KERRY RESULTS BEAT EXPECTATIONS - Food group Kerry this morning has said that its sales beat expectations last year to reach €5 billion - an increase of almost 10%. It reported pre-tax profits of €392.8m for the year ending December 2010, up from €251.9m in 2009. Its earnings per share were 16.8% higher than in 2009 at 194.5 cent. Kerry is one of the world's biggest food ingredients and flavouring manufacturers, and it is behind household name brands like Denny, Dairygold, Shaws, Michelstown and Dawn and many supermarket private labels.
The group's chief executive Stan McCarthy says that Kerry's reach in the ingredients and flavours business is global, while its consumer foods division is mainly concentrated in Ireland and the UK. He says a period of large restructuring had helped its strong growth last year, combined with its alliances around the world. Mr McCarthy said that Kerry is not immune to higher food prices seen around the world, but he says that the company watches them closely and carefully every day. He points out that commodity prices are cyclic and that Kerry has to manage its way through the troughs and peaks.
The Kerry boss says that the company had seen some signs of stabilisation towards the end of last year in the Irish market and predicts a 'fragile' recovery in 2011. He says the company has had to adapt to what cost conscious consumers are looking for - competitiveness and value for money.
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MORNING BRIEFS - Oil production in Libya is set to drop dramatically as international oil companies and sub-contractors help their staff to leave the country, with many effectively shutting down production. Many of the foreign oil companies in the south of the country have their own air strips. Crude oil prices shot higher yesterday, to a two and a half year high at $105.50 a barrel in the US while Brent hit $108.70. Libya is responsible for 1.5% of global oil production. It is the 12th biggest oil exporter and is a critical supplier to the European market. All the big names are there - Italy's ENI is the biggest foreign oil company in Libya, with Gazprom, Petrobas, Statoil, Royal Dutch Shell, Repsol, OMV and more producing, while BP explores there.
*** On the currency markets the euro is trading at $1.3580 cents and 84 pence sterling.
