GM Focuses on Europe Profit; Thoughtful on Alliance
General Motors Corp. Chief Financial Officer Fritz Henderson said the worlds largest automaker is focused on increasing profits in Europe and will give a thoughtful analysis to a proposed alliance with Renault SA and Nissan Motor Corp.
Were by no means generating an adequate level of profitability or return on investment in Europe and GM will seek to boost its profit margin there, Henderson, 47, told analysts today at a JPMorgan Chase & Co. conference in Paris.
As part of its corporate turnaround effort, the Detroit- based automaker is giving careful study to a proposed alliance with the French and Japanese automakers, Henderson said. Powertrain technology and vehicle development are potential areas where the three companies could mutually benefit, he added.
More : bloomberg.com
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Ford still on track for 2006 profit in Europe
Ford Motor Cos European operations still expect to make a profit in 2006, Ford of Europe Chairman Lewis Booth told Reuters on Tuesday.
We have declared that we will be profitable in Europe this year and we expect to stay there, he said on the sidelines of a ceremony marking the production launch of two vehicles in Belgium.
Ford had previously said its expected European operations to post a pre-tax profit this year excluding special items.
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Europe: Pessimists cast doubt on outlook for profits
AMSTERDAM European stocks on Tuesday fell the most since November on speculation that earnings prospects did not justify the rally at the start of 2006.
BHP Billiton and Rio Tinto Group led a drop by metal producers, the best performers last year, after Alcoa in the United States reported decreasing profit.
Insurers slid as Merrill Lynch cut its recommendation on the British giants Royal & Sun Alliance Insurance Group and Prudential, saying new domestic business would slow.
Marks & Spencer Group slipped as the retailer's chief executive said rising costs would constrain earnings.
UK Conservatives to withdraw from Europe alliance
David Cameron, leader of Britains opposition Conservatives, on Thursday announced plans to withdraw his party from the main centre-right grouping in the European Parliament but admitted this would not happen before 2009.
The compromise move aimed at overcoming sharp Conservative divisions over Europe followed prolonged attempts by Mr Cameron to find sufficient credible allies to form an alternative non-federalist group to the European Peoples party.
Mr Cameron insisted he was fulfilling the pledge to withdraw from the EPP that he made during his successful Conservative leadership campaign last year. However, the compromise came under fire from
Europe: Bourses fall on fears of profit slowdown
European stocks fell Tuesday after oil climbed to a record, stoking concern that a slowdown in earnings growth will worsen.
The high price of oil is weighing on European markets, said Alan Borrows, fund manager at Midas Capital Partners in Liverpool in Britain. Input costs are rising significantly and that will place pressure on companies profit margins.
The Dow Jones Stoxx 600 index slipped 0.32 points to 334.04, though energy companies and mining stocks limited its losses.
The Stoxx 50 fell 5.04 points to 3,513.62, and the Euro Stoxx
Metro Profit Jumps on Praktiker Sale, Eastern Europe
Metro AG, the retailer thats buying Wal-Mart Stores Inc.s German outlets, said second-quarter earnings rose 88 percent on revenue from Poland, Russia and Romania and the sale of a home-improvement chain.
Net income climbed to 262.4 million euros ($334 million), or 80 cents a share, from 139.3 million euros, or 43 cents, a year earlier, Germanys largest retailer said today in a statement. Excluding income from the disposal of Praktiker AG, profit at Dusseldorf-based Metro rose 31 percent, more than analysts had estimated.
Chief Executive Officer Hans-Joachim Koerber expanded in eastern Europe
