Unilever shares continue to slide
Friday 30 April 1999
Sales in the first three months of 1999 were down by 1 per cent because of difficult economic conditions in European and Latin American markets while pre-tax profits fell by 4 per cent to pounds 666m.
The shares fell 5 per cent to 559.5p, continuing their downward run. Since Unilever announced in February that it was returning pounds 5bn to shareholders through a special dividend the shares have lost 10 per cent of their value.
Despite the setbacks in central and eastern Europe and Latin America - due respectively to the Russian economic collapse and disappointing icecream sales in Brazil - Unilever said that South-east Asia was beginning to show signs of recovery. Sales in Asia and the Pacific were up 5 per cent, driven by strong performances in India and China.
Analysts were surprised by a fall in sales in North America - Unilever's second biggest market after Europe. The company blamed the 3 per cent decline in sales on lower food sales and a mixed performance in home and personal care products.
Unilever said the dip in sales needed to be seen in the context of a very strong first quarter in 1998 and that it expected to re-establish sales growth in the remainder of the year.
Analysts gave Unilever the benefit of the doubt, saying there was no need to change full-year forecasts at this stage. Rabobank is forecasting 1999 profits of pounds 2.9bn on sales of pounds 28bn, putting the shares on a multiple of 21.5 times prospective earnings.
- 1 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 2 Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
- 3 Giorgio Armani criticises the way some gay men dress saying 'a man has to be a man'
- 4 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...