Good results expected from F&P and the big brewers

By ELLEN READ

Four companies which are household names will unveil results this week.

The country's two largest brewers - Lion Nathan and DB - will reveal their annual figures, and both Fisher & Paykels - the appliance and healthcare companies - will announce interim figures. Strong numbers are expected all round.

In August, transtasman brewer Lion Nathan said it was on track to deliver double-digit earnings growth during the financial year, which ended in September. Chief executive Gordon Cairns said third-quarter volumes were up 3 per cent in New Zealand and 1 per cent in Australia.

DB investors will be waiting to see if the June price hikes have come through in an increased bottom line. The result is due to be released tomorrow - in the same week that DB opens the $60 million redevelopment of its Waitemata brewery.

Fisher & Paykel Healthcare's numbers are likely to be high, given recent strong results from competitors ResMed and Respironics. Far from eating into F&P's market share, those good profits showed the industry as a whole is growing, said Macquarie Equities' Arthur Lim.

Fisher & Paykel Appliances - which has a 20 per cent stake in its Healthcare sister - will also benefit.

Scheduled events aside, the tone of the market will be dictated by the flurry of central bank meetings later in the week - with the US Federal Reserve, the European Central Bank and the Bank of England all announcing policy decisions within two days of each other.

Westpac currency strategist Johnathan Bayley said there is talk of co-ordinated rate cuts.

"The market has already made up its mind about the Fed's intentions, the Fed Funds Future pricing in a 25bps [0.25 per cent] rate cut next week," he said, adding that such a move may support equity markets in the near term.