UK Output Rises; Vodafone, Yell Group Fall, Schroders, Barclays Rise

Marcus Jacob
09 Nov, 2010
New York City

UK total production output increased 3.8% in September. Trade deficit decreased in the month to

[R]4:00 PM London – UK total production output increased 3.8% in September. Trade deficit decreased in the month to £4.6 billion compared to deficit of £4.9 billion in August. Vodafone Group reported fiscal first half sales increased 3.9% and operating earnings declined 1.2%.[/R]

FTSE 100 index closed up 23.72 or 0.41% to 5,873.67 and the UK pound fetches $1.61.

The DAX Index increased 0.7% or 49.89 to 6,800.39 and CAC-40 index added 1.05% or 41.01 to 3,954.71. The benchmark index in Spain rose 1.4% and Milan surged 1.8%.

Total production output in September rose 3.8% from a year ago. Output in mining increased 2.2% and energy fell 0.8%. Manufacturing output increased 4.8% in September from a year ago month.

The UK trade deficit in goods and services decreased to £4.6 billion in September, compared to deficit of £4.9 billion in August. The goods deficit decreased to £8.2 billion in September compared to £8.5 billion in August. Exports rose £0.5 billion and imports rose £0.4 billion.

Vodafone Group Plc reported fiscal first half sales increased 3.9% to £22.6 billion and operating earnings declined 1.2% to £7.36 billion.

Vodafone also agreed to sell its stake in Vodafone Japan to Softbank for a total price of 3.1 billion. The first tranche sale in December 2010 will raise £1.6 billion and the second tranche sale in April 2012 will raise £1.5 billion.

Vodafone also lifted its full year earnings outlook to a range of 11.8 billion and 12.2 billion and said the company will focus on increasing data services revenues as the 11% of its subscribers have smartphones.

Earnings News

Schroders plc, the global asset management company said third quarter revenues increased to £232.7 million from £172.7 million a year ago. Net profit for the quarter rose to £85.9 million compared to net profit of £54.0 million a year ago.

InterContinental Hotels Group Plc the Holiday Inn chain operator said third quarter revenues increased 5% to $421 million from $401 million a year ago. Net profit for the quarter decreased 7% to $115 million or 35.8 cents per share compared to net profit of $124 million or 23.4 cents a share a year ago.

Yell Group plc, the classified advertising company reported first half revenues fell 8.9% to £895.7 million from £982.8 million a year ago. Net profit for the quarter declined to £21.8 million or diluted earnings 0.9 pence compared to net profit of £25.8 million or diluted earnings 2.8 pence a year ago.

Vodafone Group Plc, a mobile communications company said first half revenues rose 3.9% to £22.6 billion from £21.8 billion a year ago. Net profit for the first half rose 56.5% to £7.5 billion or 14.31 pence per diluted share compared to net profit of £4.79 billion or 9.17 pence per share a year ago.

Stock Movers

Banks and resource stocks traded higher after metals and commodities prices rose on London Metal Exchange.

Barclays increased less than 3% to 293.10 pence after it reported quarter net plunged 76%. The UK based lender said its Core Tier 1 ratio was unchanged at 10%.

BHP Billiton increased 2.1% to 2,481 pence, Rio Tinto gained 2.4% to 4,431.33 pence and Xstrata Plc soared 3% to 1,408 pence. Vendanta Resources plc increased 2.7% to 2,413 pence.

InterContinental Hotels Group Plc declined nearly 5% to 1,148 pence after the hotel chain operator reported third quarter operating profit fell 7%.

Schroders increased 3.5% to 1,638 pence after third quarter profit was ahead of expectations on stronger than expected fund flows.

Yell Group Plc dropped 17% to 12.86 pence after the yellow page directories publisher said first half sales plunged 9% to £896 million.

Vodafone Group declined 0.2% to 174.70 pence after it reported a decline in operating profit. The international telecom carrier also said it expects to get a dividend in 2012 from its joint venture in Verizon Wireless in the U.S.