Michelin

• 1.1% yoy fall in sales (Car/light truck -2.9%, Truck -0.4%, Specialty +4.4%). The company gave profit warning on margins (vs the first reduced ebit target about 2.3pp - 3pp% to 7-7.5%).
• Impact of the rise in raw material prices for the 08 FY will be equal to €750 million.
• Announced a resizing of operations in Italy (shutdown of the Stura plant by the end of 2009 and investments worth €200 million in the coming five years).This will involve 700 employees, who as per word of the company will be relocated.
  

Nokian

• Sales €813.2million (+21.6% yoy), Ebit% 25% (+4pp yoy) and growing by 42%yoy (€200million). EPS +39% (at €1.22). The company saw demand grow in Russia and the CIS area, during the 3rd Quarter of 2008 by +54.9% in spite of the growing risk related to the drop in car sales by 5/10% in 2009 and the forecasted contraction of the GDP (+7% in 2008 and +4/5% in 2009). In North America there has been a 15.4% growth pulled along by the winter tyre business (new legislation in Quebec).
• 4Q '08 expected to be weaker yoy but the 2008 targets were underlined (Sales +12/17% yoy vs +19% consensus)
• Temporary cuts are expected for about a 1000 employees (3 weeks by the end of the year) and for another 100 employees a 7 or 9. Month cut is set for 2009. Total current employees 3877.
• The impact of higher raw material prices on the Fy 08 will be +10%yoy

Continental

• Sales: +60.6% (not at consolidation perimeter level, Rubber Group +4%) Ebit before Amortization/depreciation of intangible assets from PPA: +10% (Rubber Group -10%), Ebit% Rubber Group.
• Sales target for 2008 is equal to €25billion, (-1,4 billion vs latest forecast) the Ebit% target changed on the 13th of September and now equal to8.5%
• The impact of higher raw material prices on the Fy 08 will be +€270 million yoy.
• In a conference call it was announced that the tyre business displayed a marked increase in October, but due to the current state of the market, about 5000 intern positions will be closed. Furthermore, the chance of an eventual breakaway of the tyre division is a possibility. (Currently no decision has yet been taken)

Hankook
The third quarter ended with a loss of KRW14.79 (vs KRW profit of 38.41billion). Sales +19%, Ebit -30%.


Performance of the week
Best: Cooper +32.9%
Worst:Continental-8.4%

Just like all major indices the real-estate EPRA indices bounced up from their lowest levels. This current week and the next one will be very important in order to assess the "health" of the real-estate companies, as the results obtained by many companies in these first 9 months of the year will be published (GAGFAH, IVG, Colonia RE, Beni Stabili, Fonciere des Regions, etc.) Our share closed practically unchanged at Euro 5.5 (+6.6% than minimum set at Euro 5.13, as recorded on the 28th of October). PRE performed better than its German competitors which closed with approximately 10% drops (negative outlook on the German real-estate sector, worsened by the crisis of 12 real-estate funds which have temporarily blocked redemptions due to liquidity hassles.).

Data from the Research Centre for economics and market studies shows a dark three year period ahead for the construction sector, it might have to face a total contraction of about 13% in the period between 2008-2010. The hardest hit sector could be housing, with a reduction in constructions that might amount to a third of total 2007 constructions. A contraction of buying & selling is expected for the end of 2008, this could amount to 17.3% (-143 thousand operations yoy).

The implosion of the Spanish real-estate market has gained speed in august. Buying and selling was reduced, by up to 36.8% compared to the same period in 2007. Registered mortgages also seem to be falling in number (-37.2%), the average sum of loans (-9.6%) and the volume of loaned capital (- 43.2%).

The difference between the high and low level real-estate market is set to increase. (source: Scenari Immobiliari). Despite the increase in supply of houses on the outskirts of urban centres the prices have stabilized, whilst in the centre there is some improvement. As for the prices of houses, the most affected are big city houses (-3.5% yoy) as compared to other major cities (+2%) and small urban centres (+1.6%).

Performance of the week:
Best: Fonciere de regions +23.4%
Worst: Conwert -24.1%

Alcatel-Lucent

• Results for the 3Q 2008 were presented showing a 49% yoy drop of the reassessed Ebit (€40million vs €70 million in 2007). The company, lately managed by the ex-CEO of British Telecom Ben Verwaayen is on track with its annual targets and it also mentioned that its coffers seem to be doing fairly well.
• the future holds the chances of a collaboration with the Italian internet provider ARIA to create a wireless network based on Wimax technology. The project will initially cater to 130 sites in Puglia and Veneto. It is believed that it will be one of the biggest Wimax networks in Europe.

TelecomItalia
The TLC company will set up the new structure of its network in collaboration with Nokia Siemens Networks. The partnership will allow the Italian tlc company to enhance the speed of its mobile network, increasing its ultra-large band services.

Performance of the week
Best: Netgear +23.7%
Worst: Bookham -12.9%