Thursday April 10, 05:30 PM
Sector movers: Margins under more pressure at DSGI
LONDON (ShareCast) - Electrical retailer DSG International (LSE: DSGI.L - news) has issued its second profit warning of 2008 due to
challenging markets in the UK, Italy and Spain as consumers focus on cut-price deals. Full year underlying profit before tax is now expected to be in the range of £200m to £210m, said the owner of Currys and PC World Thursday. In January, the firm said full-year profit would be some £40-£50m lower than expected at around £250m due to weaker trading and a more cautious outlook for the rest of the year. "Whilst like for like sales patterns are broadly in line with those we reported over the Christmas period, it is clear that customers have become increasingly promotion and deal driven, impacting gross margins," said chief executive John Browett today. DSG reported a 1% drop in like for like sales for 25 weeks to 5 April 2008, with total group sales up 6%. It (Frankfurt: A0MLX5 - news) said overall UK computer sales remain disappointing, despite reasonable demand for laptops and games consoles. The increased promotional environment has resulted in like for like gross margins down around 0.8% for the period, it added. Shares in Enodis (LSE: ENO.L - news) rallied today after the food equipment manufacturer said late Wednesday that it received an indicative cash takeover proposal from The Manitowoc Company, totalling 260p per share. The group said it has granted US-listed Manitowoc (NYSE: MTW - news) due diligence access and will update the market in due course. The proposal is inclusive of the right to receive from the company a payment of 2p per share in lieu of the 2008 interim dividend. "Enodis confirms this announcement has been made with the consent of Manitowoc, however there is no certainty that a formal offer will be made for the company," said the group.
Top performing sectors so far today
Industrial Engineering 3,334.70 +4.60%
Forestry & Paper 4,653.20 +3.23%
Electricity 7,704.00 +1.89%
Pharmaceuticals & Biotechnology 7,062.10 +1.24%
Gas, Water & Multiutilities 4,569.90 +1.10% Bottom performing sectors so far today
Personal Goods 7,008.90 -3.38%
Real Estate 3,466.20 -2.50%
General Retailers 1,521.10 -2.29%
General Financial 7,128.80 -2.11%
Automobiles & Parts 4,600.00 -1.93%
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