Concerns over Europe’s recovery has set the stock market reeling in time for the Swedish period. Stockholm Stock Exchange fell on Monday for the sixth day in a row and this year’s stock market rally is now completely erased.
It is especially the last month’s negative economic figures from Germany that made investors nervous. Meanwhile, dilute the turmoil in the uncertainty about growth in China and the knowledge that the American stimulus package is about to expire. As a shadow hangs over Europe also the recent political developments in Russia – which struck both directly and indirectly against the Swedish company with operations in the region.
All in all it is a difficult publicly to appease the company is preparing to present the results of the third quarter. The first large company in reporting the river is as usual engineering giant SKF, which releases its report tomorrow morning Wednesday.
The report is the last of the company’s outgoing CEO Tom Johnstone, who at the turn succeeded by Mr. Danielson, the former CEO of Höganäs . In terms of volume is expected to grow SKF over two per cent on the previous year. During the second quarter, SKF volume growth 3.6 percent, according Inquiry Financials analyst survey.
The argument for SKF is the weak krona, which helps the Swedish export companies along. The recent poor macro climate bodes however bad for the fourth quarter, and many analysts expect the company to come to turn down the forecast.
– We fear that SKF will flag the bad times and expect slower growth in the fourth quarter, says Esbjörn Lundevall, an analyst at SEB.
A sector that usually fare better in times of macroeconomic concern is the banks. While retail companies and telecom companies affected relatively little by the economic downturn, says Esbjörn Lundevall.
An example from the telecom sector are Ericsson, which reports on the 24th October. Lars Söderfjell, an analyst at Bank of Åland, is cautiously optimistic about the company’s report. Predicting precisely Ericsson’s quarterly results is notoriously difficult – and many analysts have over the years had failed.
– The company has talked about an increased growth in the third quarter, the effect of including the rollout of 4G networks in China. Meanwhile, the new projects lower margins, which have an impact on profitability, he says.
also seems to Ericsson’s American operations started rolling again, after a period of zero growth.
Two-reporting companies that do not contend with the economic threat, but well other problems, the media company MTG and Getinge.
Much hangs in the air before the medical technology company’s report on 16 October. A big question mark with Getinge’s share price to fall by as much as 12.3 percent this year is how to deal with the criticism it received from the U.S. regulatory authority FDA.
The criticism from the FDA came nearly a year ago and the quality control at Getinge’s manufacturing facilities. Right now, market players have answers to two important questions: How much will it cost to fix the problems, and how soon can they be solved, says Lars Hevreng, an analyst at SEB.
He expects, however, no clear answers in conjunction with the weekly report.
Even MTG share has had a tough match in the stock market in recent months, where price plummeted by nearly 18 percent. Behind the price drop is a new Russian media law could limit foreign ownership in Russian media. The proposal means that foreign companies may own no more than 20 percent of Russian media companies, to today’s 50 percent and were treated at the end of September in the Russian parliament.
MTG would an amended media law be a noticeable setback when Stenbeck company owns 38 percent of the media company CTC Media, a giant in Russian TV entertainment. MTG reports Oct. 23, the day before the big owner Kinnevik.
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