European Movers: Arcelor Mittal, Adidas, TomTom

UK

LLOYDS TSB Down GBP0.04 to GBP4.49... On track for a good 1H08 performance - Co. says remains firmly on track to deliver a good 1H08. Excluding impact of market dislocation and insurance-related volatility, says each division and the group achieved revenue growth in excess of cost growth, and a double-digit percentage increase in PTP in 1Q08. Impact of market dislocation on Wholesale and International Banking PTP was GBP387m. Capital ratios remain robust and rate of risk-weighted asset growth in 2008 is expected to be consistent with previously indicated high single digit, low double-digit range. In 1Q08, says high levels of volatility in fixed income and lower equities contributed to adverse volatility of GBP474m relating to insurance business, excluding policyholder interests volatility.

CAPITA Up GBP0.23 to GBP6.87... Performed strongly in first 4M of 2008 - Says has performed strongly in first 4M of 2008. Adds businesses across group are trading well and the market for significant outsourcing opportunities remains buoyant.

BOVIS HOMES Down GBP0.13 to GBP4.59... 1H to be significantly lower than anticipated - Says conditions in the housing market have deteriorated sharply. Adds reservation levels since the date of preliminary results announcement have been disappointing: reservations to date for 2008 1,382 homes, -30% y/y. Says 1H results will be significantly lower than anticipated. Adds outlook for the remainder of 2008 is difficult to predict.

FRANCE

VEOLIA ENVIRONNEMENT Down EUR 2.89 to EUR 43.01... 1Q08 op. profit disappoints / Conf. call update - Co. posts 1Q08 sales of EUR 9.085bn, up 18.9% ex currencies and better than expected. Says op. profit came in at EUR 701.2m vs. consensus of EUR 744m. Senior Exec VP Jerome Contamine reportedly says during a conference call that FY08 operating maring will be 'slightly lower' y/y. S&P Equity Research upgrades to sell from strong sell on the recent fall in the share price. Cuts target to EUR 40 from EUR 44.

ARCELOR-MITTAL Up EUR 1.92 to EUR 60.00... Exane ups tgt / Deal with China Oriental Group - Exane BNP Paribas lifts target by 30% to US$130. Keeps outperform. Separately, China Oriental Group as signed a sourcing agreement with Co., securing supplies of iron ore and coking coal at prevailing market prices until the end of 2010. Co. owns 29.63% of China Oriental.

NICOX Down EUR 4.17 to EUR 10.37... No global phase 3 for glaucoma drug - Co. and its partner Pfizer announced that Pfizer has taken the decision not to launch a global phase 3 development program for PF-03187207, a drug for patients with primary open-angle glaucoma and ocular hypertension.

GERMANY

HYPO REAL ESTATE GROUP Down EUR 0.83 to EUR 22.85... Writes down EUR 175m in 1Q on its portfolio of structured credits, and reportedly said financial markets are still dysfunctional in some areas. 1Q PTP was a lower-than-expected EUR 6m after deducting the effect of a mandatory convertible bond.

ADIDAS Up EUR 2.30 to EUR 42.70... Quarterly net earnings top expectations - with profit coming in at EUR 169m on in-line sales of EUR 2.621bn. Co. sees no negative impact from protests against Chinese rule in Tibet, it says.

INFINEON Up EUR 0.14 to EUR 6.46... Talk of bid pushes stock higher - Intel and Samsung are thought to be putting more than EUR 10 per share on the negotiating table.

ITALY

LOTTOMATICA Up EUR 0.04 to EUR 20.59... To release 1Q results today - Ahead of Co.'s results due out today, UBS expects sales of EUR 462m [+9.4% y/y], EBITDA at EUR 202m [-4.5% y/y, 43.6% margin from 48.5% in 1Q07] while reported EBIT should come in at EUR 125m.

PARMALAT Down EUR 0.03 to EUR 2.20... Seeks US$2.2bn from Citigroup over the bank's alleged responsibility for Co.'s 2003 bankruptcy, people familiar with the situation reportedly said.

NETHERLANDS

TOMTOM Up EUR 1.74 to EUR 24.49... Lawyer thinks EC to approve deal - A Brussels competition lawyer thinks that regulators will probably approve the acquisition of TeleAtlas by Co., according to Bloomberg. Says Co.'s refusal to sell rights to the map database before the purchase sends a buy signal. Co. has no plans to launch its own-brand handsets, and will continue to focus on the development of core software and further strengthen its content and services for in-car PNDs, according to a top executive of TomTom Asia, writes Dutch broker Gilissen.

ARCELOR-MITTAL [NL] Up EUR 1.90 to EUR 60.00... Exane ups tgt / Deal with China Oriental Group - Exane BNP Paribas lifts target by 30% to US$130. Keeps outperform. Separately, China Oriental Group as signed a sourcing agreement with Co., securing supplies of iron ore and coking coal at prevailing market prices until the end of 2010. Co. owns 29.63% of China Oriental.

PHILIPS Up EUR 0.28 to EUR 24.88... LG Display gains on panel price rise - LG Display, in which Co. has a stake, gained 4.8%, the most in more than a month in Asia after prices of computer monitor panels rose. Prices of monitor panels measuring 17 inches and 22 inches apparently rose 1% in the first half of May, compared with the second half of April, according to WitsView Technology Corp.

NORDICS

HENNES & MAURITZ Down SEK5.00 to SEK360.50... Carnegie downgrades to neutral vs outperform and removes from its mover-list. Notes the winter season has been replaced by summer, with no spring in between. Says this is clearly unfavorable and expects soft sales and margins in 2Q and 3Q, due to mark downs on the spring collection. Points out, weak sector sentiment leaves no room for disappointment and expects the shares to trade sideways in the coming three to six months.

VOLVO Up SEK0.75 to SEK96.50... Carnegie says time to buy - Carnegie raises Co. to its highest rating, including it as a new Carnegie Mover. The broker highlights attractive valuation along with reduced earnings risk. Argues that consensus has trimmed estimates to a more realistic level. Says it is time to buy.

ORKLA Down NOK0.70 to NOK71.10... Divergent views on 1Q results - Co. discloses 1Q numbers with top line broadly inline with consensus, while bottom line disappoints. Revenues amount to NOK16.944bn vs a Reuters forecast of NOK17.597bn, EBITA to NOK1.062bn vs NOK1.068bn, EBIT to NOK1.005bn vs NOK1.001bn, PTP to NOK881m vs NOK1.456bn, net income to NOK635m vs NOK1.112bn, and EPS to NOK0.6 vs NOK1.07. S&P Eq Res downgrades to sell and cuts TP to NOK68, while Carnegie keeps outperform as it argues the 1Q PTP miss has no cash effect.

SPAIN

IBERDROLA Down EUR 0.13 to EUR 9.34... Investment in Germany / British Energy bid - Co. is planning to build a combined cycle plant in Germany, acording to La Gaceta. Says it will have capacity of 1,100 MW and Co. will invest EUR 600m. Co., along with its advisors Dresdner Kleinwort, is preparing the final details of a non-binding offer for British Energy, Expansion reports. Says main competitors are EDF and RWE.

TECNICAS REUNIDAS Up EUR 2.18 to EUR 51.25... Merrill Lynch raises target to EUR 60 from EUR 55, buy. Notes Hellenic Petroleum has confirmed the award to Co. of a contract to upgrade the Elefsina refinery. Says this cements Co.'s leading role in downstream E&C in the region and improves visibility beyond 2010.

SWITZERLAND

SWISS RE Down CHF4.20 to CHF83.45... 1Q net profit falls short of expectations - coming in at CHF624m. Co. disloses an additional quarterly mark to market loss of CHF819m, and estimates a further loss from market fluctuations of CHF200m for last month. Maintains EPS target over the cycle. Overall, Helvea sees no reason to become more positive on the shares at this stage. Argues there are still risks associated with the investment portfolio if economies weaken substantially and pressure remains on non-life pricing and volumes. Keeps at neutral.

UBS Down CHF1.66 to CHF35.22... Says will cut 5,500 jobs - representing almost 7% of its total workforce. This comes as Co. reports a 1Q net loss of CHF11.535bn, broadly in line with expectations, and says it expects financial industry conditions to remain difficult.

SWISS LIFE Down CHF6.25 to CHF311.50... 1Q premium income disappoints - Co.'s 1Q premium income slides 3% to CHF6.6bn, missing consensus. Premium income in Switzerland fell 8% against the strong growth experienced a year before. Co. sticks with previously given guidance. In broker action, WestLB raises target price to CHF365 from CHF335, keeps at add. Thinks the significance of the 1Q statement is limited as Swiss Life's massive reorganisation of recent months was not fully visible in the 1Q figures. Goldman lifts target price to CHF327 from CHF294, keeps at neutral.