Unilever predicts 4% sales growth - US attacks would affect at least two of its businesses - Brief Article - Statistical Data Included

Eurofood, Oct 11, 2001

Anglo-Dutch consumer products company Unilever told investors and analysts that the US attacks would indirectly affect the performance of at least two of its businesses, creating a more cautious short-term trading outlook.

However, Unilever still expects to achieve this year's target of "low double-digit growth" in earnings per share before exceptional items and goodwill amortisation, despite flat earnings this quarter.

Areas particularly affected by the 11 September attack was perfumes and its US food service business, both viewed as already vulnerable due to the US economic slowdown.

Investors continue to assess the company's 14bn [pounds sterling] (22.26bn [European Dollar]) acquisition of US based BestFoods, but are seemingly unperturbed by the additional debt the acquisition has forced the company to take on.

Shares have only fallen 11% this year, whilst the FTSE 100 has lost more than 25%. Following the briefing with investors Unilever's shares fell 21 1/2p to 509 1/2p, but like the shares of most food companies, they are proving to be relatively safe havens for traders.

The company said third-quarter sales growth should be nearly 4% before acquisitions and disposals.

The threat of recession will worry Unilever less than other companies, with most of its goods falling in the `essential' categories. The others, such as Ben & Jerry's ice cream will offer low cost comfort food for those worried by the economy's downturn.