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Samsung profits plunge 78% amid weak demand for gadgets
Samsung profits plunged as much as 78% amid soft demand for its chips and gadgets.
Spot prices of D-Ram chips, which are used in its PCs and servers, have fallen close to 30% so far this year.
Shares rose 4.4% as investors had predicted an even sharper profits drop.
Travis Perkins issues second profit warning in three months as house building slowdown persists
The UK’s biggest building products chain, Travis Perkins, issued another profit warning this morning, after the slowdown in the housing market outlasted the summer.
The 700-branch company cut its outlook for annual adjusted operating profit to a range between £175 million and £195 million, down from £240 million, a forecast issued in July, that was itself lower than one of £272 issued in April.
It said “challenging market conditions with the pronounced slowdown in new build housing and domestic RMI [repairs, maintenance and improvement] activity” persisted into the third quarter.
September “saw a notable deterioration in market activity and sentiment”, it added,
Falling prices for some building products also took a toll.
Nick Roberts, Chief Executive, said: “Market conditions remain challenging with continued weakness across new build housing and domestic RMI. Deflation on commodity products has also been greater than we had anticipated. “
Ashley’s Frasers takes stake in Norwegian retailer XXL
A spending spree at Mike Ashley’s Frasers Group shows no signs of abating as the firm today confirmed it had acquired a stake Norwegian retailer XXL.
The firm has bought 117m shares and now owns a 9.75%.
Yesterday it confirmed it had upped its stake in Asos to 10.65%.
Sales slip at Sanderson Design Group but profits improve
Upmarket wallpaper company Sanderson Design Group today said the UK market has been challenging as it posted a first half dip in revenue.
However, the luxury interior design and furnishings group said there was strong growth in North America and total group revenue for the six months to July 31 declined 2.1% to £56.7 million.
Pre-tax profit improved to £6.2 million from £5.5 million and full year trading remains in line with board expectations.
Dianne Thompson, Sanderson Design Group’s chairman, said: “We are focused on growth opportunities in the US, where we are currently under indexed, on driving licensing income internationally and on mitigating the softness in the UK market through cost saving measures. Our licensing activities had an outstanding first half and continue to drive the group’s profit growth in the current year.”
Asia markets higher, FTSE 100 steady after big rise
The FTSE 100 index is set for a session of consolidation after yesterday’s jump of 1.8% or 136 points to 7628.1, the top flight’s highest level since the end of September.
The boost was fuelled by the prospect of a China stimulus plan as well as a slight change in tone from Federal Reserve policymakers on the next move for interest rates.
The US rates outlook will remain in focus as the minutes of the Fed’s September meeting are due to be published later, with US inflation figures due tomorrow.
The Dow Jones Industrial Average closed 0.4% higher and the Nasdaq Composite lifted 0.6% by last night’s close, while the China stimulus hopes have contributed to a 1.5% rise for Hong Kong’s Hang Seng index.
CMC Markets expects the FTSE 100 index to open nine points lower at 7619 this morning.
The price of Brent crude, meanwhile, has held firm at $87.64 a barrel after surging earlier in the week on fears of supply disruptions in the Middle East.
Recap: Yesterday’s top stories
Good morning. Here’s a summary of our top headlines from yesterday:
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