Grafton Group plc the builders merchants and DIY group with operations in the UK and Ireland, said today in a trading update for the year ended 31st December 2008 that it expects that earnings before exceptional costs for the full year will be towards the lower end of market expectations. Fruit importer Fyffes said today that it is seeking significant increases in selling prices in all key markets.

Grafton said group turnover for the year is expected to be about €2.67 billion after taking into account the conversion effect of the significant sterling weakness experienced in 2008.

Fyffes said it expects to deliver 2008 Adjusted EBIT (earnings before interest and tax)* of €15m, at the upper of the range indicated in its previous trading update on 29 August 2008.  Year end cash balances are expected to amount to €33m.

Looking ahead to 2009, Fyffes says there has been a significant adverse movement in exchange rates in recent months as a result of the strengthening of the US Dollar, particularly relative to Sterling.  The company  expects further cost inflation in 2009 with higher fruit and shipping costs only partly offset by lower fuel costs.  

Fyffes said it is targeting an Adjusted EBIT* for 2009 in the range €14m-€18m, based on an expectation of achieving the necessary increases in average selling prices.

* Adjusted EBIT excludes amortisation charges, the Group's 40% share of the results of Blackrock International Land plc and exceptional items.