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European markets end lower
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February 20, 2002: 12:47 p.m. ET
Tech stocks lead declines after poor sales outlook from Logica, weak start on Nasdaq
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LONDON (CNN) - European markets ended lower on Wednesday, led by tech stocks after a weak sales outlook from Logica and early declines on Nasdaq.
London's FTSE 100 fell 1.3 percent to 5,024.1 and the CAC 40 blue chip index in Paris lost 0.4 percent to 4,238.99, while Frankfurt's electronically traded Xetra Dax was down 0.3 percent to 4,749.96 in late trading (the German market closes at 1900 GMT).
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, slipped 0.7 percent, with the IT and computer sectors leading the declines.
UK software group Logica (LOG) was the top loser in London, ending down 16.9 percent -- but off its lows for the session -- after it slashed growth forecasts for its mobile network unit due to an expected drop in revenue in Japan. The warning came as the London-based company, which is the world leader in text messaging software, posted better-than-expect first-half profit.
Cap Gemini (PCAP), Europe's biggest computer services company, was among big losers in Paris, dropping 2.4 percent - also off its lows for the day - ahead of its earnings results on Thursday. French telecoms equipment maker Alcatel (CGEP) recouped some of its losses to finish down 1.5 percent, while German technology giant Siemens (SIEG) was 1.6 percent lower in late trading in Frankfurt.
In the telecoms sector, British group Cable & Wireless (CW) dropped 7.2 percent after saying it expected annual revenues at its core global networking division to fall 10 percent. It also cut the unit's underlying profit margin.
Nokia, the world's biggest mobile phone operator, fell 5.5 percent after a Spanish newspaper reported that Telefonica Moviles had picked rival Ericsson, the world's largest supplier of high-speed mobile networks, to work on its next generation network. Ericsson's shares rose 2 percent on the report, as well as upbeat comments from chief executive Kurt Hellstrom, who said he was "cautiously optimistic about this year and I think we may have seen the worst."
Meanwhile, DaimlerChrysler (DCXG), the world's third-largest car maker, was up 1.6 percent in late trading in Frankfurt after it reported a loss of  662 million ($589 million) for 2001 compared with a profit of 7.89 billion a year earlier. Sales dipped 0.6 percent to 152.8 billion.
German car maker Volkswagen (VOWG), Europe's biggest, fell 2.1 percent after posting a strong overall 2001 profit late on Tuesday but also revealed a very weak fourth quarter and left investors begging for hints as to its outlook this year.
WPP Group, (WPP) the world's second-largest advertising company,
was the best performing stock in London, rising 3.6 percent. On Wednesday, it said profit rose 11 percent last year, boosted by the purchase of Young & Rubicam. But the company warned revenue would be flat on a like-for-like basis in 2002.
In the financial sector, Germany's second-biggest bank HVB Group [FRE:HVMG] on Wednesday posted a 35 percent drop in net profits for 2001 as Argentina's economic crisis and the collapse of U.S. energy firm Enron helped push bad loan provisions higher. However, the results were not as bad as the market had expected, and its shares were up 3.7 percent in late Frankfurt trading.
Invensys (ISYS), Britain's biggest engineering company, plunged 7.3 percent as its stock continued to fall after announcing on Tuesday that it plans to sell it industrial components and systems units to reduce debt by £1.5 billion ($2.1 billion).
Among Europe's smaller markets, Amsterdam's AEX index was down 0.5 percent and Milan's MIB30 index slipped 0.2 percent, while the SMI in Zurich was 0.6 percent lower.
In the U.S. on Wednesday, the Dow Jones industrial average, got a lift at midday from components Walt Disney and Honeywell International -- but the technology stocks that dominate the Nasdaq composite index fell due to downgrades and continued accounting concerns.
The Nasdaq composite index fell 2.85 points, 0.2 percent, to 1,747.76, while the Dow Jones industrial average rose 37.36 points, or 0.4 percent, to 9,782.5.
-- Reuters contributed to this report 
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