German Stocks Fall, Led by K+S, ThyssenKrupp; Hochtief Declines

By Stefanie Haxel

Dec. 19 (Bloomberg) -- German stocks fell amid concern the deteriorating global economy will curb corporate profits.

K+S AG, Europe’s largest producer of potash used in fertilizers, plunged 6.4 percent after global market leader Potash Corp. of Saskatchewan Inc. lowered its full-year profit forecast. ThyssenKrupp AG fell for the first time in a week after saying its steel unit will cut working hours as a slump in demand from carmakers and builders reduces demand for the alloy.

The benchmark DAX Index fell 72.86, or 1.5 percent, to 4,683.54 as pf 12:31 p.m. in Frankfurt, curbing this weeks rise to 0.4 percent. DAX futures expiring today lost 1.5 percent. The broader HDAX Index sank 1.5 percent today.

Germany’s DAX is still headed for a 42 percent decline this year, the steepest annual drop since 2002, as more than $1 trillion in credit-related losses and writedowns at finance firms worldwide push the economy toward a recession.

Trading may be more volatile than usual today as options and futures expire across Europe.

“The overall climate is still difficult,” said Robert Halver, head of research at Baader Bank in Frankfurt. “There is a lot of imponderable things such as a possible bailout of U.S. carmakers or the outcome of full-year reports at the start of next year. Investors don’t want to take a stab in the dark and volatility will continue until the end of the year.”

K+S tumbled 6.4 percent to 37.43 euros. Potash Corp., the world’s largest fertilizer maker, said earnings per share will probably be $10.75, or 10 percent less than the midpoint of the pervious forecast.

ThyssenKrupp

ThyssenKrupp retreated 3.6 percent to 17.27 euros, the steepest drop since Dec. 5. Germany’s largest steelmaker may cut as many as five shifts a month at nearly all plants between February and September after reaching an agreement with works councils yesterday, Dietmar Stamm, a spokesman for the unit, said today by phone.

Hochtief AG declined 6.3 percent to 30.76 euros. Merrill Lynch & Co. cut its recommendation for Germany’s largest construction company to “neutral” from “buy.”

The following stocks also rose or fell in German markets. Symbols are in parentheses.

Air Berlin Plc (AB1 GY) rallied 16 percent to 4.97 euros, gaining for a fifth day. Etihad Airways, the national airline of the United Arab Emirates, may buy a stake in Europe’s third- largest discount airline, Sueddeutsche Zeitung reported, citing unidentified industry sources. Air Berlin spokesman Peter Hauptvogel declined to comment when contacted by Bloomberg News.

A.S. Creation Tapeten AG (ACW GY) gained 5.6 percent to 14.25 euros. Germany’s biggest wallpaper maker bought majority stakes in two French wholesalers for 15.7 million euros ($22.5 million).

BASF SE (BAS GY) tumbled 1.4 percent to 26.29 euros. Goldman Sachs Group Inc. cut its share-price estimate on the world’s largest chemical maker 7.7 percent to 24 euros.

Kloeckner & Co. (KCO GY) declined for a second day, losing 4.8 percent to 10.26 euros. JPMorgan Chase & Co. downgraded the steel trader to “neutral” from “overweight.”

Lanxess AG (LXS GY) dropped 5.7 percent to 12.37 euros, snapping a four-day increase. Germany’s largest publicly traded specialty chemicals maker said it will delay investment projects including a butyl rubber plant in Singapore in response to falling demand for chemicals worldwide.

MorphoSys AG (MOR GY) climbed 3 percent to 47.57 euros. The biotechnology company that makes antibodies for use in drug development will implement a planned 3-for-1 stock split on Dec. 23 to spur trading of the shares.

To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net.