Shell sees profits jump

Shell told shareholders on Thursday morning that net profits in the second quarter climbed to $4.39bn from $3.82bn a year earlier. The company also squeezed out $3.5bn of cost cuts, which beat its own target by 15pc and saw 7,000 jobs go.

Despite the risig price of oil over the past three months, Chief executive Peter Voser struck a cautious note about the outlook. There are still mixed signals coming from the global economy, Mr Voser said, adding that “oil prices have remained firm so far this year, but refining margins, oil products demand and natural gas spot prices all remain under pressure.”

Shell’s profits come as archrival BP tries to rebuild its reputation in the US following the spill in the Gulf of Mexico. The oil company has said little publicly about the impact of the spill on the oil industry, but will see its own plans in Alaska and the Gulf of Mexico halted - at least for now - by America’s ban on deepwater drilling.
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Reckitt Benckiser sees profits jump

The company, which is headquartered in Slough, reported pre-tax profits for the second quarter of £507m compared with £414m for the same three months in 2009. For the first half of the year, pre-tax profits hit £964m, up from £819m.The company stuck to its full year targets of a 5pc rise in underlying sales and a 10pc increase in operating profit. The dividend for the half-year rose 16pc to 50p.Bart Becht, chief executive, said that the first half of the year has benefitted from “excellent growth in developing markets.”Reckitt has also held on to its customers during the downturn by spending consistently on advertising. It has stuck to a strategy of simple TV commercials which state what the product does and why it is better than its rivals, such as a Cillit Bang commercial which gained a cult following, showing a penny being cleaned to a high shine.While Reckitt is much smaller by revenue than the consumer goods companies it is most often compared with – Unilever and Procter & Gamble of the US, its margins are the highest of the three, at 24.4pc. That compares with P&G’s 20.4pc and Unilever’s 14.8pc.Five Filters featured article: “Peace Envoy” Blair Gets an Easy Ride in the Independent. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.

If the UK is to compete with China and India, we have to pick winners

If you are a big consumer of Chinese goods this means you are about to
re-import the inflation you thought you’d exported over the past 10-15
years. Our interest rate-setting Monetary Policy Committee (MPC) could do
worse than to interview Geoghegan before its next meeting. Structural
changes such as this, beyond the control of an open economy like ours, are
bound to feed into our own domestic inflation figures.

Of course some production destined for Western export is likely to move from
China to surrounding economies with even lower costs, such as Vietnam, once
companies start to feel any threat to margins. So the impact of rising
Chinese costs could be mitigated up to a point.

But since May China seems to be accelerating the pace at which it gives up
some of its competitive advantage in return for moving its economy, and
society, to a wealthier, consumption-based country. Geoghegan described how
Asian consumers will spend $150bn (£99bn) more on retail products this year
compared with Europe, where we will spend $100bn less.

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Primark powers on but parent AB Foods urges caution

“Shoppers in their twenties and thirties are shopping in a completely
different way to a generation ago,” he said.

However, Mr Bason warned that the austerity measures announced by the
Coalition Government in last month’s emergency Budget could hit consumer
confidence.

“You have got to be cautious about the consumer outlook. The thing that
Primark has going for it is that it has good volume growth. But we must be
cautious. Are we well placed? We are as well placed as we can be,” he
said.

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Bellway confident despite buyers¿ worries over tax hikes

By
Daily Mail Reporter
Last updated at 3:31 PM on 15th June 2010

British housebuilder Bellway has issued an upbeat note for the nervous UK housing sector, saying that it will beat its target of matching last year’s sales. The Newcastle-based group said uncertainty over the coalition’s fiscal policy and fears over looming tax hikes have deterred potential homebuyers, prompting a ‘slight reduction’ in site visitor levels and weekly sales since May’s general election. But despite the drop in business levels, Bellway said it expects 200 more sales in the year to July 31 compared to the previous 12 months, adding that it has also secured 1,800 reservations for the next financial year.

Buoyant: Bellway expects to beat its goal of matching 2009’s house sales by 200 new deals

In the 18 weeks since February 1, the housebuilder maintained a
sales rate broadly in line with last year at around 100 sales a week. 

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Benefits of perpetual revolution

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In an uncertain world it is difficult to argue with a company that produces
first-quarter revenues up 20 per cent, latest monthly sales up 30 per cent,
profits ahead by 70 per cent and shares up 40 per cent in the year so far.

And Harriet Green, the chief executive of Premier Farnell, might suggest you
need not bother. Having been at the company a little over four years, she
has just laid down her plans for the next 1,000 days of growth. “Perpetual
revolution” is her phrase.

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Benefits of perpetual revolution

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In an uncertain world it is difficult to argue with a company that produces
first-quarter revenues up 20 per cent, latest monthly sales up 30 per cent,
profits ahead by 70 per cent and shares up 40 per cent in the year so far.

And Harriet Green, the chief executive of Premier Farnell, might suggest you
need not bother. Having been at the company a little over four years, she
has just laid down her plans for the next 1,000 days of growth. “Perpetual
revolution” is her phrase.

Read more

Boeing flies back to top of the perch

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American companies were also more profitable, with margins of 9.3pc compared
with 4.6pc in Europe.

Deloitte attributed the profitability gap in Europe to stricter employment
laws and government involvement in the sector making it harder to cut jobs
during the downturn.

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Rose marks M&S swansong with profit rise

Marks & Spencer today reported full-year operating profit growth of 4.6 per
cent, meeting analysts’ expectations in its last year under the leadership
of Sir Stuart Rose.

Sir Stuart, who has handed his chief executive role to Marc Bolland and who
will leave his post as chairman once a replacement has been found, said that
the store had improved its performance, “demonstrating the resilience of the
M&S brand”.

“With the worst effects of the recession behind us, strong foundations in
place, and our core values intact, I am confident that M&S is well set for
growth under Marc’s direction,” he said.

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Strategic planning is the key to Dewhirst’s overseas drive

While dependent on the retailer for more than 90pc of its £225m sales,
Dewhirst planned ahead and shifted production from the UK to new plants in
Indonesia and Morocco at the end of the 1990s to protect its margins.

The company is investing in Bangladesh this year. “If you look short term
you would not do anything. One has to take a view of the future and where
manufacturing will exist in the future. At times you see a lot of things
that you don’t want to see,” said Mr Witt.

He cites Anthony Habgood, the former chief executive of Bunzl and Tootal Group (CORRECT),
as a key mentor. “I learned from him that it is about getting down to
the detail; that it was best leave other people to manage, to delegate and
be transparent. And the key importance of strategic thinking. ”

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