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EARNINGS AT BIG EUROPEAN GROUPS BEAT EXPECTATIONS

A number of Europe’s leading companies yesterday reported stronger-than-expected earnings, underlining the strength of the corporate recovery across the continent.

Heavyweight names such as Siemens, Royal Dutch Shell, Volkswagen and BASF all saw their second-quarter profits beat analysts’ forecasts considerably.

“It’s another good set of results,” said Adrian Cattley, equity strategist at Citigroup. “It is important not to confuse [gross domestic product] with stock markets. Just because European GDP is poor doesn’t mean that European corporate profitability should be poor.”

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