Rain and football add to profits woes

Article Abstract:

A number of United Kingdom companies have issued profit warnings which tend to be attributed to the Asian economic crisis, and the strength of pound sterling. Rain in April 1998 and cold weather in Jun 1998 have also been cited as reasons for profit falls, as has the World Cup soccer tournament. Companies issuing warnings include Coats Viyella and Devro. Stock prices tend to be more affected by currency movements and interest rate rises than earnings data, so it is difficult to assess the impact of these warnings on stock prices.

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Profit collapse is a portent urging caution

Article Abstract:

Profits appear to be collapsing in the United Kingdom, with downgrades affecting small and medium firms. Productivity appears to have collapsed and manufacturing industry is seeing a drop in exports, while the Bank of England is focusing on the service sector. The government is not likely to propose an initiative to tackle the danger of recession. US corporate profits are more important for global markets, and many companies have issued profit warnings. These warnings may not have had enough effect to avoid more sell-offs.

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Footsie's profit warning woes

Article Abstract:

British stocks in the FTSE 100 index could be affected by profit warnings, especially if margins are affected despite global economic growth.

Analysis, Portfolio management

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