Red shed half-year result out today

By IRENE CHAPPLE

The Warehouse Group's half-year result promises to be the highlight of a snoozy week on the sharemarket.

The group's share price suffered in February after reporting lower than expected sales figures.

The company said its December sales were weak, although January was more buoyant.

Poor weather and strong demand for games consoles stocked by its competitors over the Christmas period were blamed.

The Warehouse has indicated its interim result would be between $63 million and $65 millon pre-abnormals for the half-year.

It is expected to drop to $57-$59 million post-abnormals, compared with $59.1 million for last year.

The full year was likely to be between $96 million and $101 million, also pre-abnormals.

The Warehouse has 79 red sheds in New Zealand and about 128 in Australia.

It has said it wants to increase its New Zealand floorspace by 35-40 per cent by 2005/2006.

January retail sales figures will be released tomorrow, providing a wider indication of the retail market's health.

Carter Holt Harvey's share price may also suffer next week if its indefinite strike continues.

About 260 staff at New Zealand's biggest forestry products company stopped work on Friday after failing to negotiate a new pay agreement.

Over the weekend, Burns Philp said its A$2.2 billion ($2.4 billion) takeover bid for food giant Goodman Fielder had netted acceptances for 43.9 per cent of the stock.

Sydney-based Burns Philp, the world's biggest maker of yeast, will drop a condition it get 90 per cent of Goodman shares if it has 50.1 per cent by the close of business today. This has increased Burns Philp's chances because it means the bankers will provide funding for a smaller number of shares, investors said.

Burns Philp, controlled by New Zealand's Graeme Hart, wants control of Goodman brands such as Uncle Toby and Meadow Lea.

The New Zealand Institute of Economic Research's quarterly predictions are out tomorrow, with indications that the economy will slow.

Meanwhile, world markets are in a limbo of uncertainty as war on Iraq - tipped to begin within the next couple of weeks - looms.