Cadbury, SABMiller Rise, Barclays Loss

123jump.com Staff
15 May, 2008
New York City

Cadbury indicated that profit margin will be 1.5% higher than a year ago and BT Group reported fourth quarter sales increased 2.5%. SABMiller second half profit rose 24% to $1.07 billion and for the year profit rose $2.02 billion. However, Barclays reported a loss of

[R]1:00PM New York, 5:00PM London - Barclays writes down £1.7 billion and reported a loss of £1 billion in the first quarter. Cadbury expects margin to improve.[/R]

London stock indexes rose marginally buoyed by strong earnings and forecasts by Cadbury and SABMiller.

In London trading FTSE 100 rose 0.58% or 35.8 at 6,251.80. Of the 102 FTSE 100 stocks 65 gained and 37 declined. BT Group led advancers in the index shares with a rise of 5.38% followed by ICAP Plc rising 4.70%.


Barclays writes down £1.7 billion

Barclays, the third largest British bank with a significant presence in the U.S. said in its interim management statement that the first quarter 2008 earnings are below that in the first quarter of 2007, without disclosing the results in details. The bank also stated that Tier 1 capital and equity ratios have worsened since it reported them at the end of the last year. Ratios then were 7.6% and 5.1% respectively.

The company reported a loss of £1.1 billion in the quarter on the charge of £1.7 billion related to credit market losses and still has exposure to £14 billion pounds to subprime and other asset backed loans at the end of the first quarter. The leverage finance loan exposure is £7.4 billion. The charges related to credit market included £598 million loan impairments, £495 million against asset backed securities and £513 million losses in credit market derivative exposures.

SABMiller profit increases 24%

SABMiller reported today that second-half profit increased 24% to $1.07 billion on price increases and higher beer sales in the United States and Eastern Europe. Annual profit in the year ending March 31st increased to $2.02 billion.

Total beverage volumes were up 6% to 288 million hectolitres and total lager volumes were up 11% to 239 million hectolitres, including the impact of acquisitions in China and Europe.

Gainers & Losers

BT Group led advancers in the FTSE 100 index shares with a rise of 5.38% followed by increases in ICAP Plc of 4.70%, in Cairn Energy of 4.25%, in SABMiller of 3.91%, and Cadbury of 3.86%.

BT Group Plc fourth quarter sales rose 2.5% to £5.42 billion.

Cadbury rose after reporting profit margins will be about 1.5 percentage points higher than the previous year.

Royal Bank of Scotland led decliners in the FTSE 100 with a drop 13.15% followed by losses in Thomas Cook Group of 5.10%, in Sage Group of 2.22%, in Barclays Plc of 1.99%, in Carphone Warehouse of 1.65%.

Royal Bank of Scotland fell after Barclays said write downs increased to £1.7 billion in subprime related losses. Alliance & Leicester shed 1.35% and HBOS Plc of 1.06%.