Updates from Ryanair, HSBC and Hikma Pharma
The FTSE 100 turned south again on Friday, slipping 34 points to 6,361. IAG and Barclays shares - Barclays' share price is currently at its lowest point since the start of the year - were the chief drifters, down 2.5% and 2.2% respectively (to 582.50p and 232p). RandgoldResources also fell 1.8%. However TaylorWimpey and Meggitt took 2.1% and 1.8% climbs.
Over in the US there was similar lacklustre sentiment with the Dow down by 92 points to 17,663.5. Healthcare stocks fared particularly badly with Pfizer falling 2.7% and UnitedhealthGroup down 1.6%.
We start with a bullish Ryanair and profits up 37% for the first half of the year to €1,088m. Traffic grew 13% to 58m with Ryanair's load factor rising 4% points to 93%. Average fares rose 2% as unit costs fell 6% (though Ryanair is still paying $90 a barrel for oil, expected to slip to the $65 region by spring).
The Irish airline has hiked its full year traffic target from 104m to 105m customers with Q3 traffic set to grow 17% and Q4 by 22%. It expects Q3 average fares to be broadly flat. Full year net profit should be towards the upper end of the €1,175m-$1,225m range.
"We have enjoyed," says the airline, "a bumper summer due to a very rare confluence of favourable events including stronger sterling, adverse weather in northern Europe, reasonably flat industry capacity and further savings on our unhedged fuel."
Next, a 32% jump in HSBC profits for the third quarter. Profits have come in at $6.1bn compared to $4.6bn for the same period a year ago. Predicted forecasts had been in the $5.2bn region in comparison for the third quarter.
However though profits were substantially up HSBC revenues took a dent, down 4% to $14bn overall thanks largely to the Asian confidence downturn, striking its wealth management arm. HSBC shares also remain almost 20% down in the last year.
"Our cost-reduction measures are beginning to have an impact on our cost base," says HSBC. "There is more to achieve on costs and we expect the measures we have already taken to have a further impact in the fourth quarter."
Finally, Hikma Pharma. It claims it has been performing strongly across most of its businesses in the year to date, particularly in the Injectables business. Trading in its Generics business is currently below expectations it says.
Following a strong performance in 2014, Hikma claims its positive for its revenue outlook for 2015 and beyond. The branded business is performing well across most markets Hikma claims.
"Due to a favourable product mix and good cost control, we expect to achieve a strong adjusted operating margin in the second half of the year."
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