Profits at European companies are trailing analyst estimates bythe most in at least five years, dragged down by manufacturingshares that had been forecast to lead a rally in the second half ofthe year.

About 53 percent of companies in the Stoxx Europe 600 Index thathave reported earnings since July 11 missed analysts' projections.That's the most in data compiled by Bloomberg since 2006. Thebenchmark gauge lost 3.1 percent in the period, the largest declineto start an earnings season since April 2010.

Investors have been relying on manufacturers in Germany andScandinavia to buoy stocks after Europe's debt crisis forced Greeceto accept a second bailout and cut projections for bank earnings.As commodities costs rise and currencies in Switzerland and theNordic region strengthen, companies from Atlas Copco AB inStockholm to Paris-based PSA Peugeot Citroen and Ludwigshafen,Germany-based BASF SE have disappointed, sending their shares downmore than 5 percent.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.