LONDON, April 2: European company profits will not grow at the same breakneck pace in 2007 as the past few years but fears of abrupt turn in earnings appear unfounded as a US slowdown is offset by strong economic growth elsewhere.

Headlines pointing to a crisis in the US subprime mortgage market and warnings of a possible recession in the world's largest economy have contributed to volatility in world equity markets in recent weeks, but have had a limited impact on the earnings outlook for European companies.

North America accounts for only around 20pc of European company sales, according to UBS estimates, dwarfed by the 65pc within the region and nearly matched by the remaining 15 per cent elsewhere in the world.—Reuters