International Business News

Eiffage yesterday confirmed its forecast of sales for 2010 thanks to the growth of its backlog and achieved a 40% jump in net profit group share biannually.

The eighth group of European construction and concessions generally expected that sales suffer in 2010, and 2009, the reluctance of public procurement, while the branch motorway concessions observes it, a gradual recovery its activity.

"For now, we have been heavily affected by margins than they were at the top of the previous cycle in 2007, but we do not know when they ascend," said CEO Jean-Francois Roverato at a meeting analysts.

He noted that the shift of the French market over the last ten years, to concessions and public-private partnerships (PPP) would generate a "return to better fortune" in some time."The question is when," he added.

Eiffage, best known for the Millau Viaduct and the future stadium of Lille, has achieved a net profit after minority interests of 70 million euros in the first half thanks to the reduced cost of debt.

The operating profit has however declined by 2.6% to 412 million, within the scope of the downturn in work due to a climate of increased competition.

Alongside Eiffage, Bouygues has raised its annual target of revenue, thanks to TF1 and real estate, while still waiting for a 5% decline in construction.

Vinci, the world leader in construction and concessions, has published its interim results next to expectations, particularly thanks to the improvement of traffic conditions.

NEXT ISSUE OF THE OFFER OF WITHDRAWAL ON APRR

Eiffage, owner of motorway networks APRR (Autoroutes Paris-Rhin-Rhone) and Area (Rhone Alps), has already published July 30 in sales for the second quarter, emerged up 2.2% to 3.547 billion euros.

The company said that the outcome of a bid withdrawal filed on APRR Eiffarie early July by the joint venture between the Australian Eiffage and Macquarie would be published on September 24.

The offering will enable Eiffarie hold 100% of APRR and will be accretive to net income of the group in 2010, says Eiffage.

PRPA reported Friday a net profit increase of 16.3% on back of recovery in traffic, especially trucks.

The group is held June 30 to 26.3% by its employees and 20% by the Strategic Investment Fund (ISF), the float is 35.7%

The action Eiffage closed down 1.34% to 35.99 euros on Tuesday, giving a market capitalization of 3.24 billion euros. It has lost 8.5% since the beginning of the year.

The trade deficit of France fell to 3.796 billion euros from 5.179 billion in June (revised) the previous month, thanks to increased exports find their level two years ago, according to data CVS / CJO published by Customs.

Throughout the first half, the deficit totaled 24.544 billion against 22.928 billion during the first six months of 2009, a decline due mostly to the increase in energy costs.

Six economists polled by Reuters had expected on average a deficit of 4.5 billion euros in June, with estimates ranging from 4.0 to 4.9 billion.

The remainder of May was revised to 5.179 billion from the $ 5,500 billion announced an initial estimate a month ago.

Exports FOB data CVS / CJO surged to 33.016 billion euros against 29.948 billion in May, reaching their highest level since August 2008.

Imports amounted to 36.812 billion euros against 35.127 billion the previous month.

In June, France sold its 26 Airbus reported 1,719,000 euros for 19 aircraft against 1,050 million euros in May

The rate of the Livret A, the product of savings the most widespread in France, went on Sunday from 1.25% to 1.75% to reflect the acceleration of inflation.

There were some 60 million books A and blue books in France in late 2009, according to figures released Wednesday by the Bank of France.

Individuals then held 59.3 million of outstanding books for 175.5 billion euros and 0.6 million corporate booklets for an outstanding $ 7.9 billion.

The higher rate of pay A booklet was announced July 13 after the publication of figures showing inflation in June rose 1.5% in consumer prices over the year.

The Bank of France is responsible for conducting, on January 15 and July 15 of each year, the calculation of rates of pay passbooks regulated according to formulas that take into account the rates on money market and the increase of consumer prices.

The distribution of the Livret A was extended on 1 January 2009 to all banking networks.

The distribution of the money invested in this product is very concentrated, 42% of assets being deposited on only 7% of books in late 2009, according to the report released Wednesday. Next, 30 million savings books were credited with less than 150 euros.

STMicroelectronics said they expect any slowdown in new orders, after a first half that exceeded expectations, but the difficulties of the ST-Ericsson joint venture have disappointed for the second consecutive quarter.

The European leader in the manufacture of semiconductors published Thursday adjusted earnings of 18 cents per share, which was entered in above expectations, and said providing a sequential increase of its turnover included between 2% and 7% in the third quarter.

"We see today a strong flow of new orders, there is no slowdown," said Group CEO Bozotti during a conference call.

Around 10:10, the title fell by 2.57%, to 6.56 euros, compared with a stability of the sector index of technology stocks.

Several analysts have cited the poor performance of ST-Ericsson, the joint venture between STMicro and Ericsson, to explain this decline.

"The continuing recovery is confirmed in this publication, except for the ST-Ericsson joint venture, where the situation continues to worsen," said one trader.

The subsidiary had already, at the publication of the first quarter, overshadowed the strong performance of STMicroelectronics, and many analysts continue to believe that the recovery of this subsidiary is the main weak point of the Franco-Italian.

"ST-Ericsson is in line with its restructuring plan. A major transition can not be achieved overnight (…).We remain committed to this JV, "said Carlo Bozotti.

The subsidiary has seen its sales drop sharply, while it tries to reposition its product offering, overshadowing the first positive effects of restructuring on the profitability of the JV.

STMicroelectronics has published a turnover up 8.9% sequentially to $ 2.53 billion, while the Reuters Editorial was counting on average quarterly sales of 2.513 billion dollars, on Based on estimates of 14 analysts, and earnings per share of 14 cents, according to 12 estimates.

The group, which had raised its forecast for the end of April the market for semiconductors, has confirmed an expected growth of 20% in 2010.

Oracle has announced a net quarterly profit above expectations, this suggests that the recovery of IT spending continues with companies investing in large infrastructure.

The specialist said that professional software maker Sun Microsystems servers – acquired in January while he was in deficit – helped, excluding special items, totaling more than $ 400 million operating profit.

"Oracle is ahead of its roadmap," said an analyst with Piper Jaffray.

The company earned for the fourth quarter of fiscal year 2009-2010 ended May 31 net income excluding items of $ 0.60 while analysts on average expected $ 0.54, according to Thomson Reuters IB / E / S.

Turnover increased 39% to $ 9.5 billion, a level in line with market expectations. Oracle has acquired Sun for 5.6 billion dollars.

"We did better than expected both in terms of sales as net income," said Jeff Epstein, CFO of Oracle, said in a statement.

Sales of new software rose 14% from a year ago to $ 3.1 billion.Three months ago, Oracle had told anticipate a sales growth of between 3% and 13%.

The Oracle President Charles Phillips said the group took "significant market share" in its German rival SAP software in business management.

After finishing down 2.03% to 22.22 dollars on Wall Street, the title of Oracle jumped more than 4% in trading after-hours trade.

The action, however, declined by some 16% since it hit a high of nine in mid-April.

Sales of new homes in the United States has declined more sharply than expected in May and reached a record low with the end of a tax credit related to real estate, official statistics show, adding to fears a slowdown of economic recovery.

These sales fell by 32.7% to 300,000 annualized, against 446,000 (revised) in April, ending two consecutive months of increases.

This is their biggest decline ever in percentage since the launch of this statistical series began in 1963.

Economists and analysts polled by Reuters on average had forecast 410,000 annualized sales figure of 504,000 after the originally announced for April.

Since the buyers had to sign a contract later than April 30 to qualify for federal tax credit, which expired, observers expected a slowdown in new housing last month.

The median sales price of new homes fell 1% between May and April fell to 200,900 dollars. In one year, prices fell 9.6%, evening their biggest drop since July 2009.

Johnson Controls said to be still interested in some of Visteon's business despite rejection suffered by its offer of 1.2 billion dollars (one billion euros) on Tuesday.

In a statement, the American automotive supplier said it had sent a letter to his competitor in which it reaffirmed its proposed acquisition, without giving further details.

Visteon said Tuesday its rejection of the bid from Johnson Controls for its determination to stick to its own roadmap to exit from bankruptcy.

On May 21, Johnson was caught short financial analysts by offering to buy the business vehicle interiors and electronics.

Visteon, a leading supplier of Ford, was placed last year under the protection of Chapter 11 of U.S. bankruptcy law in order to reorganize its business and to clean up its balance sheet.

In the first three months of the year, the OEM posted a net profit of 233 million against two million a year ago.

Contrary to the myth of the victory of 1998, a course team of France in World Cup-2010 has little chance of boosting consumption and cheer to the French morose for months, analysts said.

"Given the past, there is little chance that there is an impact on the morale of the French," explains Benoit Heitz, chief of the division at INSEE cyclical synthesis. While in 1998, "there was an improvement in consumer confidence in July, when the victory of France, but the improvement trend existed before. At best, it would have amplified the trend already existing" he continues, noting that these good results were anyway mostly related to the fact that the competition was held in France.

But this year the World Cup takes place in South Africa and French morale was already at half mast.This indicator summarizes the views of households on the economic situation and declining steadily since the beginning of the year and has dropped 8 points since January. And the chances of a reversal through the course of the France team is minimal.

"Only a victory in the final could possibly have an exhilarating effect, otherwise it will be marginal," said Alexander Law, chief economist at Global Xerfi. "If we win, it will have a positive impact on consumer confidence, but it is only on their morale.And only if we win, if we lose the first round or even the final, "added Nicolas Bouzou, an analyst at Aster.

Impact on sales of TVs

Whether this improvement would last, "it depends much more on attitudes to austerity plan that results in World Cup," says he, in all cases ensuring that the course would have the Blues no impact on consumption. "At the macro level, it has no impact," he insists.

"Often they say that the victories of 1998 and 2000 have generated growth but this is not the case, growth was already there, also notes Marc Touati, director of Global Equities. "The victory is the icing on the cake.The route of the France team can only be the icing on the cake, and if it does not cake …", continues the analyst.

The World should certainly have an impact on sales of televisions, which France won or not. The GfK account and an increase of 200,000 to 250,000 pieces by this event that will invigorate even more a market already in great shape (8.7 million sales in 2010). Good results could also French "boost sales of textiles, with the Blues jerseys, notes Alexander Law. "But not to be extremely high, especially since the team of France does not enjoy a good symbol of love," he tempers.

An early elimination should not have any effect on consumer sentiment. "The team has qualified in pain, his popularity rating has rarely been so low, so people just say + they knew they were unable +.Unfortunately, the French economy has disadvantages much heavier than the poor performance of its sports teams, "said Alexander Law. Failure" could generate a movement of depression, but temporary, "said Marc Touati of his side.