French Stocks Fall; Michelin Renault Peugeot Lead the Drop
French Stocks Fall; Michelin, Renault, Peugeot Lead the Drop
By Adria Cimino
Jan. 30 (Bloomberg) — French stocks declined, led by auto
shares after Goldman Sachs %26amp; Co. cut 2008 earnings estimates on
European car stocks.
Michelin %26amp; Cie. fell after Goldman advised investors to
sell the shares. Renault SA and PSA Peugeot Citroen also
retreated. BNP Paribas SA slid after its quarterly profit missed
analysts; estimates.
The CAC 40 Index retreated 35.73, or 0.7 percent, to
4,905.72 at 9:45 a.m. in Paris. The SBF 120 Index fell 0.6
percent.
Michelin, the world;s second-biggest tiremaker, lost 3.6
percent to 66.63 euros. Goldman cut its recommendation on the
stock to `sell;; from “neutral.;;
Renault, France;s second-largest carmaker, retreated 3.6
percent to 77.03 euros. Goldman lowered its recommendation on
the shares to “neutral;; from “buy.;; Peugeot slipped 1.3
percent to 50.65 euros. European car stocks may fall 15 percent
to 20 percent, Goldman said. The firm cut its earnings estimates
by 25 percent for the industry this year.
BNP fell 0.6 percent to 67.22 euros. France;s largest bank
said fourth-quarter profit fell 42 percent, hurt by 589 million
euros ($871 million) of costs linked to credit market
turbulence. Net income fell to about 1 billion euros, falling
short of analyst estimates.
“BNP had always been the good student of the class,;; said
Alexandre Iatrides, who helps oversee about $7.3 billion at
Richelieu Finance in Paris. “Now we discover this important
exposure. It;s bad news.;;
The following stocks rose or fell in Paris. Stock symbols
are in parentheses.
Boiron SA (BOI FP) jumped 76 cents, or 5.1 percent, to 15.8
euros. The homeopathic drugmaker said fourth-quarter sales rose
9.6 percent to 127.7 million euros and said full-year profit
will show “a significant rise.;;
Technip SA (TEC FP) sank 3.28 euros, or 6.8 percent, to
45.18. Europe;s second-biggest oilfield-services company said
2007 operating profit was 260 million euros. Technip said
revenue this year will be at a similar level to 2007.
Vilmorin Clause %26amp; Cie. SA (RIN FP) added 2.06 euros, or 2
percent, to 107.51. The producer of carrot and bean seeds said
fiscal first-half sales rose 14 percent to 279.7 million euros.
The company confirmed its full-year targets and said there is
“potential for improvement.;;
To contact the reporter on this story:
Adria Cimino in Paris at
