London open: FTSE 100 lower after mixed updates

10th Feb 2011 08:29

Shares are moving in both directions after updates, but the FTSE 100 is lower overall.Price rises and improved volumes in North America and continuing growth in emerging markets helped drinks giant Diageo lift revenues in the six months to December 31, but weakness in Europe resulted in profits missing expectations. The shares are lower. The maker of Guinness and a host of spirits including Smirnoff vodka and Johnnie Walker whisky, saw pre-tax profits during the period rise to £1.61bn from £1.39bn over the same period the previous year. Earnings per share totalled 48.2p, against expectations that they would be slightly above 50p. Sales rose to £7.13bn from £6.92bn. David Illingworth, chief executive officer of Smith & Nephew, whose shares are higher today, said the company put in a strong finish to a year that was his last full term as boss of the artificial joint specialist. He'll relinquish the role at the AGM on 14 April, to be replaced by Olivier Bohuon, previously CEO of Pierre Fabre and executive vice-president at Abbott Laboratories. S&N saw revenue in the final quarter of 2010 remain more or less unchanged from a year earlier at $1,066m. That brought full year revenue up to $3,962m, up 4% from $3,772m.Engine maker Rolls-Royce made slightly more money than expected in 2010 and predicts good profit growth this year despite government spending squeezing customers in the defence business. Underlying profit before tax rose 4% to £955m for the 12 months on underlying revenue up 7% to £10.9m. Improved revenue mix from services, good cost control, a positive currency impact and broadly similar unit costs in the gas turbine activities were behind the record numbers.Oil firm Tullow Oil has discovered oil and gas in its Teak-1 exploration well in the West Cape Three Points licence offshore Ghana. The well contains around 73 metres of net hydrocarbons in two Campanian and three Turonian-aged reservoirs. Angus McCoss, exploration director at Tullow, called it an "excellent" outcome and a "great start to our 2011 multi-well exploration campaign in the West Cape Three Points licence".Wealth management and stockbroking firm Hargreaves Lansdown is going well after reporting it had a record breaking second half to 2010. "We have achieved record revenue, profits and total assets under administration (AUA). This has been achieved with a backdrop of continuing economic uncertainties both at home and abroad. Stock markets have risen and net business inflows have virtually matched last year's record amounts, resulting in a significant increase in our AUA of £4.8 billion in just 6 months," said company chief executive Ian Gorham. Profits fell sharply at Catlin in the year to 31 December as natural disasters such as the earthquakes in Chile and New Zealand forced the property insurer to pay out for claims. Pre-tax profits fell to $406m (£252m) from $603m the previous year. Catastrophe losses amounted to more than $200m, compared to no such losses in 2009. Catlin also experienced a drop in total investment return due to the low interest rate environment, as predicted.