Companies reporting this week

By THIS IS MONEY
Updated:

 

ENGINEERING and building-based stocks will provide the main focus for investors this week. Annual operating profits at engineering group Smiths should rise around 3% to £372m on Wednesday after offsetting the effects of currency movements and higher research and development costs with productivity gains.

The company has been refocusing on its core aerospace, medical and detection operations, but with acquisitions currently lagging behind disposals investors will be keen to hear clues on potential purchases.

Investors will be looking for news on a cost-cutting drive when glassmaker Pilkington issues its first half-trading update on Thursday.

The company is targeting cost savings of $35m (£21m) by March 2004 through its 'step change' programme as it battles against falling glass prices in Europe and North America.

Around half of its earnings come from Europe, but the continued pressure on prices and the weakness of other currencies look likely to have offset gains from the strong euro. Analysts are predicting pre-tax profits of around £153m in the year to March 31.

Unfavourable currency movements are expected to lop as much as £20m from building materials group Wolseley's annual results on Tuesday.

Despite the pressure of the weak US dollar, fund manager Gerrard expects Wolseley to hold full-year profits at around £54.7m, helped by a strong performance from the company's UK division.

Another factor affecting Wolseley, which trades as the Hire Center, the Timber Center and the Builder Center, is likely to have been adverse weather conditions in North America. It generates half its business in the region.

With computer game retailer Game generating almost all its profits in the second half of the year, investors will be more concerned by Christmas releases than an expected fall in first-half figures on Tuesday.

Profits are likely to come in at £1.7m, down on the £3m seen a year earlier, because the high-profile launch of the Nintendo GameCube and Microsoft Xbox consoles lifted demand last time around.

Forecasts for the full-year are for profits in the region of £34.2m with Game hoping to avoid a repeat of last year's pre-Christmas profits warning when it was forced to cool hopes of a bumper trading season.

Housebuilder Barratt Developments should deliver an 11th successive year of growth on Wednesday when profits before exceptional items are likely to rise to £272m from £220m a year earlier.

The Newcastle-based company's wide geographical spread, coupled with the building of homes ranging in price from £60,000 to £1.6m, should have guaranteed the latest set of strong results.

But the focus of investors will be on future consolidation in the house building sector following Taylor Woodrow's surprise move to buy rival Wilson Connolly earlier this month.

Investors will be expecting magazine and broadcasting group Emap to show signs of benefiting from the tentative recovery in the advertising market when it publishes a trading statement on Tuesday.

The last update in July maintained hopes that Emap would meet full-year targets for the year to March, although there was some concern about the competitive music television market.

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