Disappointing second quarter for European companies . According to consultants Morgan Stanley, the second quarter of 2012 will be the most disappointing for European businesses since 2003. The profits of many of the 260 companies on the Stoxx index (49% of them in fact) are lower than expected, with 46% of companies making higher-than-expected profits. Taken as a whole, European companies' profits fell by 12% in Q2 2012. A wider sample of 533 companies surveyed by MSCI Europe (Morgan Stanley Capital International, the indices most commonly used by portfolio managers), saw 33% doing better than expected and 36% worse than expected. The situation in Europe is contrasts with US companies, 68% of which have exceeded expectations. Morgan Stanley says that small companies have dragged the index down and some industries are worse affected than others. Technology has registered the most disappointing results and other areas have also suffered, such as community services, the financial industry and healthcare. Geography has played its part - companies focussing less on the eurozone have done better during the crisis. Lack-lustre profits have not prevented markets from pressing ahead since the end of July, and the analysts are now forecasting a slight rise in profits for 2012 in Europe to the tune of 1.1%. (IL/transl.fl)