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LONDON (Alliance News) - Barclays Tuesday reported a fall in pretax profit in 2014, hit by more provisions over alleged foreign exchange manipulation and insurance mis-sold to customers in the UK, and a technical change in the valuation of a portfolio of loans held in its non-core unit, although its profit rose excluding those and other non-operating items.

Its pretax profit fell to GBP2.26 billion, from GBP2.87 billion in 2013, and it swung to a net loss of GBP174 million, compared with a GBP540 million net profit in 2013.

An additional GBP750 million provision for the ongoing investigations and litigation relating to the alleged foreign exchange rigging, another GBP200 million charge to cover the costs of the mis-selling of payment protection insurance, and a GBP935 million charge for the revaluation of a loan portfolio meant it swung to a pretax loss of GBP1.47 billion in the fourth quarter alone.

Its closely-watched adjusted pretax profit, which strips out the provisions and some other items, rose 12% to GBP5.50 billion in 2014 as a whole, partly thanks to a 9% fall in adjusted operating expenses to GBP18.07 billion as the bank cut jobs and made other savings.

The adjusted figure beat analysts' expectations, but that wasn't enough to prevent the bank's shares from falling and it is the worst performing stock in the FTSE 100 on the day.

While arguing that Barclays is in a better position now than at any time since the financial crisis of 2007-09, Chief Executive Antony Jenkins admitted there is still work to be done to restructure, cut costs and improve the bank's capital strength.

Metals and mining giant Glencore joined sector peers in slashing its capital expenditure plans, after it reported lower 2014 profits hit by the fall in the oil price and prices for other commodities that more than offset higher revenue for its commodities trading business.

The company said its capital expenditure fell to USD8.57 billion in 2014, from a pro-forma USD1132 billion in 2013, and it now expects total industrial capital expenditure for 2015 to be between USD6.5 billion and USD6.8 billion, down from its previous guidance of USD7.9 billion.

Glencore said it reviewed its capital expenditure budget to reflect the "volatile market backdrop," and on top of the cut to capital expenditure it said it will also curtail coal production in Australia and South Africa to better suit "current market demand," which will reduce expenditure further.

Glencore reported a closely-watched adjusted earnings before interest, tax, depreciation and amortisation of USD12.76 billion for 2014, down from a pro-forma USD13.07 billion in 2013, while net profit fell to USD2.31 billion, from a pro-forma USD2.47 billion. The pro-forma 2013 figures reflect the updated fair value acquisition accounting for the acquisition of Xstrata.

Still, the company said it will pay a final cash distribution of USD12 cents a share, up 9% on the year, confounding expectations that it could hold or even cut its dividend payouts.

"While there remains the potential for future economic setbacks and no shortage of bearishness towards commodities in financial markets, physical demand for our raw materials remains healthy. We anticipate tightening supply conditions to materialise in our key commodities in response to lower prices, production and/or investment cutbacks and falling grades," said Chief Executive Ivan Glasenberg.

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Markets: UK shares are trading lower in another busy day of corporate reporting.

Wall Street is set for a slightly lower start, with stock futures indicating that the DJIA, S&P 500 and Nasdaq 100 will all open down 0.1%.

FTSE 100: down 0.2% at 6,930.53
FTSE 250: down 0.1% at 17,227.72
AIM ALL-SHARE: down 0.1% at 712.68
GBP-USD: down at 1.5356
EUR-USD: down at 1.1156
GOLD: up at USD1,209.37 an ounce
OIL (Brent): up at USD61.41 a barrel
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Other Top Corporate News
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British American Tobacco said its Brazilian unit British American Tobacco Prestação de Serviços Ltda has filed a request with the Brazilian securities regulator to register a public tender offer to acquire up to all of the 24.7% of Souza Cruz shares which are not currently owned by BAT and to delist the company.
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Taylor Wimpey joined sector peers in reporting strong growth in 2014 profits driven by higher home completions at higher average selling prices, and it was also positive about its outlook saying the so-called "spring selling season" has got off to a better start than it had expected. The home builder reported a pretax profit of GBP468.8 million for 2014, up from GBP306.2 million in 2013, as revenue rose to GBP2.69 billion, from GBP2.30 billion. It raised its total maintenance dividend for 2014 to 1.56 pence from 0.69p in 2013, including a final dividend of 1.32p, up from 0.47p.
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Direct Line Insurance Group warned that the UK motor and home insurance markets are still highly competitive, with the opening months of the new year showing signs of more pressure in motor and "broad stability" in the home market. The group's update came within annual results showing that pretax profit for continuing operations rose to GBP456.8 million in 2014, compared with GBP407.3 million in the prior year. Operating profit from ongoing operations crept down to GBP506.0 million from GBP509.9 million. Direct Line increased its total dividend for 2014 to 27.2 pence from 20.6 pence in 2013.
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Ashtead Group said it now expects its full-year results will be above its previous expectations, after it reported strong growth in third-quarter earnings driven by strong revenue growth in both its US and UK operations. The equipment rental company reported a pretax profit of GBP109.9 million for the three months to January 31, the third quarter of its financial year, up from GBP77.9 million a year earlier, as revenue rose to GBP512.9 million, from GBP400.1 million.
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Travis Perkins reported higher pretax profit and revenue for 2014 as the continued recovery in the UK housing market drove good revenue growth in its general merchanting and contracts divisions, although profit growth was held back partly by restructuring costs for its plumbing and heating business. The company reported a pretax profit of GBP321.4 million for 2014, up from GBP312.6 million in 2013, even though revenue grew strongly to GBP5.58 billion from GBP5.15 billion.
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Pace expressed confidence in making "further progress" in 2015, saying it expects earnings to rise, as it posted a increase in pretax profit for 2014. The maker of products such as set-top boxes for pay-TV and broadband providers proposed a final dividend of 4.75 cents per share, taking its total dividend to 7.00 cents, up 27.5% from 5.49 cents in 2013. Pace posted a pretax profit of USD175.7 million, up from USD130.8 million, as a rise in revenue to USD2.62 billion from USD2.47 billion offset an increase in cost of sales and a rise in administrative expenses to USD351.6 million from USD309.4 million.
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Marine services company James Fisher & Sons reported a rise in pretax profit and revenue in 2014 and increased its dividend by 10% on the back of a solid performance across its business, and said it has struck a deal to buy a South African marine services company. The FTSE 250-listed company said its pretax profit ticked up to GBP49.2 million, from GBP46.2 million in 2013, as revenue rose to GBP444.8 million from GBP413.7 million.
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Manufacturing company Rotork said its pretax profit rose in 2014 as revenue was buoyed by strong sales in the power market, and it said that growth in other sectors would help offset the challenging energy markets it is expecting in the current year. The FTSE 250-listed company, which makes actuators and flow control products, said its pretax profit for the year was GBP141.2 million, up from GBP138 million in 2013, as revenue rose to GBP594.7 million from GBP578.4 million on the back of a 16% increase in sales to the power market.
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Jardine Lloyd Thompson Group reported higher profits and revenue for 2014 as it managed to combat a market decline in both insurance and re-insurance rates, and it said it was confident in its revenue growth momentum going forward. The insurance, re-insurance and employee benefits adviser and broker reported a pretax profit of GBP159.7 million for 2014, up from GBP154.6 million in 2013, as revenue rose to GBP1.10 billion, from GBP979.2 million, but its operating margin slipped to 17.8% from 18.9%.
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Tullett Prebon reported lower profit and revenue for 2014 as market conditions for interdealer brokers remained challenging amid subdued trading activity, and it said revenue in the first two months of 2015 is flat excluding its recent acquisition of PVM. Tullett reported a pretax profit of GBP33.5 million for 2014, down from GBP84.4 million in 2013, while the figure excluding exceptional and acquisition-related items fell to GBP86.6 million from GBP99.6 million as revenue declined to GBP703.5 million from GBP803.7 million. Despite the profit fall, Tullett said it will pay an unchanged total dividend of 16.85p.
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Vesuvius reported a rise in pretax profit in 2014 despite lower revenue as the group improved its profit margins and brought down costs. The molten flow engineering company said its pretax profit for 2014 was GBP111.2 million, compared to GBP104.1 million last year. Revenue fell to GBP1.44 billion from GBP1.51 billion last year, but the group brought down its manufacturing and administrative costs in the year to improve profitability. The group will pay a total dividend for the year of 16.125 pence, compared to 15 pence last year.
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Transport company Stagecoach Group reported like-for-like revenue growth across its operations as the company said it remains on track to meet its expectations for the year. Stagecoach said its overall profitability in the first 40 weeks of its financial year, ending April 30, was "satisfactory", and it remains on track to meet its expectations for its full-year results.
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Laird said it has good momentum for further growth in 2015, as it posted a rise in pretax profit for 2014 and upped its total dividend. The company proposed a final dividend of 8.23 pence, taking its total dividend for 2014 up to 12.5 pence from 12.0 pence in 2013. Laird posted a pretax profit of GBP48.1 million, up from GBP43.2 million, as revenue rose 5% to GBP564.9 million from GBP537.0 million. On a dollar basis, revenue was up 11%. The company makes around 70% of its revenue in dollars.
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AIM Movers
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Hydro International shares are up after it said its pretax profit rose in 2014 as an improvement in its margins offset flat revenue. Crimson Tide is also up after it said it expects its 2014 earnings before interest, taxation, depreciation and amortisation and pretax profit to be ahead of market expectations and higher year-on-year. Vernona Pharma is another gainer after it said it is likely to report a slightly lower-than-expected pretax loss for its full year, although it also warned that it expects its costs in 2015 to be around a third higher than it had previously expected. Bacanora Minerals is also up after Rare Earth Minerals said it has increased its stake in Bacanora to 15.02% though further market purchases totalling GBP334,564. It previously held a 14.48% stake. ISG has lost more than a quarter of its value after it swung to a loss in the first half of its financial year owing to issues with contracts secured in the past and said it will raise GBP16 million in a discounted share placing. Webis Holdings shares are down by a fifth after it said it is to close down its BetInternet.com Ltd business this week after failing to find a buyer for the business.
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Top Economics And General
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The UK construction sector expanded strongly in February as new orders logged the steepest rise since October 2014, survey data from Markit showed. The Chartered Institute of Procurement & Supply/Markit construction Purchasing Managers' Index rose to 60.1 in February from 59.1 in January. It was forecast to fall to 59. The score was above the neutral 50 threshold for the twenty-second straight month. The index signaled a sharp expansion of construction output that was the fastest since October 2014. Output growth rebounded from December's 17-month low. Residential, commercial and civil engineering activity all increased at the steeper rates in February.
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The Reserve Bank of Australia decided to leave its cash rate unchanged at its March meeting, belying expectations for a back-to-back rate cut. The monetary policy board maintained the cash rate at 2.25% after lowering it by 25 basis points last month. Some economists had expected the bank to lower rates further this month.
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Eurozone producer prices declined most since November 2009 on falling energy prices, Eurostat reported. Producer prices fell more-than-expected 3.4% on a yearly basis in January, following a 2.6% drop in December. This was the biggest fall since November 2009. Economists had forecast a decline of 3%. Excluding energy, producer prices declined only 0.7% from last year, after falling 0.4% in the previous month.
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Germany's retail sales rose at a faster pace in January from the previous month, taking the annual growth to the highest level in four-and-a-half years , preliminary figures from Destatis showed. Retail sales grew a seasonally adjusted 2.9% month-on-month in January, much faster than December's 0.6% increase. Economists had expected sales to rise at a weaker pace of 0.4%. This was the fourth consecutive monthly increase. On an annual basis, retail sales climbed for the second straight month in January at faster pace of 5.3%, after a 4.8% growth logged in the prior month. Economists had forecast only a 3.0% growth for the month. The latest rate of increase was the highest since June 2010, when sales had risen 6.0%.
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Economic data from the eurozone appears to have vindicated Mario Draghi, the European Central Bank's chief. After signs of the threat of deflation, data released on Monday showed annual consumer prices falling at a slower pace. Unemployment, meanwhile, has dropped to its lowest level since April 2012. But the good news is unlikely to result in the European Central Bank rethinking its monetary stimulus plans. Instead, analysts will be eager to hear more details from Draghi about the central bank's new asset-buying scheme. On Thursday, when the ECB holds its next regular out-of-town meetings, this time in the Cypriot capital Nicosia, the Frankfurt-based ECB is unlikely to announce any new policy measures or changes to its key refinancing rate, currently at an historic low of 0.05%.
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Switzerland's economy grew more than expected in the fourth quarter, data from the State Secretariat for Economic Affairs revealed. Gross domestic product advanced 0.6% from the third quarter, when it was up by 0.7%. Economists had forecast the growth rate to ease to 0.3%. On a yearly basis, GDP advanced 1.9% in the fourth quarter, the same rate as seen in the third quarter. It was forecast to slow to 1.7%. In the full year of 2014, the economy expanded 2%, which was slightly faster than the 1.9% growth seen in 2013.
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The energy ministers of Russia and Ukraine have pledged to live by a deal guaranteeing gas supplies through the end of March and are ready to hash out a follow-on agreement, the EU said. The EU mediated between the two sides after Moscow threatened to cut off supplies to Kiev. There have long been tensions between the two over energy, with Europe often caught in the middle. The continent is highly reliant on Russian gas, much of if passing through Ukraine. "I am reassured that the supply of gas to the EU markets remains secure," the bloc's top energy official, European Commission Vice President Maros Sefcovic, said in a statement after talks in Brussels with the two ministers, Alexander Novak and Volodymyr Demchyshyn.
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The killing of leading Russian opposition politician Boris Nemtsov sent an exchange of warnings and charges across Europe, as a top Polish legislator was denied an entry visa to attend the funeral. Bogdan Borusewicz, president of the Polish Senate, charged that Russian President Vladimir Putin was steering Russia into a dictatorship. "This is without doubt an authoritarian system that is headed into a dictatorship," the one-time rights activist said on Polish television TVN24.
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Israeli Prime Minister Benjamin Netanyahu said his planned address Tuesday to the US Congress on Iran's nuclear programme is not intended as a sign of disrespect to US President Barack Obama. The speech, which has caused a public rift between the two leaders, is instead intended to "speak up about a potential deal with Iran that could threaten the survival of Israel," Netanyahu told the American Israeli Public Affairs Committee in Washington. Iran is negotiating a deal with Britain, China, France, Russia, the US and Germany to curb Tehran's uranium enrichment and other parts of its nuclear programme in return for ending economic sanctions on Tehran.
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Afternoon Watchlist (all times in GMT)

13:50 US Redbook index
14:45 US ISM New York index
15:00 US IBD/TIPP Economic Optimism
n/a US Total Vehicle Sales
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Wednesday's Key UK Corporate Events

CLS Holdings - Full Year Results
Fresnillo - Full Year Results
Tarsus Group - Full Year Results
4imprint - Full Year Results
Cambian Group - Full Year Results
BBA Aviation - Full Year Results
Capital & Regional - Full Year Results
Carillion - Full Year Results
Dignity - Full Year Results
International Consolidated Airlines Group - February Traffic Statistics
ITV - Full Year Results
Legal & General - Full Year Results
Lookers - Full Year Results
Melrose Industries - Full Year Results
Greggs - Full Year Results
Standard Chartered - Full Year Results at 0815 GMT
Mithras Investment Trust - Full Year Results
Novae Group - Full Year Results
Sportech - Full Year Results
Advanced Medical Solutions Group - Full Year Results
Exova Group - Full Year Results
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Wednesday's Key Economic Events (all times in GMT)

00:01 UK BRC Shop Price Index
01:15 US Fed's Yellen Speech
01:35 Japan Markit Services PMI
01:45 China HSBC China Services PMI
08:45 Italy Markit Services PMI
08:50 France Markit Services/Composite PMI
08:55 Germany Markit Services/Compsite PMI
09:00 EU Markit Services/Composite PMI
09:30 UK Markit Services PMI
10:00 EU Retail Sales
12:00 US MBA Mortgage Applications
13:15 US ADP Employment Change
14:00 US Fed's Evans Speech
14:45 US Markit Services/Composite PMI
15:00 US ISM Non-Manufacturing PMI
15:30 US EIA Crude Oil Stocks change
18:00 US Fed's George Speech
19:00 US Fed's Beige Book
22:00 US Fed's Richard Fisher's speech
23:50 Japan Foreign bond/stock investment
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