLOWANCE amputated NET
Essilor has continued in the first half an acquisition strategy by which it intends to strengthen in particular the emerging markets, with a total of 13 new partnerships. The period was marked in particular by integrating FGXI, a global eye preassembled "readers" and Signet Armorlite, producer and distributor of glasses of the Kodak brand, consolidated in March and April
Net income, Group share, declined by 1.3% to its 197.5 million euros, reflecting a provision of 41.5 million euros for the fine imposed by the German Competition (Bundeskartellamt) for cartel formation in optics.Essilor has filed two appeals which are suspensive payment of the fine.
Excluding this provision, the adjusted net profit stood at 238.8 million euros, an increase of 19.3% from one year to another.
Essilor has continued since the end of the semester its repurchase of shares on the market for an aggregate of 33.7 million euros. The group also conducted on July 2 at remboursemnet the balance of convertible bonds not yet converted. The bond issued in 2003 and is now mature longer listed on Euronext Paris.
The group also sold its stake August 9 history 15% in Group Sperian Honeywell, as part of the tender offer of U.S. conglomerate on the French specialist in personal protective equipment.The more consolidated capital gain, estimated at 27 million euros, will appear in the accounts of the second half.
The Japanese Minister of Finance has honed his arguments Wednesday on the strength of the yen after the Nikkei newspaper had reported that Tokyo would consider unilateral intervention on the foreign exchange market if speculators push the yen upwards.
While it should meet in the day Prime Minister Naoto Kan and other members of the Government, the Minister of Finance Yoshihiko Noda told reporters that he would intervene appropriately whether to do so, speech he had not taken up.
"When necessary shall have to act appropriately," he said in response to a question about the evolution of the yen.
Market participants, however, questioned the ability of unilateral intervention to contain the strong yen, which hit a high Tuesday of 15 years against the dollar and nine years against the euro and weighs heavily on the Stock Exchange Tokyo which closed Wednesday at a low of 16 months.
"The dollar fell to 83 yen, the probability of intervention has increased, but it would take more than intervention," said Kiichi Murashima, an economist at Citigroup Global Markets.
"This must be accompanied by an easing (of monetary policy) of the BoJ (Bank of Japan) to have any effect."
DOUBTS ON MEASURES TAKEN the radical
The soaring yen and the decline of the Tokyo Stock Exchange have increased the probability of announcing a further easing of monetary policy the Bank of Japan before its next meeting on interest rates scheduled for 6 and 7 September, Reuters said sources familiar with the matter.
Speculators doubt however that the BoJ is ready to take drastic measures.
"If they really want to do something about the yen (…) they must create the conditions to anticipate inflation," said Martin Schulz, senior economist at Fujitsu Research Institute.
"But I do not think the BoJ will move in that direction."
While it took nearly 10% since the beginning of the year against the greenback, against which it was trading around 5:45 GMT at 84.28 dollars, some investors believe the greenback could fall to a record high against the Japanese currency, at least 80 dollars.
So far the Japanese authorities tried to contain the strong yen by simple oral statements, the Minister of Finance stressed on Tuesday the growing irritation of Tokyo against the Japanese currency rise.
Now, about Yoshihiko Noda had the opposite effect to that intended, because dealers have so wanted to test the determination of Japanese authorities to stem the yen's appreciation.Why he decided to get tough on Wednesday.
EMERGENCY MEETING
Tokyo should be difficult to convince the United States and Europe to join its efforts on the foreign exchange market, weakening their own currencies being favorable to their exports.
Yoshihiko Noda declined to comment on rumors suggesting a possible meeting with Secretary of U.S. Treasury Timothy Geithner. The U.S. Treasury has not made any comments.
Japan is no longer intervened on the foreign exchange market since 2004.But the situation is becoming even more worrying than the Japanese export growth slowed to an annual rate in the fifth consecutive month in July.
According to an estimate of Nomura Securities, every increase of one yen against the dollar will result in a decrease of 0.9% of current earnings of major Japanese manufacturing groups for fiscal year 2010-2011, which will close in March.
According to sources close to the situation, the most likely scenario is that the BoJ will increase the size, or prolongs the duration of its mechanism of short-term financing in place in December.
The Nikkei newspaper wrote Wednesday that the BoJ intends to take further monetary easing and could do so in the context of an emergency meeting.
Zurich Financial Services, Fourth European insurer, has seen its profits decline by 10% in first half as a result of provisions for defective mortgage loans and an increase in claims, including the earthquake in Chile.
The net profit of down 16% to $ 1.64 billion in the first half, against $ 1.97 billion during the corresponding period of 2009, Zurich Financial announced Thursday, said in a statement.
Operating profit activities (Business Operating Profit, BOP) declined 10% to 2.23 billion against $ 2.55 billion.
These declines are attributed to 330 million of provisions recorded in the second quarter in commercial real estate in Great Britain and Ireland.
In the first quarter, the group had recorded $ 200 million because of the earthquake in Chile.
Total depreciation amounted to 763 million during the first six months of 2010.
Zurich Financial has, however gains in net capital investment and depreciation of 418 million.
As usual, ZFS did not provide guidance for the full year.
The combined ratio deteriorated to 98% at end June 2010 against 96.2% a year earlier, and return on equity has deteriorated to 11.5% after 17.6%.
The solvency ratio has however improved to 232% at the end of the period under review.
Business volumes have expanded from 3% to 34.9 billion dollars, and 1% in local currency.
Tokyo stocks ended virtually unchanged on Tuesday (-0.07%), caught between downward pressure related to the strength of the yen and satisfaction related to solid quarterly results and found the stronger than expected for Sales of new homes in the United States.
The Nikkei index closed at 9496.85 points while the broader TOPIX, took 0.03% to 846.12 points.
Home sales in the nine to the United States jumped from 23.6% in June is, in percentage, the stronger rebound since May 1980, reassuring investors about the risk of a relapse of the U.S. economy.
In terms of value, the manufacturer of household products Kao Corp. gained 1.1% to 2.111 yen after the announcement of an increase of 34.6% of its operating profit for the period April to June, to 26.17 billion yen (231 million euros).
In contrast, the continued strength of the yen continues to handicap the exporting groups.
The semiconductor equipment supplier Tokyo Electron, the semiconductor maker Advantest, and the carmaker Honda and decreased from 0.42 to 1.62%.
The pharmaceutical group Sanofi-Aventis, seeking a major acquisition, has approached the U.S. biotech Genzyme, we learn the source familiar with the matter.
Discussions are still in their infancy and there is no agreement expected in the immediate future, it says.Issues such as price and management have not yet been addressed, it adds.
The Wall Street Journal, which has revealed the information, officials of Genzyme, which specializes in products for the treatment of orphan diseases, are studying the amount that Sanofi would pay.
In Stock, Genzyme is 14 billion dollars (10.8 billion euros) but the group can require a significant premium given its portfolio of drugs, analysts said.
"If we take as a starting point the figure of 20 billion dollars that has been discussed before, this puts Genzyme to $ 75 (per share)," said Michael Yee, an analyst at RBC Capital Markets.
In exchange, the share of Genzyme blazed nearly 18% to 63.84 dollars at end of session.
Sanofi declined to comment.
Faced with competition from generic drugs, many pharmaceutical companies are looking for external growth.
In early July, the rumor gave Sanofi-Aventis, faces the expiration of patents on several important drugs, looking for acquisitions in the United States.
The sales of Sanofi made in the USA by its anticancer Eloxin fell sharply after the launch of generic versions, while its other cancer drugs, Taxotere, will drop its patent to the public in November in Europe and United States.
In late June, Sanofi announced the acquisition of American TargeGen for 560 million dollars (458.5 million euros) in order to strengthen the fight against cancer.
Late June-early July, the French laboratory has met its board of directors on the topic of acquisitions, had been taught to the time source familiar with the matter.
Friday, Biogen and Allergan, whose names had been mentioned as potential target for Sanofi alongside Genzyme, lost 5% and 2.5% in stock.
Technip Thursday confirmed its financial targets for 2010 despite the downturn in results in the second quarter and said it was too early to evaluate the impact of futures oil spill in the Gulf of Mexico on the group.
The French oil equipment specialist argued that the incident leaden with oil giant BP had induced a moratorium on drilling and that would delay short-term investment decisions.
The group believes nevertheless able to take its game to end by focusing on safety.
"In the longer term we believe that everywhere in the world, operators prefer to work with contractors who have maintained a constant effort of investment in security," he said in a statement Thierry Pilenko, CEO of the group.
Technip has repeated that he was a 2010 turnover of approximately 5.9 to 6.1 billion euros, with sales of Subsea (underwater infrastructure) of about 2.6 to 2.7 billion, a margin of this sector exceeds 15% and stable margins in its Onshore / Offshore.
The company posted second-quarter sales of 1.484 billion euros and a net profit of 106.1 million euros and an EBIT of 160.5 million, results above expectations analysts according to the group.
These three indicators have fallen from the second quarter of 2009 excluding the impact of exchange rate of 14.3%, 8.7% and 18.1% respectively.
The group's operating margin stood at 10.8%, against 11.3% during the same period last year.
The group had to cope with difficult market conditions, particularly with the collapse of the financial crisis in 2008 and falling prices of oil and gas that followed.
The contracts after this period were signed with strong pressure on margins and increased competition between operators.
In late June, the backlog of Technip progressed him to 8.263 billion euros against 6.066 billion at the end of the second quarter of 2009, renewed energy prices encourage new investment.
The turboprop manufacturer ATR announced that it recorded 42 orders and delivered 26 aircraft in the first half.
The joint venture of the European group EADS and Italy's Finmeccanica said in a statement that, taking into account the options, the number of orders placed since January 1 amounted to 72 aircraft.
"We will deliver between 50 and 54 aircraft this year," he told a news conference at the Farnborough Airshow near London, Filippo Bagnato, Chief Executive Officer of ATR.
During the presentation of its annual sales results on January 18, ATR stated aim of delivering more than 50 aircraft this year after delivering 54 aircraft to their owners in 2009.
The group, which achieved a turnover of 1.4 billion dollars last year, added provide a stable revenue in 2010.
European shares ended slightly lower Wednesday, ending six consecutive sessions upward, banking stocks have suffered from the perspective of capital rules and more stringent risk for banks.
The increase of the high tech, according to results from Intel, however, helped to significantly reduce losses. Without appease investors who wait with some anxiety the results of stress tests of banks, July 23.
In Paris the Cac 40 index loses and 0.13% to 3632.98 points.The FTSEurofirst 300 index, which gained 8.2% over the previous six sessions, do likewise yields only 0.14%.
The European banking index, which lost more than 1% in session, ended the day on a decline of 0.42%. This is the second segment loss of the day and not as the first meeting. On the contrary, it confirms the high techs gain the most important day of 1.21%.
For banks, BNP Paribas, HSBC and Societe Generale have lost 1% to 2.7%.
For the high techs, ASLM Holdings gained 3.05%. The world leader in machine lithographed raised its revenue outlook for 2010, strong demand for its machines that allowed him to achieve results better than expected second quarter.
Wendel and his former Chief Executive Jean-Bernard Lafonta subject of proceedings before the Sanctions Committee of the Financial Markets Authority (AMF) on the climb to the capital of Saint-Gobain, writes Le Figaro.
The procedure relates the position that Wendel indirectly held in Saint-Gobain, through derivatives, where the investment firm said to have crossed the threshold of 5% stake in the building materials group in September 2007 by daily.
It would be of Wendel was whether the market informed of the existence of its position in derivatives that indirectly strengthened its position in round of Saint-Gobain.
Grievances reported several months ago by the College of the MFA will be reviewed promptly by the sanctions committee, said Le Figaro.
A spokesman declined to comment Wendel information Friday morning.
The AMF was not immediately available to provide comment.
Greece became the second most risky in terms of sovereign debt due to a deterioration of its debt in the second quarter, a survey of CMA Datavision.
Athens was still in the ninth position of the most risky in terms of sovereign debt in the first quarter, said CMA.
The cost of protecting against a default in the country five years on its debt (credit default swap) has jumped to 1,003.4 basis points (bps) in the second quarter.There is a probability of 55.6% of default of Greece in the five years.
Greece is also the countries with the worst performance in the second quarter with an increase of 190% of its CDS, followed by Belgium with the CDC have increased 168.5%.
Spain completes the podium with a jump of 129.2% of its CDS, while Portugal and France are respectively the fourth and fifth worst student with an increase in the cost of protection on debt of 129.2% and 112.3%.
In absolute terms, Venezuela, with CDS has reached 1305.7 bps remains the country's riskiest ranking made by the company study the risk of default on debts, Caracas, with a probability of default to five years' s raising to 58.7%.
Iceland and Egypt are instead left the group of the ten riskiest in the world, unlike Romania and Bulgaria which joined the top 10 at the eighth and tenth positions respectively, their banks being heavily exposed to Greece.
Among the safest countries in the world are still Norway and Finland, which continue to occupy the first and second place in the field, while the U.S. is hoisted from the tenth to third in favor of improving the credit situation in the country.
Germany, which is a reference in the euro area sovereign debt, and the Netherlands have however slipped in the rankings of the safest countries.
Germany has dropped to third from sixth place the first three months of the year and the period April-June The Netherlands has them in eighth place after being in sixth place three months earlier.
For a chart on the classification of CMA Datavision, click on:
here
