Earnings: Allied, ABN, Santander

LONDON, England – European companies reporting earnings on Monday include ABN Amro, Allied Domecq and Santander. Here are the highlights of their results.

ABN Amro, the Netherlands's biggest bank, reported a 42 percent slide in first-quarter net profit, after taking a 205 million euro ($184 million) restructuring charge for the closure of its U.S. equities business.

Before the charge, earnings fell about 12 percent and analysts said this was a milder deterioration than expected. They added that an improvement in the bank's efficiency ratio showed its restructuring at home and abroad was saving on costs.

Nevertheless, ABN AMRO Chief Executive Rijkman Groenink's repetition of the group's cautious outlook for this year was mildly disappointing and margins at the bank's wholesale or corporate and investment banking division remain pressured.

ABN AMRO shares -- which earlier this month hit their highest level in 10 months, some 50 percent above their post September 11 lows -- slipped 0.7 percent to 21.92 euros in early Amsterdam trade.

Allied Domecq (ALLD), the world's second-largest spirits group, said pretax profit rose 6 percent in the first six months of its fiscal year. But the company, which makes Ballantine's scotch, Sauza tequila, Beefeater gin and Kahlua liqueur, warned some of its top brands had underperformed in the U.S. after hefty price hikes.

The group, which also runs Dunkin' Donuts and Baskin-Robbins restaurants, reported pretax profits for the six months to February 28 before exceptionals of £251 million ($364.5 million), just above analysts' range of £238-249 million.

Allied's stock rose 2.6 percent to 429.3 pence in early London trading on Monday.

Deutsche Bank (FDBK) posted a 56 percent increase in profit after a one billion euro gain from the sale of assets.

Europe's biggest bank by assets said on Monday net income rose to 567 million euros ($537 million) in the first three months to March 31, from 382 million euros a year ago. Earnings per share rose to 94 cents from 86 cents, said the company.

Deutsche Bank, which has announced plans to cut 9,000 jobs from its 94,800-strong workforce, is under pressure from shareholders to intensify cost-cutting measures as it battles for a place among the top global investment banks.

The bank is Europe's least productive with low profits and a high cost base in Germany. Its stock, which has lost about 20 percent of its value over the last 12 months, slipped 1 percent to 71.13 euros in early Frankfurt trading on Monday.

Spain's biggest bank Santander Central Hispano said first-quarter net profit edged up just 0.3 percent, largely because its Argentine unit contributed nothing in the quarter.

Net profit after minorities was 671 million euros and net interest income, or what the bank makes on loans minus what it pays out on deposits, rose 2 percent to 2.46 billion euros.

Analysts' forecasts for net profit averaged 709 million euros -- an increase of 6.1 percent -- according to a Reuters poll. Net interest income was forecast at 2.56 billion euros.

Santander shares dropped 1.8 percent to 9.87 euros in early Madrid trading on Monday. Santander said operating profit from its Argentine operation had been used entirely for provisions there, so the unit had contributed nothing to the group results. In the same quarter last year it contributed 56 million euros.

Argentina's financial crisis prompted Santander to make provisions of some 1.3 billion euros in its 2001 results -- enough to cover the book value of its entire investment in Argentina.