London pre-open: Company updates to lift Footsie

30th Jul 2009 07:51

A strong start is expected from FTSE 100 as the results stream continues.Royal Dutch Shell said its second quarter results were affected by the weak global economy as net profit slumped 70%. Second quarter earnings, on a current cost of supplies (CCS) basis, came in at $2.3bn, which was in line with expectations, against $7.9bn a year earlier. In the six month period, CCS earnings fell 64% to £5.6bn. Broadcaster and broadband provider BSkyB posted a sharp rise in profits in the year to June 30 as householders continued splashing out on home entertainment amid tough economic conditions. The firm posted a profit before tax of £456m, compared with £60m over the previous year as revenues rose to £5.35bn from £4.95bn.Aero engine company Rolls-Royce reiterated its guidance for the full year but said the global trading environment remains 'very difficult', adding that the recovery is likely to be slow. Underlying pre-tax profits, which excludes the non-cash impact of the hedge book and other financial instruments, rose 9% to £445m in the six month ended 30 June.Its fellow aerospace and defence stock BAE Systems has swung to a half-year loss, but upped its dividend and said it expects good growth for the full year. The defence firm made a loss of £70m in the six month ended 30 June compared with a profit of £599m last time.Miner Kazakhmys said given the progress made in reducing stockpiles, output is likely to be lower in the second half but it remains on track to meet our full year target.Knee and hip joint supplier Smith & Nephew posted a rise in second quarter profits but expects its products which serve the younger more active patient segment to face greater challenges.Specialist publisher Reed Elsevier has announced plans to raise about 10% of its capital through a placing to pay off debts after an acquisition. Reed acquired the operator of the Lexis Nexis news archive system ChoicePoint for $4.1bn and had intended to pay for this with the sale of its business information division, but shelved the plans because of the economic environment. It will place just under 110m new ordinary shares.