LONDON (Alliance News) - The following is a summary of top news stories Tuesday.
----------
COMPANIES
----------
Consumer goods giant Unilever PLC reported a drop in revenues in the fourth quarter as expected, but beat analysts expectations for underlying sales growth, margin improvements, and core earnings per share, for both the fourth quarter and the financial year as a whole. For the fourth quarter, Unilever reported total revenues of EUR11.8 billion, in line with analysts consensus, and driven by its personal-care division, which more than offset softness in its food division and its under-invested Spreads business. It reported underlying sales growth of 4.1%, with volume up 2.7% and pricing up 1.4%.
----------
Shares in IMI PLC were amongst the biggest gainers Tuesday morning, after the group announced the terms of its proposed return of GBP620 million to shareholders, following the completion of the disposal of its Beverage Dispense and Merchandising divisions. The UK-based engineering company said that it intends to return 200 pence per existing share to shareholders, which amounts to around GBP620 million. IMI also Tuesday proposed a share capital consolidation in order to maintain the market price for IMI shares. Under the plan, IMI shareholders will receive seven new shares for every eight existing share they currently own.
----------
Engineering firm Melrose Industries PLC said it plans to use part of the net proceeds from recent disposals to return about GBP600 million in cash to shareholders. The cash return represents a proposed return of 47 pence per existing ordinary share. The company said the balance of the net proceeds has been used to pay down existing borrowings.
----------
Carphone Warehouse Group PLC reiterated its full-year guidance, as it saw like-for-like revenue growth in the third quarter ended December 28, 2013, and saw encouraging progress on its sales of 4G services. Mobile-device retailer expects full-year headline earnings per share of between 17 pence and 20 pence, and expects headline earnings before interest and tax of between GBP140 million and GBP160 million. The company said that, whilst market conditions in Europe remained challenging, it was encouraged by customer demand for 4G services. It expects this demand to continue gaining momentum as 4G networks are expanded across Europe.
----------
Brewer SABMiller PLC said growth in the third quarter continued to be driven by its emerging markets business, which drove sales higher, despite continued weakness in its European and North American businesses, and currency headwinds. SABMiller said that group net producer revenue for the third quarter grew by 4%, driven by combination of pricing and volume growth, particularly in Africa, Latin America and China. It said group net producer revenue per hectolitre grew by 2% both on a constant currency basis. Organic growth rates exclude the impact of acquisitions and disposals.
----------
PZ Cussons PLC said revenue for the half-year was up 4.1% on the comparable period, in line with management expectations, as it boosted its interim dividend to 2.53 pence per share while reporting that its trading environment remains challenging. In its half-yearly report for the six months to November 30 2013, the consumer products group, which operates in Europe, Asia and Africa, said pre-tax profit before exceptional items was boosted, up 7.9% to GBP47.6 million, up from GBP44.1 million. PZ Cussons has raised its interim dividend payment by 7.7% to 2.53 pence per share from 2.35 pence.
----------
African Barrick Gold PLC said it has exceeded its initial full-year gold production guidance and continued its cost-reduction strategy. The FTSE 250-listed East Africa-focused gold production company said its gold production of 641,931 ounces for the twelve months ended December 31, 2013 was 3% higher than the previous year and significantly exceeded the company's full-year production guidance of between 540,000 and 600,000 ounces of gold.
----------
Otto Energy Limited said it has executed final binding agreements with BHP Billiton Petroleum (Philippines) Corporation or BHPB to terminate the farm-out agreement between the two parties over Service Contract 55 or SC55, offshore the Philippines. Otto noted that it has submitted a request to the Philippines Department of Energy or DOE for re-assignment of BHPB's 60% working interest to Otto, taking Otto's working interest in SC55 to 93.18%.
----------
The Commons Energy Select Committee is to question bosses of UK energy distribution companies Tuesday about power cuts over the Christmas period, according to the BBC. The committee will ask about the response towards customers, which has been criticised, and discuss the compensation levels paid to those left without power. The companies attending the committee meeting are Scottish and Southern Energy PLC, Scottish Power Ltd, UK Power Networks, Electricity North West, Western Power Distribution and the Energy Networks Association.
----------
The Restaurant Group PLC said Chief Executive Officer Andrew Page will retire in August. The restaurant and pub operator has commenced its search for a replacement, it said in a statement.
----------
MARKETS
----------
UK stock indices are moving sideways for the second consecutive day, despite Unilever providing a boost to Food Producers.
----------
FTSE 100: up 10.31 at 6,847.04
FTSE 250: down 19.84 at 16,207.27
AIM ALL-SHARE: down 1.16 at 881,18
----------
Conflicting results from the German and eurozone ZEW surveys is causing some volatility in the euro, while global investors await the reopening of US markets following a holiday on Monday.
----------
GBP-USD: slightly higher at USD1.6429
EUR-USD: down at USD1.3539
GOLD: down at USD1,248.05 per ounce
OIL (Brent): up at USD107.75 a barrel
(changes since end of previous GMT day)
----------
ECONOMICS AND GENERAL
----------
The value of mortgages disbursed by UK banks remained broadly stable in December from the previous month, figures released by the Council for Mortgage Lenders revealed. The total value of mortgage lending was GBP17 billion in December, which was largely unchanged from the the November figure. Compared to December 2012, however, the value surged 49%. This year's figure was the highest recorded for the month of December since 2007.
----------
Germany's economic confidence weakened unexpectedly in January, survey data from the Centre for European Economic Research/ZEW showed. The indicator of economic sentiment fell 0.3 points to 61.7 in January. The score was expected to rise to 64. The assessment of the current economic situation climbed 8.8 points to 41.2, its highest mark since May 2012.
----------
Residential property prices in the Euro area increased for the second time in a row in the September quarter, and at a faster rate than in the second quarter, data released by Eurostat revealed. The house price index grew 0.6% sequentially in the third quarter, which was faster than the 0.2% gain recorded in the second quarter. Year-on-year, house prices decreased 1.3% during the three-month period. This followed a 2.4% contraction in the June quarter.
----------
World economic growth is set to accelerate this year as well as the next, a report published by the United Nations showed Monday, as advanced economies started to recover and emerging economies stopped further slowdown. The U.N. forecasts the world economy to grow 3% in 2014 after a 2.1% growth in 2013. The economy is seen expanding 3.3% in 2015.
----------
The International Energy Agency nudged up its global oil demand growth forecast for the year 2014, citing demand strength. Crude oil markets firmed in December on seasonally stronger winter demand in the Atlantic basin, it noted. The IEA, in its monthly Oil Market Report released Tuesday, moved up its global oil demand forecast for the year 2014 by 1.3 million barrels per day (mbd) on stronger-than-expected 4Q13 global oil demand.
----------
An explosion rocks a stronghold of the Lebanese militant group Hezbollah in the capital, Beirut, police say.
----------
Moody's Investor Service has upgraded Ireland's sovereign debt rating to an investment grade of Baa3, with a positive outlook, from a speculative grade of Ba1. "The first driver of the upgrade is the recent acceleration of economic growth", Moody's said in its new rating, which was issued on Friday. This "indicates an increased likelihood of securing the sustained long-term growth needed to achieve a turnaround in Ireland's public finances," the agency added.
----------
Hundreds of radical opposition supporters pelted police with Molotov cocktails and cobblestones in the Ukrainian capital overnight, local media reported. Ukrainian riot police dismantled a barricade and a catapult built by protesters as the clashes continued in Kiev. The protesters also began chasing alleged provocateurs and rounded up several young men in the early morning, reports said. Opposition leader and former boxing champion Vitaly Klitschko warned protesters that the government was sending paid thugs to destabilise the situation.
----------
UN Secretary General Ban Ki-moon revoked his invitation for Tehran to attend Wednesday's Syrian peace conference, saying Iranian officials had failed to support the goals of the international talks. After Ban's invitation late Sunday to Iran, a key ally of President Bashar al-Assad's regime, the Syrian National Coalition had threatened to back out of the talks. The coalition, slated to represent the opposition at the talks in Montreux, Switzerland, insisted that Iran must accept formation of a transitional government in Syria as a condition for its attendance. The group late Monday said it would participate, after Ban rescinded his invitation to Iran.
----------
Copyright © 2014 Alliance News Limited. All Rights Reserved.
2 Sep 2014 10:18
