DJ MARKET TALK: JP Morgan Keeps AWD At Neutral On 2Q

08/15/06 - Dow Jones Newswires

0844 GMT [Dow Jones] JP Morgan keeps AWD (AWD.XE) at neutral after 2Q figures. Says results were good with an EBIT margin of 9.7% versus brokerage's estimated 9.3%. Says free cashflow was strong, due to faster collection of commission receivables. But says UK EBIT margin was only 4%, below the company's 10%-or-above target. JPM notes company's short-term strategy is to grow revenues and later to address margin. Notes tax rate rose to 38% in 2Q after 34% in 2Q '05. This was due to a one-off EUR1M payment linked to tax audit of '04. JPM says revenue growth in Germany reflects strong Riester pension sales, sales of equity-based mutual funds and unit-linked life. Shares -1.4% at EUR26.90. (JUM)

 
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(END) Dow Jones Newswires

August 15, 2006 04:44 ET (08:44 GMT)

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