Companies reporting next week

OIL giants Shell and BP will give investors more to consider than just fluctuating oil prices next week, with both reporting third quarter figures.

On Thursday, Shell is expected to turn in net income of $4.3bn (£2.35bn) against $2.9bn (£1.6bn) last time.

In a results announcement that analysts say is likely to be a sideshow to the group's reserves crisis and its corporate governance review in November, Shell will say it benefited from well-performing downstream operations and higher oil prices.

However, it is expected to say it has lost output following Hurricane Ivan, maintenance in the North Sea and disposals.

On Tuesday, BP is expected to report third quarterly net income of $4bn (£2.2bn), compared with $2.8bn (£1.5bn) the year before.

Quarterly earnings are tipped to benefit from a 46% improvement in oil prices, although production excluding BP's Russian oil venture TNK-BP is set to be about 4.5% lower than the second quarter due to hurricanes and planned shutdowns.

Chemicals and paint group ICI is expected to report on the impact of higher raw material prices, particularly in its National Starch and paint operations, when it reports third quarter results on Thursday.

ICI is tipped to come up with a large increase in pre-tax profits of £120m against £25m last time. The group has reduced its debt and increased its cash generating capacity, with observers believing it will be cash positive by 2006. Broker Charles Stanley is telling investors to accumulate the stock.

Analysts are also telling investors to build up their holdings in drugs group GlaxoSmithkline, despite an expected 11% fall in third quarterly operating profits on Thursday.

The company, which is expected to turn in figures of £1.55bn against £1.75bn previously, is expected to say the weaker dollar and continued declines in sales of major drugs have hit its performance.

One of the few firms to turn in half-year results next week is pubs and leisure group Whitbread, which on Thursday is expected to post pre-tax profits of £144m against £134m last time.

New chief executive Alan Parker is due to unveil a restructuring plan to improve the operating returns at its UK Marriott four-star hotels.

Whitbread's interim trading statement was mixed and slightly disappointing in that like-for-like sales growth slowed during the second quarter, mainly due to the summer weather and possibly the weakening consumer background.

Poor weather has been blamed by Unilever in successive trading statements for sluggish sales of ice cream and Lipton iced tea, making analysts pessimistic about the chances of a recent sales improvement while rain has continued to fall in Europe.

Unilever is due to reveal its third-quarter sales performance on Wednesday after shocking the market with a profits warning last month.

Margins in the period between July and September are expected to be lower than a year ago, while full-year earnings guidance has been reduced to low single-digits.

Fund manager Gerrard said: 'At least now the market is expecting the worst, so if Unilever can deliver underlying sales growth from its leading brands above 1% this will be taken positively.'

Half-year figures from Boots on Thursday are likely to show a deterioration in margins as the company faces up to pricing pressures and the impact of actions needed to improve sales, including new stores and longer opening hours.

Following a disappointing trading update last month, when sales were hit by the impact of wet weather on seasonal products, analysts will be looking for reassurance about prospects in the run-up to the Christmas period.

And amid changes by new chief executive Richard Baker, including the closure of certain services, the company is expected to post interim profits of between £190m and £210m, compared with £266.4m last time.

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