UK Manufacturing at 21-month Low; Xyratex Swings to Loss

Arthi Gupta
01 Jul, 2011
New York City

The UK indexes climbed after manufacturing fell to a 21-month low and Irish factory sector growth declined in June. Vodafone agreed to sell its entire 24.4% interest in Polkomtel to Spartan Capital for

[R]3:00 PM London – The UK indexes climbed after manufacturing fell to a 21-month low and Irish factory sector growth declined in June. Vodafone agreed to sell its entire 24.4% interest in Polkomtel to Spartan Capital for £815 million.[/R]

In London, FTSE 100 Index gained 18.04 or 0.31% to 5,963.62 and the pound edged lower to $1.6011. For the week, the FTSE 100 Index surged 4.7%.

UK Manufacturing Drops

UK manufacturing sector growth declined in June, survey results from Markit Economics showed today.

The seasonally adjusted Markit/Chartered Institute of Purchasing & Supply purchasing managers'' index dropped to 51.3 in June from a revised 52 in May. The latest reading was the lowest since September 2009.

Irish Factory Sector Growth Falls

Ireland''s manufacturing industry contracted in June, data from a survey conducted by NCB and Markit Economics showed.

The NCB purchasing managers'' index for the manufacturing sector fell to 49.8 in June from 51.8 in May.

Vodafone Sells Polkomtel Stake

Vodafone Group Plc agreed to sell its entire 24.4% interest in Poland-based telecom operator Polkomtel SA to Zygmunt Solorz-Zak controlled investment vehicle Spartan Capital Holdings for €920 million or £815 million.

The total consideration implies an enterprise value of €4.5 billion or £4.0 billion and represents a multiple of 6.4x EBITDA for the year ended December 31, 2010.

Gainers & Losers

AstraZeneca PLC gained 0.23% to 3.115 pence after the global biopharmaceutical company said NEXIUM 10 mg and 20 mg capsules have received regulatory approval in Japan for the treatment of acid-related conditions including non-erosive reflux disease, reflux esophagitis, and peptic ulcer disease.

British American Tobacco PLC rose 0.4% to 2,743 pence after the global tobacco company announced two management changes in regional responsibility.

HgCapital Trust PLC fell 0.21% to 181 pence after the investment trust said it intends to sell Mondo Minerals to Advent International Corp.

National Grid Plc climbed 0.24% to 614 pence after the utility company appointed Peter Gershon as Chairman.

Xyratex Ltd. surged 5.56% to $10.26 after the data storage provider reported second quarter revenues dropped 26% to $338.5 million from $455.9 million in the year-ago quarter. Net loss in the quarter was $4.6 million or $0.15 per share compared to net income of $43.7 million or $1.39 per share in the year-ago period.