Companies reporting next week

By THIS IS MONEY
Updated:

 

DEEPLY troubled telecoms giant Marconi will release its long-awaited trading statement on Monday, and in view of the group's devastating profit warnings in July and September, the key question for the market will be - can it survive?

Investors will be nervous ahead of this latest update on the group's fortunes, which forms part of the new management teams' attempts to improve its communication with the City.

The group has announced 10,000 job cuts this year, and infuriated unions by giving former boss Lord Simpson a £300,000 pay-off, while shares have slid so far one analyst has branded them virtually worthless. Traders say the situation remains 'high risk'.

On Tuesday, internet bank Egg is expected to report reduced third-quarter losses - cut from £34.5m to £17m loss. Despite being loss-making, the bank is a darling of its sector, growing at a phenomenal rate, says broker Gerrard.

However it is faced with the same threats as its bigger rivals - a slowing economy and potential bad debts. Investors will be hoping break-even in the fourth quarter is still on the radar screen.

Insurer Prudential, which created Egg, reports on Thursday and is expected to show strong new business sales for the nine months to September 30.

In the UK, sales will probably be flat, with reasonable growth in life and pensions but a downturn in the sales of investment products, reflecting conditions in the equity markets, analysts say. And in the US, sales are likely to be lower than the comparable period.

A trading statement from news information firm Reuters on Tuesday is expected to show that it is meeting its target of 3% growth in underlying revenues. Total sales are expected to come in at £960m, up from £886m for the same period the previous time.

Instinet, the electronic trading business in which Reuters retains a large stake, will report its results separately, although Gerrard highlighted that Nasdaq trading volumes for September would be significantly down due to the terror attacks.

Full-year figures from WH Smith on Thursday are expected to be effected by a fall in profit at its US travel business which has suffered a slide in trading since September 11. Pre-tax profits are expected to come in at £135m, a fall from the £141m last time.

Current trading will be hit by the US travel business, although this will be offset in part by a better performance at its news distribution arm as demand for newspapers increases in the current volatile world environment, Gerrard said.

Chip designer ARM, the former stock market darling, has seen shares benefit recently from a bout of renewed optimism over how its business has fared over the third quarter.

Profits - announced on Monday - are however expected to reflect conflicting fortunes from its intellectual property business, with a strong contribution from licensing fees balanced against weaker royalty income. Third quarter pre-tax profits are expected to come in at £11.6m against £8.9m.

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