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.
Concerns persist about the state of the U.S. economy have overshadowed the optimism caused by the slight recovery evident on the face of mergers and acquisitions, leading U.S. stock indexes finished down on Monday night.
The Dow Jones closed with a loss of 39.21 points, or 0.38%, to 10,174.41.The Standard & Poor's 500 largest, fell 4.33 points, or 0.40%, to 1067.36 while the Nasdaq Composite ended down 20.13 points (-0.92%) to 2159 63.
The technology has largely underperformed other sectors, driven down by Hewlett-Packard and Dell are waging a fierce battle to take 3PAR, data storage specialist.
HP closed down 2.03% to 39.04 dollars and Dell lost 1.08% to 11.94 dollars, while 3PAR has jumped 44.62% to 26.09 dollars.
These offers are in addition to announcements made last week by Intel that is preparing to resume McAfee and BHP Billiton who covets the Canadian expert potash Potash.
On Monday, sources have reported that Campbell Soup paying serious attention to the British United Biscuits.
Campbell Soup took 0.70% 36.90 dollars.
As the CEO of 3M, he announced Monday that his group would invest about two billion dollars in acquisitions in 2010, double its previous estimate. 3M closed up 0.52% to 81.08 dollars.
"Setting the background of the phenomenon of mergers and acquisitions, which has very little seniority, due to the weakness of economic statistics," said Bucky Hellwig, Vice President of BB & T Wealth Management .
Analysts also point out that activity on the front of M & As is explained primarily by the willingness of companies to generate profits through cost savings rather than through growth in sales.
The European financial stability, to assist Member States in the euro area experiencing solvency problems, became fully operational Wednesday after weeks of uncertainty about the ratification of its Statute.
European fund, which can now raise up to 440 billion euros with the security of countries in the euro area, is part of an overall mechanism developed in the emergency early May, during the debt crisis of the European and capable of raising up to 750 billion euros with the involvement of the IMF.
The mechanism became fully operational on August 4 when Italy has confirmed its commitment to provide its guarantee for any loans issued by the Special Purpose Vehicle (SPV or "mutual fund assets"), said the representatives of the European Stability financial (FESF).
'I am pleased that Member States of the euro area have reached the final stage in the development of FESF, said in a statement Klaus Regling, Director General of the fund.
"The FESF is now fully operational and can if necessary, issue bonds with the assistance of the Office of the German debt, which would be guaranteed by member states of the eurozone."
No financial score has yet been assigned to the SPV, based in Luxembourg.This step constitutes an essential element for the cost it would have to agree to issue debt, if ever he has to do.
The funds should in theory receive the maximum "AAA" by the major rating agencies, the same rating as that assigned to debt securities issued occasionally by the European Commission with support from EU Member States.
END OF THE PROCESS OF RATIFICATION
The mechanism of financial stabilization, which had been agreed by Heads of State and Government of the eurozone at a special summit in Brussels on May 9, would then be transposed National in each participating state.
Its application has been suspended, however long the ratification of Slovakia, who was crossing a tense election period in which the issue of financial support to Greece's participation in the stabilization fund arose as European.
The new Slovak Minister of Finance appointed in early July has finally ratified the European Agreement on July 16.The surprise of the notification without approval of Italy August 4 marks the end of the process of ratification of 16 member states of the euro area.
After the recovery of financial markets, halting the fall of the euro and the favorable report of the EU and the International Monetary Fund on Greece, it is possible that the Fund, whose life is in principle limited 3 years, will ultimately not used.
Mitsubishi UFJ Financial Group (MUFG) is planning to resume participation of BNP Paribas in a Chinese joint venture asset management for 50 million dollars (38.2 million euros), we learn two sources familiar with the matter.
This would allow the first Japanese bank to enter the Chinese market for the management of funds, estimated at 237 billion euros and could exceed 765 billion euros in five years, according to consulting firm Z- Ben Advisors.
BNP Paribas and MUFG will submit the draft to the Chinese authorities before the end of the month, after rejecting an initial application for minor technical reasons, "said one source.
Once disengaged from SYWG BNP Paribas Asset Management, BNP Paribas will hold only one license for fund management in China and thus in keeping with rules set by Beijing, which prohibit foreign companies from holding more than one license in that market .
VERY ATTRACTIVE OFFER
Over thirty foreign institutions, including JPMorgan, Credit Suisse and Morgan Stanley, have formed joint ventures in fund management in China, while groups such as Aberdeen Asset Management and T. Rowe Price are looking to break into this market.
MUFG has prevailed over a dozen other candidates for the takeover of parts of BNP, among whom were Japanese Nomura Holdings and Britain's Ashmore Group.
The offer of the Japanese for 33% of BNP Paribas is a ratio of prices on assets under management of approximately 10%, against a normal value of 5%, thus making the supply of MUFG very attractive.
SYWG BNP Paribas was established in 2004 by BNP Paribas and the Chinese broker Wangguo Shenyin & Securities Co, which owns two thirds of the capital.
The joint venture had 10.4 billion yuan (1.2 billion euros) in assets under management at the end of June, 0.49% of the market, against 0.9% at end 2009.
After this assignment, BNP Paribas will not have more than a joint venture in China Fund Management, Fortis Haitong, which manages about 40 billion yuan of assets, or 2% of the market.
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.
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 will overcome its fiscal crisis without having to restructure its debt, said Greek Finance Minister George Papaconstantinou in an interview published Wednesday by the German newspaper Handelsblatt.
'We still have a credibility problem, he acknowledged, adding that the country would not need to restructure its debt.
'We must not let the single currency to be destroyed by the markets overreacted.
A delegation of the European Union, the International Monetary Fund (IMF) and European Central Bank (ECB) said last week that Greece put in place economic reforms, according to plan massive aid over three years 110 billion euros to save the country from bankruptcy.
"I see the end of the tunnel," said the minister.
"We hope to finish the year better than we expected, out of the recession more quickly and return to growth from the mid-2011," he said, while acknowledging that "Spain and the Portugal [were] in a much better position than Greece.
In return for IMF assistance plan / EU, Greece has promised to cut its budget deficit to 8.1% of GDP this year to comply with the requirements of Brussels and under the 3% of GDP by 2014 .
The objective, "not less deficit, a deficit from zero in 2018," insisted Eric Woerth at the presentation of the proposed government reform, Wednesday, June 16 The key measure for achieving this and the decline of the statutory retirement age to 62 years. And a whole series of other measures, which help the rich, business, capital, etc..
Read about: Pension reform: who pays?
In total, the combined revenues related to raising the legal age of retirement, the alignment of the public on the private and various taxes and levies increases, will amount to 27.2 billion euros in 2018.
The government also plans to switch the unemployment insurance contributions on pension contributions from 2015, assuming a return to the green accounts Unedic.This shift would provide 1 billion euros of additional revenue in 2018.
In addition, the funding for the state retirement officials will now be frozen at its current level of 15.6 billion euros a year. This non-worsening deficit is included as a gain by the government in its calculations of pension funding. A calculation that is questionable to say the president of the National Fund of retirement, Daniele Karniewicz that "the account is not there".
The proposed reform of the government does not provide that additional income: it also includes a series of "fair" and "positive" in the words of the Minister of Labour.Maintenance of the device "long careers, can leave at 60 years under the" hardship "increase the number of terms validated during the period of youth unemployment, maternity leave compensation to the calculation of pensions for women, exemption from wage costs for companies that hire unemployed over 55 years, etc. … total, these measures will cost 1.3 billion euros in 2018.
What funding after 2018?
So in the end, the 42 billion euros needed to finance pensions in 2018 will be well assured, if it is based on calculations of the government. But before? Meanwhile the "deficit 0", the accumulated holes will be financed by the Pension Reserve Fund (RRF), whose assets reached 34.5 billion euros.The fund, which accumulates up financial reserves and is fed by a levy of 2% on income from property and investment.
It was established in 1999 by the Socialist government of Lionel Jospin to face the demographic shock expected after 2020. His assets should therefore not be released to the origin before that date. In fact in 2020 that the generations of the baby boom, the "boomers" of today, are retiring. The FRR was hoping to further capitalize on the funds entrusted to him and was expecting an available amount of 87 billion euros in 2020. This is not the case. All of its funds should indeed be engulfed by 2020.
And after 2018? A great deal of uncertainty about the future: the reform of government does not respond to this question. He places the cursor on the age of retirement in the heart of its reform.But the economic gains of this variable on the long term fading. According to the ROC, the rise of legal age to 62 years provides an improved pension deficit by half in 2020, then fourth in 2030 and only 15% in 2050. Indeed, after raising the age completed, improving the balance is reduced as a result of the increase in the average pension.
