French Stocks: Alcatel, Alten Gain as Michelin, Peugeot Decline

By Alexis Xydias

Oct. 1 (Bloomberg) -- France's CAC 40 Index gained 22.44, or 0.6 percent, to 4,054.54. The SBF 120 Index rose 0.5 percent.

The following shares rose or fell in the local market. Stock symbols are in parentheses.

Alcatel-Lucent SA (ALU FP), the world's largest provider of fixed-line networks, added 11 cents, or 4 percent, to 2.81 euros. The stock was raised to ``conviction buy'' from ``neutral'' at Goldman, Sachs & Co., which said concerns about the company's sales outlook are overdone. Before today, the stock had fallen 46 percent in 2008.

Alten SA (ATE FP) added 1.10 euros, or 5.4 percent, to 21.41. France's second-largest contract-technology research company reported first-half net income of 29.8 million euros ($42 million), up from 17.5 million euros a year earlier.

Beneteau SA (BEN FP), the world's largest maker of sailboats, fell 75 cents, or 7.4 percent, to 9.40 euros, the second-worst performer in the SBF 120. The company yesterday reported an increase in sales for 2008 and said some clients are holding back orders for 2009 amid slowing economic growth and a global financial crisis.

Michelin & Cie. (ML FP) decreased 3.15 euros, or 6.9 percent, to 42.30, its steepest decline in five months. The world's second-largest tiremaker fell on concern that the company's savings plan isn't boosting earnings. Michelin, which has cut its full-year earnings target twice this year, said today one-third of the 1.5 billion euros in savings sought by 2010 has already been achieved.

Neopost SA (NEO FP) rose 2.21 euros, or 3.3 percent, to 68.56, a second gain. Europe's biggest maker of mailroom equipment said first-half profit fell 6.8 percent to 74.3 million euros on a weaker dollar and declining U.S. demand.

PSA Peugeot Citroen (UG FP), Europe's second-largest carmaker, fell 94 cents, or 3.6 percent, to 25.43 euros, the lowest this decade. Peugeot brand chief Jean-Philippe Collin declined to reiterate its 5 percent growth target for full-year vehicle sales.

Daimler AG, the world's second-largest luxury carmaker, said markets have worsened since it lowered the earnings outlook in July. Porsche SE, maker of the 911 sports car, said it's ready to scale back production as financial-market turmoil makes earnings forecasts ``difficult.''

Valeo SA (FR FP), France's second-largest auto-parts maker, tumbled 1.82 euros, or 8.6 percent, to 19.43, leading declines in the SBF 120.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.