Guinness feels the chilly draught of fall at LVMH

GUINNESS yesterday felt the backlash of a decline in autumn sales at LVMH, the company's French trading associate.

Shares in the UK drinks company fell 16p to 533p, and LVMH, which makes up nearly 6 per cent of the Paris bourse's key CAC-40 index, fell Fr231 ( pounds 28) to Fr3,570.

LVMH's trading statement was a prime factor in depressing the CAC-40 by 24.62 points to 1,749.86. Some 40,000 shares changed hands, making LVMH the bourse's most active stock.

The company, best known for Moet Champagne, Hennessy Cognac, and Christian Dior and Givenchy perfumes, warned that 1992 profits were unlikely to beat last year's Fr3.74bn.

A spokesman added: 'No pick- up in the Japanese or European economies can be counted on until late 1993 and the average values of the company's key currencies - the yen and dollar - are likely to be lower next year.'

The third-quarter slow-down left LVMH, which has a 24 per cent cross-holding in Guinness, with a minimal 0.3 per cent rise in nine-month sales to Fr14.7bn.

Baggage and leather goods sales fell 0.6 per cent over that period to Fr3.4bn, but were down 15.5 per cent in the third quarter. About 70 per cent of its baggage and leather goods sales are in Asia and the Pacific regions.

Nine-month wine and spirits sales dropped to Fr6.903bn, from Fr7.453bn, but perfume and beauty products sales rose from Fr3.36bn to Fr3.86b.