Green light for big switch-off
Energy regulator Ofgem backed the decision by some generators to switch off power stations in the face of sliding electricity prices and says it is not questioning their motives.
In recent years the regulator argued some generators were mothballing units to raise prices. Sonia Brown, head of electricity trading at Ofgem, told an industry conference yesterday: "The difference between now and before is the price. If the price signals are telling people to withdraw plant from the system then this is what they should do."
ABB to weed out assets
The chairman of ABB, Jürgen Dormann, said the engineering group could announce asset sales within six months, sending its sagging shares higher yesterday.
ABB has suffered from weak economic conditions, exposure to asbestos-related lawsuits, and uproar over "overpaid" benefits to former chief executives Percy Barnevik and Göran Lindahl. Analysts expect the group to sell chunks of its financial services division and dispose of the oil, gas and petrochemicals division to cut debts.
Laird Group sees pickup
Electronics firm Laird Group reported a 40% drop in annual profits and cut its dividend, but defied the market's worst fears and pointed to signs of a pickup in demand. Pretax profits from continuing operations fell to £25.2m in 2001, hit by a downturn in the electronics industry and exposure to the slowing US economy. Analysts had expected pretax profits of about £23.3m.
The firm has cut 100 jobs since the start of 2002 at a unit of Laird Services in Scotland.
The board recommended a final dividend of 5.4p per share bringing the annual dividend to 11.1p against 16.5p a year ago.
Computer confidence
Computacenter saw profits drop last year as investment banks and telecom firms held off buying more computer equipment, but predicted that results should be better in 2002.
"In the services business we are pretty confident about 20% growth this year but I cannot call what is going to happen to the products business," said the chief executive, Mike Norris. The firm made about 15% of last year's £2bn sales from its services business, which installs IT systems. Profits in 2001 dropped 8% to £51m, in line with forecasts.
VNU predicts big earnings fall
VNU, the Dutch market research and publishing firm, has warned that earnings for the six months to July will fall by double digits.
A decline in advertising spend last year hit many VNU titles and has led to a 3% decline in earnings. Recruitment advertising, particularly in Britain and the Netherlands, was being particularly badly hit.
