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Boeing signs record $22.4 bln order with Lion Air

Tue, 14 Feb 2012 08:18:49 GMT

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Aero engine maker Rolls-Royce profit jumps 57%

Thu, 09 Feb 2012 10:19:22 GMT

Rolls-Royce, the British maker of aircraft engines, said Thursday that net profit jumped 57 percent to £850 million ($1.35 billion, 1.01 billion euros) last year, boosted by a record order book.

The 2011 earnings figure compared with profit after tax of £539 million in 2010, Rolls said in a results statement.

The London-listed firm added that its order book swelled by five percent to a record £62.2 billion.

"Rolls-Royce performed well in 2011, and at the year-end had a record order book, record underlying revenue and record underlying profit," said chief executive John Rishton in the earnings release.

"We continue to benefit from a broad portfolio, a large and growing customer base and access to markets where demand remains strong for our products and services.

"Our order book gives us good visibility of future revenues and demonstrates the confidence our customers have in us."

In 2010, Rolls-Royce had taken a hit of £56 million due to safety issues with the Trent 900 engine used to power the Airbus A380 superjumbo

British energy group BG profits leap 26%

Thu, 09 Feb 2012 10:17:22 GMT

British energy producer BG Group said on Thursday that net profits surged by 26 percent in 2011, bolstered by higher global energy prices and strong demand for liquefied natural gas in Asia.

Earnings after taxation rallied to $4.234 billion (3.184 billion euros) last year, compared with $3.351 billion in 2010, BG Group said in a results statement. Revenues jumped by 22 percent to $21.1 billion.

BG Group said that the bumper earnings reflected "the benefit of higher realised prices and an increase in the number of Liquefied Natural Gas (LNG) cargoes sold to markets outside of the USA, particularly Asia."

However, total production edged one percent lower to 234.1 million barrels of oil equivalent per day, hit by a series of outages and third-party infrastructure restrictions in the North Sea.

"In a changing and challenging operational, economic and political environment, I believe these are a good set of results for 2011, which also saw significant progress towards delivering our key growth projects," said chief executive Frank Chapman in the statement.

Investors welcomed the results, sending BG Group shares 3.28 percent higher to 1,493.5 pence in morning deals on the FTSE 100 index, which showed a gain of 0.36 percent.

The company also outlined its growth strategy to ramp up its production of gas and liquefied natural gas.

Industrial output rebounds, dampens recession fears

Thu, 09 Feb 2012 10:15:50 GMT

LONDON (Reuters) - British industrial output recovered more than forecast in December as manufacturers ramped up production, further dampening fears of recession.

The rebound from the slump in the previous two months also supports views that the Bank of England will inject only 50 billion pounds into the economy rather than the 75 billion pounds of stimulus it opted for in October.

Industrial production - which accounts for around 15 percent of the British economy - grew 0.5 percent on the month, the Office for National Statistics said, against forecasts for a 0.2 percent rise.

The narrower reading of manufacturing output, which excludes utilities and oil and gas extraction, rose by 1.0 percent on the month in December versus forecasts for a 0.2 percent rise. On the year, manufacturing output was 0.8 percent higher.

However, the figures showed a 1.4 percent drop in overall industrial production in the fourth quarter, a slightly bigger decline than originally assumed for the GDP growth figures.

The ONS said this would only have a minor downward impact on fourth-quarter growth number, which showed a 0.2 percent decline in GDP.

The Bank of England is widely expected to announce a 50 billion-pound expansion of their quantitative easing programme, after earlier expectations of as much as 75 billion pounds in fresh stimulus have largely subsided in the wake of more upbeat economic news.

A strong run of closely watched business surveys last week has fuelled hopes that Britain will dodge recession early this year after contracting in the last quarter of 2011.

The manufacturing Purchasing Managers' Index (PMI) showed that the sector gained momentum in January as orders rose for the first time in six months.

In a separate release, the ONS said that Britain's goods trade deficit narrowed in December to 7.1 billion pounds - the smallest gap since February 2010 - from 8.9 billion pounds in November. Economists had forecast a gap of 8.6 billion pounds.

The overall trade deficit including services narrowed to just 1.1 billion pounds, the lowest since April 2003.

BP Bounces Back As Profits Soar To £15.1bn

Tue, 07 Feb 2012 08:54:06 GMT

BP has recorded total profits of £15.1bn ($23.9bn) for 2011 as the oil firm looks to be turning itself around following the Gulf of Mexico oil spill.

The London-based firm suffered a loss of £3.1bn ($4.9bn) in 2010 when an explosion on the BP-leased Deepwater Horizon rig killed 11 workers, caused millions of barrels of oil to spew into the sea and left the company with huge compensation costs.

BP's profits for the fourth quarter of last year rose to £4.8bn, helped by higher oil prices. It was far more than the £3bn forecasted and a 65% increase on a year earlier.

The fourth quarter profits exceeded those of rival oil giant Shell, which made £4.1bn over the same period. But Shell's full year profits were up to £18.1bn.

The turnaround in profits comes as BP prepares for legal action over the oil spill to begin on February 27.

BP chief executive Bob Dudley said:"BP is on the right path.

"2012 will be a year of increasing investment and milestones as we build on the foundations laid last year."

The company said that it had committed £632m ($1bn) "for the early restoration of natural resources following the Deepwater Horizon accident in 2010."

It added that by the end of 2011 it had paid more than £4.9bn ($7.8bn) to meet claims and government payments, while £9.5bn ($15.1bn) had been paid into the trust fund used to compensate victims of the oil spill disaster.

Oil Firm Shell's Profits Double To £18bn

Thu, 02 Feb 2012 13:21:19 GMT

Royal Dutch Shell has reported a profits of £18.1bn ($28.6bn) for 2011, a jump of 54% on a year ago.

The improvement for the Anglo-Dutch company came as high oil prices outweighed poor margins in its refining business and despite a 3% decline in production.

Its performance in the final quarter of last year was also worse than expected, with trading impacted by a squeeze on refining margins and lower natural gas prices.

But the oil firm still made profits of £4.1bn ($6.5bn) in the fourth quarter, which represented a 13% rise on a year ago.

Royal Dutch Shell chief executive officer Peter Voser said: "Our fourth quarter results were impacted by a sharp downturn in industry refining margins and North American natural gas prices.

"The global economy and energy markets are likely to see continued high volatility. Despite the near-term uncertainties, Shell 's focus remains on through-cycle investment for sustainable growth."

Shell has outshone its troubled rival BP in recent years and underlined its confidence by promising dividend growth for the first time since 2009.

It said its three-year strategic plan, beginning in 2010, had built the foundations for growth through a company-wide restructuring and by refocusing its efforts on emerging growth markets.

The company is planning investment in major projects worth £19bn in 2012 and said its outlook was boosted by more than 60 new projects and options.

There will also be £3.8bn of investment in Shell's 'heartlands' during this year, including extending the life of its UK operations in the North Sea.

Mr Voser added: "Shell's strategy is innovative and competitive. Our improving financial position creates an opportunity to increase both our dividends and investment levels."

His comments came a month after Shell angered unions when it scrapped its final salary pension scheme for new recruits, meaning not a single employer in the FTSE 100 Index now offers the retirement package.

Construction firms more upbeat despite slower growth

Thu, 02 Feb 2012 13:18:16 GMT

(Reuters) - Britain's construction companies have grown more optimistic about their business prospects for this year despite a slower expansion in activity in January, a survey showed on Thursday, adding to hopes that the economy may avoid recession.

The headline Markit/CIPS construction Purchasing Managers'Index fell to 51.4 from 53.2 in December as growth in new orders slowed and some existing contracts were completed.

That was below analysts' forecasts for a drop to 52.6 and the weakest rate of expansion in four months.

However, the component measuring firms' confidence about business over the next year rose to an eight-month high, helped by what they said were improving economic conditions.

"This suggests that growth may pick up again in the sector in coming months and, on top of the surprisingly strong start to 2012 reported by the sister survey of manufacturing, will raise hopes that a slide back into recession may yet be avoided," said Sarah Bingham, economist at data compiler Markit.

The PMI survey of manufacturing on Wednesday showed that the sector unexpectedly returned to growth last month.

Britain's economy contracted in the final quarter of 2011,as manufacturers and construction companies scaled back production. If followed by another consecutive quarter of contraction, that would amount to a recession.

Growth in the construction sector, which accounts for some 8 percent of the total economy, was driven by commercial building in January, with activity in house building and civil engineering shrinking slightly, Bingham said.

The resulting overall increase in output was not enough to sustain job creation, and employment in the construction sector stagnated, she added.

Input costs rose markedly in January on the back of higher raw material and energy prices, although the rate of inflation eased.

Oil prices lower over eurozone debt worries

Wed, 01 Feb 2012 09:53:13 GMT

Oil prices fell on Monday with the demand outlook uncertain as the market awaited the outcome of a European Union summit on containing the eurozone debt crisis, analysts said.

New York 's main contract, West Texas Intermediate crude for delivery in March, shed 51 cents to $99.05 a barrel.

Brent North Sea crude for March dropped 31 cents to $111.15 in London deals approaching midday.

"The main factor affecting oil prices right now has to be the debt situation in Europe and the outcome of today's summit in Brussels," said Victor Shum, an analyst for Purvin and Gertz energy consultants in Singapore.

EU leaders are to meet to finalise details on a fiscal pact to reign in budget deficits and to endorse a permanent bailout fund with a lending capacity of 500 billion euros ($650 billion).

The summit comes as Greece -- the epicentre of the eurozone's debt crisis -- inches towards striking an agreement with private creditors to erase 100 billion euros of its debt and implementing a new recovery plan put forward by the International Monetary Fund and the EU.

The eurozone and the IMF are demanding this commitment, even asking for it in writing as a precondition for a second 130 billion euro rescue package.

Analysts said the situation in the Middle East also continues to be a factor influencing oil prices.

Officials from the UN atomic watchdog, the International Atomic Energy Agency, visited Iran on Sunday to discuss Tehran's suspected nuclear weapons drive.

The visit is regarded as a rare opportunity to alleviate a building international showdown over Iran's nuclear programme marked by a ratcheting up of sanctions and talk of possible Israeli military action.

"The outcome of the IAEA inspection in Iran will also be a major factor affecting oil prices in the coming days," said Shum.

The EU last week imposed fresh sanctions on Iranian oil as part of a concerted effort with the United States to pressure Tehran into halting its controversial nuclear activities, which are suspected to be aimed at developing nuclear weapons.

Tehran insists that its nuclear programme is solely for civilian purposes.

Iran is the second-biggest producer in Organization of Petroleum Exporting Countries (OPEC), behind Saudi Arabia. It pumps some 3.5 million barrels a day, and exports 2.5 million.

Manufacturing rebounds in January, recession risk eases - PMI

Wed, 01 Feb 2012 09:46:42 GMT

(Reuters) - Britain's manufacturing sector unexpectedly returned to growth in January as orders rose for the first time in six months, indicating the UK could skirt recession if the sector continues to recover in coming months.

The Markit/CIPS Manufacturing Purchasing Managers' Index (PMI) rose to 52.1 - the highest level since May - from an upwardly revised 49.7 in December, data compiler Markit said on Wednesday.

That was the first reading above the 50 mark that separates growth from contraction since September and beat analysts' forecasts that the sector would stagnate.

"This surprising rebound in January means a return to recession is by no means a certainty," said Markit economist Rob Dobson.

Output expanded at the fastest pace since March, helped by the first rise in new orders in more than half a year and clearance of backlogs of work.

Firms said some British clients were now more willing to spend, while export orders grew for a second month in a row, with firms reporting better demand from clients in Brazil, China, the Middle East and the United States, Markit said.

The economy shrank in the final quarter of 2011, as manufacturers and construction companies scaled back production. That suggested the UK was heading for recession - defined as two consecutive quarters of contraction - and boosted expectations the Bank of England's Monetary Policy Committee (MPC) would soon give it another cash injection.

However, the rebound in manufacturing in January may put a question mark over the need for additional asset purchases although more months' data is needed to see if recession can actually be avoided.

"The upturn in the PMI may cause some members of the MPC to wonder if further stimulus is still warranted," Markit's Dobson said.

Economists polled by Reuters have forecast the central bank will announce a 50 billion pound expansion to its quantitative easing programme next week.

The PMI showed that manufacturers' input costs fell last month at the fastest pace since mid-2009 and that could still encourage the central bank to announce more asset purchases in order to support economic growth.

Factory-gate prices continued to rise, albeit at the weakest rate in the current 27-month period of inflation, Markit said. Some manufacturers noted that lower raw material costs and the need to lure cash-strapped clients kept price rises in check.

Employment in the sector was broadly unchanged in January. Overall, small and medium-sized firms expanded their workforce to handle increased production, but large companies cut jobs to control costs and in response to economic uncertainty.