The headquarters of Henkel in Duesseldorf. The German consumer goods group’s shares rose 7.5% yesterday after it posted a bigger-than-expected increase in third-quarter profit.

Reuters
London

European shares rose yesterday after well-received earnings reports from companies including Henkel and as Carlsberg’s new management outlined restructuring plans, sending the brewing group’s shares soaring.
The FTSEurofirst 300 rose 0.7%, adding to a 0.2% gain in the previous session. The index is down 0.4% this week on fears of a possible interest rate rise by the US Federal Reserve in December after strong jobs data.
With European stocks near three-month highs, some said there was enough bullish sentiment to withstand a rise in rates.
“If there’s a one-off rate rise from the Fed, the market has enough appetite in it to take it in its stride,” TJM Partners head of trading Manoj Ladwa said. “But going forwards, there’s still loose monetary policy in place from the European Central Bank, and that’s largely supportive of equities.”
Denmark’s Carlsberg rose as much as 9% after it said it would book a $1.4bn impairment charge and cut staff to return to growth. Analysts welcomed the steps, saying the brewer’s earnings contained no negative surprises. Shares in the brewer were last up 6.2%.
Henkel rose 7.5% after the German consumer goods group posted a bigger-than-expected increase in third-quarter profit.
Supermarket group Ahold also rose after results, gaining 3.6% after meeting net sales forecasts and reporting free cash flow that was ahead of last year. Belgium’s Delhaize got a boost from its merger partner’s results.
However, not all earnings were well received.
Vivendi was down 7% after the French media company reported lower third-quarter operating profit after the market close on Tuesday, as its music and pay-television units struggled with competition and subscriber losses.
It also posted weaker-than-expected profits.
Mediaset fell more than 9% after the TV broadcaster, controlled by former Italian Prime Minister Silvio Berlusconi, raised its cost guidance and gave a cautious outlook for the fourth quarter.
Osram shares tumbled 29%, its biggest one-day fall, after the German lighting group announced a €3bn growth plan following the disposal of its lamps business.
In all, earnings season has been mixed. With roughly four fifths of companies having reported results, 50% of them have missed expectations, according to Thomson Reuters Starmine data.
“Analysts have low-balled expectations anyway ... so for earnings to come in weaker when expectations have already been lowered, it’s a concern,” TJM’s Ladwa said.
JP Morgan Cazenove said the number of forecast-beating earnings in Europe surprised negatively by 7%, although once energy was stripped out, the eurozone recorded stronger earnings growth than the US and Japan, up 6% year-on-year.