Earnings help European shares extend rally; Sabadell slumps on TSB bid

jueves 12 de marzo de 2015 07:58 GYT

* FTSEurofirst 300 up 0.3 pct, hits seven-year high

* Drop in euro seen boosting earnings by 10-13 pct

* European corporate results better than U.S. earnings (Adds detail and quotes)

By Blaise Robinson and Alistair Smout

PARIS/LONDON, March 12 (Reuters) - European shares rose in early trading on Thursday, helped by forecast-beating results, to extend sharp gains made in the previous session, although Sabadell dropped after making a bid for TSB.

Shares in German potash and salt miner K+S gained 5.9 percent and Dutch marine engineering company Boskalis added 2.4 percent after reporting better than expected results.

As Europe's earnings season draws to an end, Thomson Reuters StarMine data shows that companies have reported a 15.9 percent rise in quarterly profits - the biggest rise in European earnings since mid-2011 and well ahead of a 6.8 percent rise in U.S. quarterly profits - as European firms start to reap the benefits of a weaker euro.

The stand-out faller was Spain's Banco de Sabadell , down 9.3 percent after making a takeover bid that valued the British bank TSB at around $2.6 billion. TSB rose 25 percent.

At 1140 GMT, the FTSEurofirst 300 index of top European shares was up 0.3 percent at 1,578.97 points.   Continuación...