Justin Doyle, Investec Bank Ireland, said today:
- "As exit polls suggested, Bersani's PD party and coalition grouping look
to have won by a thin margin in the lower house, with the Italian political
system operating 'winners majority' take control. However, Berlusconi is
still disputing this;
- But the results in the Senate suggest that no party or coalition will
have enough seats for control there. So whilst Bersani's centre left has
said it will try to form a government, it remains unclear what options it
has to do this. It cannot garner enough seats in the Senate even with
Monti's Civic Choice;
- Note that the Senate results give the centre-left coalition 113 Senate
seats, Berlusconi’s coalition 116 seats, Grillo’s 5-star movement 54 seats
and Mario Monti 18 seats. All are well short of the 158 seats to form a
- Hence it does now look as if Italy could be headed back to the polls
again in a re-run, with a period of instability and uncertainty ahead and
little scope for continued reform in the interim;
- Clearly this is negative for risk assets. The Euro has struggled
overnight on the news and Italian government bond yields are likely to climb
on the back of this (with an Italian bill auction due this morning)."
CRH reports sales rise in 2012 and profit dip; Myles
Lee to retire
Kerry, the food group, today reported its sales revenue rose by 10.3%
to €5.8bn for the year ending December 2012.
It said its trading profit increased by 10.8% to €555m, but profits after tax
fell by 26% to €267m from €360.7m.
Liam Igoe of Goodbody said: Kerry Group Results ahead, but FY13 trimmed
- - "Kerry Group’s adjusted EPS (fully diluted) increased by 11.3%, 1% above our
10.5% forecast. Ingredients was the main driver of growth (+3.4% lfl), with
Kerry Foods (-1.5% lfl) impacted by the weak consumer backdrop.
Operating margins edged up, as expected, due to the benefits of plant
rationalisation and operational gearing from improving volumes. The 1Kerry
project has been addressing all the back office functions (finance, purchasing)
while also rationalising the number of Kerry plants globally (150 facilities in
25 countries). Kerry Ingredients margins increased 10bps, while Kerry Foods
margin fell 20bps and profits were behind forecasts reflecting the difficult
Underlying net debt was lower than forecast when adjusted for the acquisition
spend of €177m. The Pensions directive IAS 19 will be incorporated into
forecasts from FY13 (and retrospectively), with a net impact in EPS terms of
Overall the results were slightly better than expected, with continued
positive trends within the larger (78% of EBIT) Ingredients division. The
company is guiding 7-11% EPS growth in the current year. Assuming a mid-range
guide, this would imply a base EPS of 259c (Goodbody current forecast 259.9c),
from which 3.6c needs to be deducted for IAS 19, implying 255c for FY13. The
results statement does not change our overall stance on the stock which we rate
DCC, the business services group,
today said it wants to seek admission to the London UK Index Series,
following a review of its listing arrangements.
The company said this will require cancelling of its shares on the Irish
DCC's shares, currently traded on both the ISEQ and the London Stock
Exchange, but it will end its Irish listing in May and then trade only in
sterling in London.
DCC also said that it will change its reporting currency from euro to
sterling to reflect the fact that most of its group revenue and operating
profits are now generated in the UK in sterling.