Most German Stocks Advance; Fresenius Medical, MAN Lead Gains

By Stefanie Haxel

Feb. 19 (Bloomberg) -- Most German stocks climbed as better than-estimated earnings from Fresenius Medical Care AG overshadowed concern the global economic slump will worsen.

Fresenius Medical gained for the first time in three days after the world’s biggest provider of kidney dialysis reported higher profit. MAN AG climbed 4 percent after Europe’s third- largest truckmaker predicted 2009 sales and profitability at some units will remain “stable.” Infineon Technologies AG and K+S AG led falling shares.

The benchmark DAX Index added 0.3 percent to 4,217.88 as of 10:18 a.m. in Frankfurt, following a three-day decline that sent the measure to the lowest level in almost a month. DAX futures expiring in March gained 0.1 percent. The broader HDAX Index increased 0.4 percent.

“The market may have found a bottom for the next couple of days after being oversold,” said Matthias Jasper, head of equities at WGZ Bank in Dusseldorf. “However, we have a constant negative news flow and the situation will remain difficult overall.”

The Federal Reserve yesterday predicted a deeper contraction of the economy this year as the credit crunch tightens. Most members of the monetary policy committee also saw a risk that “recovery could de delayed,” according to the minutes of the meeting on Jan. 27-28.

Fresenius Medical gained 1.2 percent to 34.60 euros. Fourth- quarter net income rose to $214 million from $197 million as the company sold more products and blood-cleansing services. That beat the $213 million median estimate of analysts in a Bloomberg News survey.

Fresenius, MAN

Parent Fresenius SE also reported higher fourth-quarter profit and sales and proposed raising its dividend. The stock added 0.8 percent to 42.99 euros.

MAN gained 4 percent to 34.20 euros. The truckmaker also reported a larger-than-estimated slump in fourth-quarter profit as the recession caused freight transporters to scale back fleet.

“Order intake doesn’t look so bad,” said Christian Aust, an analyst at UniCredit Markets & Investment Banking in Munich. “Stable sales are expected for diesel engine, turbo machines and RENK,” a producer of gears and propulsion technology.

Infineon, Europe’s second-largest maker of semiconductors, lost 2.2 percent to 66 cents. The works councils of its Qimonda unit’s Dresden and Munich plants have written an open letter to Chancellor Angela Merkel, mentioning a French state aid packaged worth 457 million euros ($574 million) for the development of nanotechnology that was approved by the European Union.

K+S, Europe’s biggest maker of potash used in fertilizers, slipped 1.3 percent to 38.38 euros, the lowest since Feb. 3.

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

Aleo Solar AG (AS1 GY) gained 4.5 percent to 5.12 euros. The maker of solar-energy products said full-year earnings before interest and taxes rose to 23.8 million euros from 15.7 million a year earlier.

Centrotherm Photovoltaics AG (CTN GY) climbed 3.1 percent to 16.47 euros. The solar-cell machinery maker that expanded its workforce fourfold last year reported full-year earnings before interest and taxes more than doubled to about 56 million euros.

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