Thursday preview: BT, Aveva

11th Nov 2009 17:45

Telecoms giant BT is expected to take a leaf our of the book of sector peer Vodafone and lift its cost savings target when it issues interim results on Thursday.BT chief executive Ian Livingston has pledged to deliver reductions in operating costs and capital expenditure of well over £1bn this year, a figure which analysts believe could be bumped as high as £1.4bn. The group has been fire fighting problems at its Global Services division for a year or so but shareholders are hopeful that the problems are now under control, as the division, which serves corporate clients, extricates itself from loss-making contractual agreements.The pension deficit will still be a concern, however, with the market expecting this to rise to around £9bn.Second quarter revenue is expected to be in the region of £5.13bn, little changed from the £5.2bn seen in the preceding quarter and a tad lower than the £5.3bn seen a year earlier. Underlying pre-tax profit is expected to dive to £312m from £532m a year earlier. Engineering project designer Aveva is expected by broker Panmure Gordon to report interim profit before tax of £27.2m on revenue of £68.4m, with profitability flattered by a £4m gain on exchange rate fluctuations.'Trading commentary is likely to be positive and on the day the opportunity in nuclear in China is likely to be highlighted,' the broker reckons.INTERIMS3i Group, Aveva, BT, Dairy Crest, Highams Systems Services, HSBC Infrastructure Company, Norcros, Securities Trust of Scotland, Synergy Health, INTERIM DIVIDEND PAYMENT DATEAll Leisure Group, Ashley (Laura) Holding, British American Inv Trust, Edge Performance VCT, Kingfisher, MelroseQUARTERLY PAYMENT DATEMerchants TrustFINALSEuromoney Institutional InvestorINTERNATIONAL ECONOMIC ANNOUNCEMENTSCrude Oil Inventories (US) (13:30)Current Account (FRA) (07:45)Industrial Production (EU) (10:00)Initial Jobless Claims (US) (13:30)MBA Mortgage Applications (US) (12:00)Treasury Budget Statement (US) (19:00)AGMSDunelm Group, Eleco, Genus, Hays, Henderson EuroTrust, Henderson EuroTrust, International Ferro Metals, Nighthawk Energy, Thorpe (F.W.)