Danish shares higher in midmorning led by Novo Nordisk

Danish shares higher in midmorning led by Novo Nordisk

	Published : Wed, 02 May 2007 09:46 By : Agencies Print this Story

COPENHAGEN (Thomson Financial) - Danish shares were higher in midmorning, following overnight gains on Wall Street and led up by Novo Nordisk after the group posted a stronger-than-expected first quarter report, dealers said.

At 10.20 am, the OMXC20 index was up 0.98 pct at 486.66.

Novo Nordisk was up 23.00 dkr at 561.00 after the group posted a better-than-expected first-quarter report, with gross margins particularly strong, analysts said.

Annette Lycke at Carnegie said the group's gross margin came in stronger than expected, and that this was the prime reason for the favourable market reaction.

She added the group's sales were in line with her expectations.

Novo Nordisk posted a first-quarter pretax profit of 2.374 bln dkr, up 37 pct on-year boosted by growing sales and improved gross margins.

Group sales increased 10 pct to 9.818 bln dkr, slightly below market expectations for 9.903 bln dkr according to a survey of analysts from RB Boersen.

Operating profit was up 24 pct at 2.327 bln dkr, versus expectations for 2.193 bln dkr, while net profit increased 41 pct to 1.709 bln dkr, beating expectations for 1.608 bln dkr.

The group's gross margin was 76.4 pct in the first quarter of 2007, versus 73.0 pct a year earlier.

Novo Nordisk said it still expects sales growth above 10 pct in local currencies for the full year 2007.

Vestas Wind Systems gained 4.00 dkr to 360.00. The group's target price was lifted to 360 dkr from 290 dkr at ABN Amro, RB Boersen said.

SAS was up 0.50 dkr at 124.00. The airline operator lost 100 mln dkr due to last week's wildcat strike amongst Danish cabin crews, Danish daily Berlingske Tidende said, citing a letter from SAS Danmark top manager Susanne Larsen to members of the cabin crew union CAU.

East Asiatic Co gained 8.00 dkr to 293.00 ahead of tomorrow's first quarter report.

GN Store Nord, also posting first quarter results tomorrow, was down 0.25 dkr at 63.00.

Among other shares, Danske Bank shed 2.00 dkr to 249.50, extending previous losses after yesterday's first-quarter report, Danisco was up 8.50 dkr at 457.00, and Coloplast added 8.50 dkr to 483.50.

gustav.sandstrom@thomson.com

gs/bsd

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