The half-yearly results of major French groups are overall satisfactory and often exceed expectations. Companies benefit from the weakness of the euro, a recovery in activity in Europe, and the drop in oil prices.
The half-yearly results of French companies are primarily driven by currency gains linked to the weakness of the euro and signs of a recovery in activity in Europe. Industrial groups, for their part, benefit from the decline in oil prices.
The automotive sector is an excellent example of positive news, with Peugeot’s return to profitability for the first time in four years, which has been widely praised by the markets. The near doubling of Renault’s profits also shows that French automakers are fully taking advantage of the rebound in sales in Europe.
In the industrial sector, results are satisfactory. In chemicals, Arkema saw its net profit rise by 67%. Even ArcelorMittal managed to surprise the markets by returning to profitability. Disappointments are rarer: Schneider Electric suffered from a slowdown in its orders in China, and Mersen unsurprisingly issued a new profit warning.
Currency gains linked to the weakness of the euro against the dollar are visible in the accounts of major exporting groups, such as Airbus, Safran, L’Oréal, Air Liquide, not to mention LVMH and Kering in the luxury sector.
The financial sector, which had been severely shaken by the Greek crisis, is bouncing back with the first banking publications. BNP Paribas announced very solid results that reassure the market. Natixis, for its part, regained good momentum in terms of activity and results.
