London pre-open: Sharp fall expected

22nd Oct 2009 07:37

Footsie is expected to fall sharply in early dealings following a late turn downwards on Wall Street last night.Bus and rail group National Express, which is facing a merger approach from rival Stagecoach, warned that full year pre-tax profits will be 'slightly' below previous expectations. The group said this reflects higher interest costs, following an increase in debt margin from October, together with reduced profitability in North America from additional costs.Platinum miner Lonmin saw a 20% decline in production of the precious metal in the fourth quarter after having to shut down mines for safety reasons and for maintenance. The firm, which operates in South Africa, the source of most of the world's platinum, mined 2.6m tonnes during the quarter. Oilfield services firm Petrofac said it is increasingly confident that the group will deliver earnings growth for the full year of at least 20%. The group said it has continued to win business during the period with contracts secured in both its Engineering & Construction and Offshore Engineering & Operations segments and bidding activity continues at good levels.Telecom operator Colt Telecom reported a 3.7% increase in quarterly EBITDA as revenue fell 4.9%. For the quarter ended 30 September 2009 EBITDA rose to €79.5m from €76.7m the same time a year before as demand improved in Data and Managed Services and as the group tightened costs.