By Stefanie Haxel
Nov. 6 (Bloomberg) -- German stocks dropped for a second day as disappointing earnings reports deepened concern the economic slowdown will hurt consumer companies.
Adidas AG declined the most in three weeks after the world's second-largest sporting goods maker posted stagnant profit that missed analysts' estimates. Henkel AG & Co. KGaA slid 7.2 percent after cutting its forecast. Deutsche Bank AG sank 7.9 percent as Morgan Stanley lowered its share-price estimate for Germany's biggest bank by assets. Investors also awaited the European Central Bank's decision on interest rates.
The benchmark DAX Index declined 228.8, or 4.4 percent, to 4,938.07 as of 12:03 p.m. in Frankfurt. DAX futures expiring in December dropped 4.7 percent. The HDAX Index of the country's 110 biggest companies slipped 4.3 percent.
``The election euphoria is over,'' said Robert Halver, head of research at Baader Bank in Frankfurt. ``The economy is taking center stage again and the incoming data is massively bad. An expected interest-rate reduction by the ECB is already priced.''
U.S. stocks plunged yesterday as reports on jobs and service industries stoked concern the economy will worsen even as President-elect Barack Obama tries to stimulate growth.
The ECB is expected to cut its benchmark interest rate for the second time in less than a month today as the region's economy suffers its worst slump in 15 years, a survey of economists by Bloomberg News showed.
The DAX Index has slumped 39 percent this year on concern bank bailouts in the U.S. and Europe won't prevent a recession as credit-related losses and writedowns approached $700 billion in the worst financial crisis since the Great Depression.
Consumer Companies
Adidas fell 2.58 euros, or 8.8 percent, to 26.89, the steepest slide in three weeks. The sporting-goods maker reported net income of 302 million euros ($390 million), little changed from a year earlier. That missed the 320.5 million-euro median estimate of analysts surveyed by Bloomberg News.
Henkel lost 1.68 euros, or 7.2 percent, to 21.58. The maker of Persil detergent cut its forecast for annual profit because of high costs for plastic and other raw materials and expenses to combine an acquired unit with other divisions. Third-quarter net income retreated to 101 million euros from 238 million euros.
Deutsche Bank fell for a second day, declining 2.73 euros, or 7.9 percent, to 31.86. Morgan Stanley slashed its share-price projection 13 percent to 39 euros.
Commerzbank AG, Germany's second-largest bank by assets, retreated 96.5 cents, or 9.8 percent, to 8.79 euros.
Price Estimates
K+S AG dropped 2.86 euros, or 8.4 percent, to 31.41, the biggest decline since Oct. 15. JPMorgan Chase & Co. lowered its share-price estimate for Europe's largest producer of potash used in fertilizers 30 percent to 70 euros, citing an announcement by K+S to cut production in the fourth quarter.
Infineon Technologies AG slumped 27 cents, or 9.4 percent, to 2.59 euros. Goldman Sachs Group Inc. reduced its share-price projection for Europe's second-largest chipmaker 16 percent to 3.50 euros.
The following stocks also rose or fell in German markets. Symbols are in parentheses. Symbols are in parentheses.
Air Berlin Plc (AB1 GY) lost 10 cents, or 2.9 percent, to 3.34 euros, a one-week low. Europe's third-biggest discount airline said its planes were less full last month, even as the carrier cut about 80,000 seats because of falling demand.
Altana AG (ATL GY) rallied 3.54 euros, or 38 percent, to 12.93, the steepest advance since May 2007. Skion GmbH, the company owned by German billionaire Susanne Klatten, offered 910 million euros for the world's largest maker of additives for coatings and plastics. Skion will pay Altana shareholders 13 euros per share for the 49 percent of the company that Klatten doesn't already own.
Fresenius Medical Care AG (FME GY) gained 1.07 euros, or 3.3 percent, to 33.97. Goldman Sachs Group Inc. raised its share- price estimate for the world's biggest provider of kidney dialysis 4.3 percent to 36 euros, saying cost increases are being mitigated by a stronger U.S. dollar.
Fuchs Petrolub AG (FPE GY) fell 9.06 euros, or 16 percent, to 46.10, the largest decline since at least January 1999. The country's largest maker of lubricants predicted weaker fourth- quarter demand, particularly in the automotive industry, as economic growth slows.
WestLB AG removed the stock from its ``mid & small cap focus list'' and lowered its price projection 34 percent to 45 euros.
Heidelberger Druckmaschinen AG (HDD GY) dropped 52 cents, or 7.2 percent, to 6.75 euros, the lowest in more than a week. The world's largest maker of printing machines posted a fiscal second-quarter net loss of 55.7 million euros as cost-cutting programs failed to fully compensate for a slump in demand.
IVG Immobilien AG (IVG GY) tumbled 91 cents, or 15 percent, to 5.30 euros, the biggest slide in more than four weeks. Morgan Stanley slashed it share-price estimate for Germany's largest publicly traded commercial property company 86 percent to 1 euro, while WestLB cut its projection 38 percent to 13 euros.
OVB Holding AG (O4B GY) rose 1.84 euros, or 7.3 percent, to 27.02. The financial-services broker that has most of its customers in eastern Europe reported a 39 percent increase in third-quarter profit to 5 million euros as it paid lower taxes.
Premiere AG (PRE GY), Germany's biggest pay-television operator, tumbled 40 cents, or 14 percent, to 2.53 euros. News Corp., the media company controlled by Rupert Murdoch which owns a quarter of Premiere, cut its 2009 profit forecast because of shrinking sales at its Fox stations and newspapers.
Premiere shares had jumped two days ago on speculation News Corp. may boost its stake in the company.
ProSiebenSat.1 Media AG (PSM GY) plunged 23 cents, or 9 percent, to 2.33 euros, the biggest drop in two weeks. Germany's biggest private broadcaster reported a third-quarter loss on falling advertising sales in a deteriorating economy. The net loss was 10.7 million euros, falling short of an 8.5 million-euro median estimate in an analyst survey.
To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net.
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