Source - http://www.ft.com/
By - Miles Johnson and Tobias Buck
Category - Accomodations In Santa Clarita
Posted By - Hampton Inn Santa Clarita
Accomodations In Santa Clarita |
On a day when more than a third of Spain’s Ibex 35 index reported full-year results Bankia, the nationalised lender, reported a net loss of €19.2bn, the largest in Spanish corporate history. Meanwhile, ongoing restructuring woes at Spanish carrier Iberia saw International Airlines Group swing to a near €1bn full-year pre-tax loss from a profit the year before.
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.
“It has been the worst year for corporate earnings in Spain since the crisis began,” said Emmanuel Cau, European equity strategist at JPMorgan. “Earnings have collapsed in Spain for domestically focused businesses, which reflects a sharp fall in domestic GDP.”
With eight companies still to report, the Ibex 35 index as a whole reported a net loss of €2.7bn in the fourth quarter, according to analysis by Mirabaud, the worst since the crisis began, with banks contributing to the bulk of the losses.
But while the earnings reports highlighted the depth of the economic downturn last year, several corporate leaders voiced confidence that their companies would enjoy a better performance in 2013. The turnround is set to be especially pronounced at Bankia, which predicted it would post a full-year profit this year, while Telefonica pleased investors by showing signs that the deterioration in its Spanish business was stabilising.
Other large Spanish companies continued to be sheltered by profits from their international businesses while earnings at home were hurt by domestic woes, with one in four people jobless. Telefonica, Spain’s former state telecoms monopoly, said sales at home slumped 13 per cent over last year, while Repsol, the oil group, saw fuel sales at domestic petrol forecourts fall 9 per cent.
The flurry of earnings reports came as new data revealed that the Spanish economy contracted at a faster pace than previously thought late last year.
In a sign of the continuing weakness in the country’s credit-starved economy, output fell 0.8 per cent in the last three months of 2012 – the sharpest quarterly drop in more than three years – Spain’s national statistics office said.
Analysts said the fall highlighted the challenge faced by the Spanish economy this year. “Official forecasts for the economy look far too optimistic,” said Jonathan Loynes of Capital Economics, pointing out that the government was predicting a fall in GDP of only 0.5 per cent in 2013, about one point less than consensus forecasts.
Analyst expectations for corporate earnings in Spain has collapsed since the crisis began, with 12 month forecasts for earnings per share growth down by 42 per cent from their peak five years ago, according to analysis by JPMorgan.
“Everyone is saying we have seen the worst, and the second half is going to be better, but there are few signs of this. We have heard this before,” said Ignacio Méndez Terroso, head of strategy at Mirabaud in Spain.