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UPDATE 1-BAE Systems H1 earnings up 14 pct, sees FY growth

July 30, 2010 By vani Leave a Comment

LONODN, July 29 (Reuters) – BAE Systems (BAES.L) reported a 14 percent rise in first-half earnings and said it expected to deliver growth in the full-year despite expected lower sales at its land vehicle unit and cuts in European defence budgets.

Europe’s largest defence contractor on Thursday posted underlying earnings before interest, taxes and amortisation of 1.11 billion pounds ($1.73 billion) on sales 9 percent higher at 10.64 billion pounds for the six months to the end of June.

The company, which on Wednesday signed a 500 million pounds deal to supply India with 57 Hawk jets, increased the interim dividend by 9 percent to 7 pence per share but said it “anticipates a challenging trading environment” ahead.

BAE wants to grow its customer support and services business to offset expected cuts in UK defence procurement as Britain moves to cut a massive budget deficit.

Shares in BAE, which have fallen 10 percent in the last three months on concerns about potential cuts to European defence budgets, closed at 317 pence on Wednesday, valuing the company at around 10.80 billion pounds.

Despite the looming cuts, BAE, which derives around a fifth of its sales from Britain, said it saw unprecedented levels of interest from Middle Eastern and Asian governments at last week’s Farnborough airshow. [ID:nLDE66K206]

(Reporting by Rhys Jones; Editing by Matt Scuffham)

($1=.6402 Pound)

Filed Under: International News Tagged With: 500 million pounds, Amortisation, Asian Governments, bae systems, Baes, budget deficit, Defence Budgets, Defence Contractor, European Defence, Farnborough Airshow, hawk, interim dividend, JETS, Massive Budget, pence, reuters, Rhys Jones, services business, Uk Defence Procurement, unprecedented levels

UPDATE 1-African Barrick cuts FY production guidance

July 28, 2010 By vani Leave a Comment

LONDON, July 27 (Reuters) – African Barrick Gold (ABG) (ABGL.L), which floated in London this year, has cut its full-year production guidance due to delays in accessing higher grade from its new Buzwagi mine in Tanzania.

It expects to produce 750,000-800,000 ounces of gold for the year, at a cash cost of $500-550 an ounce, down from its 800,000 to 850,000 ounce target.

ABG’s chief executive told Reuters in June that production this year would likely end up at the low end of its 800,000 to 850,000 ounce target after a slow ramp up at its new Buzwagi open pit mine. [ID:nLDE65L22D]

On Tuesday, the FTSE 100 miner said first-half attributable production was 356,208 ounces, up 23 percent year-on-year, at cash costs of $529 per ounce.

The miner reiterated that it expects higher grade primary sulphide ore to be increasingly mined in the second half and for production to rise at Buzwagi.

First-half net income jumped 217 percent from the year-earlier period to $99 million and the company said it plans to pay an interim dividend of 1.6 cents per share.

Shares in the FTSE 100 group closed on Monday at 550 pence, just below the IPO price. Gold prices XAU= rose 13 percent in the first half of 2010 to touch a record $1,264.90 an ounce in June on concern over euro zone sovereign debt levels. [GOL/]

The market has viewed the company, which has four producing gold mines in Tanzania, with some caution compared to its rivals and is looking for African Barrick to establish a track record of organic growth or make an acquisition elsewhere in Africa.

ABG, spun off on March 19 from its Canadian parent Barrick Gold Corp (ABX.TO), the world’s largest gold miner, after raising 581 million pounds via an initial public offering at 575 pence a share.

Barrick Gold will announce its second-quarter results on Thursday. [ID:nN22125838]

(Reporting by Julie Crust; editing by Rhys Jones)

Filed Under: International News Tagged With: Abg, Attributable Production, Barrick Gold Corp, Debt Levels, Euro Zone, ftse 100, gold miner, Gold Mines, Gold Prices, Initial Public Offering, interim dividend, Ipo Price, Open Pit, Organic Growth, Rhys Jones, Rose 13, Share Shares, sovereign debt, sulphide, target

BP’s Hayward to be offered role at TNK-BP: report

July 28, 2010 By vani Leave a Comment

(Reuters) – BP Plc Chief Executive Tony Hayward is to be nominated for a board position at its Russian venture TNK-BP when he steps down from his current role, Sky News reported, citing sources.

TNK-BP declined to comment on the Sky News report on Monday when contacted by Reuters.

BP is expected to install American Bob Dudley as CEO, sources close to the company said, replacing Hayward who has come under fire for his gaffe-prone handling of the worst oil spill in U.S. history.

Dudley, the U.S. executive managing the response operation to the spill in the Gulf of Mexico, is poised to get the top job in the next 24 hours, a move that could soften U.S. criticism of the British oil major.

Shares in BP closed up 4.6 percent at 417 pence, valuing the business at about 80 billion pounds ($123.6 billion).

(Reporting by Rhys Jones; Additional reporting by Vladimir Soldatkin; Editing by David Holmes)

Filed Under: International News Tagged With: Board Position, bp, Bp Plc, British Oil, ceo, chief executive, Citing Sources, david holmes, dudley, Gulf Of Mexico, hayward, news report, Oil Spill, pence, reuters, Rhys Jones, sky news, Tnk Bp, top job, vladimir

AIRSHOW-GKN wins $600 mln engine deals, A350 contract

July 20, 2010 By vani Leave a Comment

England, July 19 (Reuters) – British airplane parts maker GKN (GKN.L) has won contracts to make components for Rolls-Royce (RR.L) and General Electric (GE.N) aircraft engines and parts for Airbus’ new 350 XWB plane.

Under a deal worth $300 million to GKN, the company will make tail bearings for Rolls’ Trent 700 and 1000 model engines at its El Cajon facility in California until 2020.

GKN also said it had signed a five-year deal worth $300 million with GE Aviation to supply aluminum and titanium components for a range of commercial and military aircraft engines.

The company added that it won two contracts to make composite parts for the landing flaps of the wings for EADS (EAD.PA)-owned Airbus’ new wide-body A350 XWB plane.

GKN, which declined to give a value for the Airbus deal, said it would deliver the first components for the XWB’s developmental flaps in early 2011. (Reporting by Rhys Jones; Editing by Steve Orlofsky)

Filed Under: International News Tagged With: airbus, Airplane Parts, aluminum, Bearings, contracts, EAD, EADS, El Cajon, general electric, Gkn, Military Aircraft Engines, mln, Model Engines, Orlofsky, reuters, Rhys Jones, rolls-royce, rr, Titanium Components, wings

UPDATE 1-Wincanton profit falls 16 pct, eyes 2010/11 growth

June 11, 2010 By vani Leave a Comment

LONDON, June 10 (Reuters) – British haulier Wincanton (WIN.L) posted a 16 percent fall in full-year profit, hit by lower client activity and the recession, but predicted a return to growth in 2011 as it benefits from the economic recovery.

The company, which transports goods such as food, documents and materials for recycling around the UK and mainland Europe, on Thursday reported an underlying pretax profit of 34.7 million pounds ($50 million) on revenues 7.6 percent lower at 2.18 billion for the year to the end-March.

Wincanton was expected to post an average pretax profit of 35.7 million pounds for the year, down from 41.3 million last year, according to a Thomson Reuters poll of five analysts.

“We remain cautious about the economic outlook but are nonetheless targeting an improvement in underlying performance next year and a return to growth,” Chief Executive Graeme McFaull said in a statement.

“Through next year and into the medium term, we expect Wincanton’s portfolio of activities in the UK & Ireland to benefit strongly from economic recovery.”

The company, whose biggest clients include drug-maker GlaxoSmithKline Plc (GSK.L) and retailer Tesco Plc TSC.L, held the final dividend at 10.08 pence and said a restructuring of its German unit would enable its business in mainland Europe to grow in the coming year.

Shares in the company, which have risen 13 percent in the last three months, closed at 225 pence on Wednesday, valuing the business at around 260 million pounds.

(Reporting by Rhys Jones; editing by Paul Sandle)

Filed Under: International News Tagged With: 50 million, dividend, economic outlook, economic recovery, german unit, GlaxoSmithKline, Glaxosmithkline Plc, gsk, Mainland Europe, Medium Term, pence, Pretax Profit, recession, reuters poll, Rhys Jones, Sandle, Tesco Plc, tsc, Uk Ireland, Wincanton

UPDATE 1-Chemring mulling ADG deal options due to U.S. probe

June 2, 2010 By vani Leave a Comment

LONDON, June 1 (Reuters) – British military-goods maker Chemring (CHG.L) said it would not proceed with its $59 million acquisition of Allied Defense Group (ADG.A) due to an ongoing corruption investigation into a former employee of one of the U.S. firm’s units. Earlier this year ADG, which Chemring agreed to buy in January, said an employee at its Mecar USA subsidiary was being investigated by the U.S. Department of Justice (DoJ) for the alleged bribery of foreign government officials to win business on behalf of an unrelated U.S. company.

The DoJ has since widened its probe beyond matters related to the former employee of Mecar USA, which manufactures and sells ammunition and related products to the U.S. and foreign governments.

“In light of this feedback from the DoJ, the Chemring board has concluded that it is presently unwilling to consummate the acquisition of ADG pursuant to the terms of the merger agreement,” Chemring said in a statement on Tuesday.

“Chemring is now reviewing its options with regards to ADG, which may include a restructuring of the transactions contemplated by the merger agreement.”

Shares in Chemring, whose products help fighter planes avoid missile attacks, were 2.7 percent down at 3,085 pence by 0806 GMT, valuing the group at around 1 billion pounds ($1.5 billion).

(Reporting by Rhys Jones; Editing by Paul Sandle)

Filed Under: International News Tagged With: Allied Defense Group, bribery, Chemring, CHG, Corruption Investigation, Deal Options, Doj, Fighter Planes, Foreign Government Officials, Mecar, Merger Agreement, military goods, missile attacks, pence, reuters, Rhys Jones, Sandle, U S Company, u s department, Usa Subsidiary

BA, Iberia seal long-awaited merger deal

April 9, 2010 By vani Leave a Comment

MADRID, April 8 (Reuters) – British Airways (BAY.L) and Spanish carrier Iberia (IBLA.MC) signed a merger agreement on Thursday, sealing a long-awaited deal to create Europe’s second largest airline by passenger kilometres.

Industrials

The deal, which creates a group with a combined market value of around $7.8 billion, ends the British flag carrier’s long pursuit of Iberia, and will allow it to emulate rivals Lufthansa (LHAG.DE) and Air France (AIRF.PA) who have successfully acquired smaller peers.

“The terms and conditions of the merger agreement are in accordance with the memorandum of understanding signed by both airlines in November,” the companies said in a joint statement.

BA shareholders will have 55 percent of the combined firm, to be headquartered in London, while Iberia shareholders are to get 45 percent.

The two loss-making airlines hope to fly the merged entity with 408 aircraft and 200 destinations by the end of the year.

(Reporting by Tracy Rucinski and Rhys Jones; Editing by Elisabeth O’Leary)

Filed Under: International News Tagged With: Air France, Airf, Airlines, British Airways, british flag, Elisabeth, flag carrier, iberia, Industrials, kilometres, Lufthansa, memorandum of understanding, Merger Agreement, Merger Deal, peers, reuters, Rhys Jones, rivals, Rucinski, shareholders