Thursday preview: Unilever, C&W, Man, BoE
Nov 04, 2009
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Food and household goods giant Unilever brings out quarterly results on Thursday. Nomura Securities is more optimistic than most of the stockbroking community: 'We are 7% ahead of consensus at the EBIT [earnings before interest and tax] level. Forecast volume growth of +3.3% (consensus +2.3%) with EBIT margin up +140 bps [basis points] (consensus +30 bps),' the broker said.
The Japanese broker thinks the Anglo-Dutch giant is a turnaround play, and sees the possibility for 'surprise on the upside for volume growth recovery as well as margin delivery in Q3/ H2 [third quarter/second half].'
Telecoms company Cable & Wireless (C&W) issues interim figures but the market may be more interested in whether the company is going to revive plans, abandoned last year, to spin off part of the company.
The group is rumoured to be reviving plans to separate C&W International from C&W Worldwide, now that equity markets have picked up again. Investors are hoping that any demerger will be accompanied by a special dividend payment.
C&W's International division primarily services the Caribbean area, and performance here has been hit by a decline in tourist numbers. For the group as a whole, half year revenue is expected to be up 18% to £1.9bn from £1.65bn in the corresponding period of 2008. Underlying earnings before interest, tax, depreciation and amortisation is tipped to rise 29% to £460m from £357m a year ago.
Hedge fund manager updated the market on trading barely a month ago so Thursday's figures should not contain any major surprises.
Profit before tax for the six months to the end of September is estimated at $280m, against $622m a year ago. Before exceptional items, profit will drop to $270m from $729m, the company said.
The focus is more likely to be on funds under management, which stood at $43.8bn at the end of September, up from $43.3bn at the end of June.
Thursday also sees the Bank of England announcing its interest rate decision and, more intriguingly, future policy on its quantitative easing (QE) programme.
Economists are not normally unanimous in their opinions but it would be hard to find a member of that community who is expecting anything other than no change on the interest rate front, but opinions do differ on whether the Bank's Monetary Policy Committee (MPC) will extend the QE programme and, if so, to what extent.
The shockingly poor third quarter gross domestic product figures could tip the balance in favour of the MPC opting to bump up the size of the £175bn programme, with a £25bn rise giving a nice round number.
INTERIMS
BTG, Cable & Wireless, Invensys, Man Group, Shanks Group, Vedanta, Wincanton,
INTERIM DIVIDEND PAYMENT DATE
Brammer, Camellia, Fisher (James) & Sons
FINALS
Henderson Far East Income, Smart (J),
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Initial Jobless Claims (US) (13:30)
Non-farm Productivity (US) (13:30)
Unit Labour Costs (US) (13:30)
Retail Sales (EU) (10:00)
ECB Rate Decision (EU) (12:45)
AGMS
Kofax, Schroder Japan Growth Fund, Swallowfield
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision and Asset Purchase Target (12:00)
Industrial Production (09:30)
Manufacturing Output (09:30)
FINAL DIVIDEND PAYMENT DATE
Framlington Innovative Growth Trust
QUARTERLY RESULTS
Coca-Cola Hellenic Bottling Company SA, Lancashire Holdings, Millennium & Copthorne Hotels, Old Mutual, Unilever
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