Sector movers: Demerger plans not on C&W agenda
Telecoms firm Cable & Wireless is sharply lower ahead of an analyst and investor event later today, after the company said there will be no information on whether it intends to split itself into two parts via a demerger.
The company is to announce new growth targets today for the next five years and reiterate its EBITDA guidance for 2007/08.
The group said revenue growth for the next five years will be between 5% and 8% per year and EBITDA growth at between 20% and 25% per year.
Capital expenditure will be about 10% of revenue throughout the period and free cash flow before financing will grow to around 50% of EBITDA, it added.
It said Europe, Asia & US will see strong growth over the coming years and added that it was well placed to benefit from growth in Asia.
The group said there has been progress compared with the plans set out in February 2006, including improved service, reduction in business complexity, reduced cost base and better quality earnings.
Integrated ferrochrome producer International Ferro Metals said results are in line with expectations despite production problems but added that the industry-wide electricity supply concerns still remain.
"We continue to achieve increasing ferrochrome prices and the outlook for demand remains very positive. This is driven largely by the strong growth in developing countries like China," said the group.
Production was hampered at the start of the financial year when two of its furnaces were temporarily disrupted as well as electricity supply interruptions.
The group said a 10% reduction in electricity supply, imposed by South African electricity supplier Eskom, will reduce its ferrochrome production by around 12%. It anticipates operating at this level of electricity supply for the rest of the financial year.
Elsewhere in the industrial metals sector Ferrexpo was marked higher after Citigroup initiated coverage on the stock with a "buy" recommendation and a price target of 430p.
Top performing sectors so far today
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Industrial Metals 8,573.40 +3.70%
Forestry & Paper 4,397.40 +3.62%
General Financial 7,004.70 +1.82%
Real Estate 3,650.90 +1.21%
Automobiles & Parts 4,536.80 +0.88%
Bottom performing sectors so far today
Fixed Line Telecommunications 2,911.60 -2.38%
Insurance (non-life) 1,171.10 -2.11%
Personal Goods 7,234.20 -1.59%
Electricity 7,065.00 -1.24%
Oil & Gas Producers 7,510.60 -1.17%
