Reason why26 Aug 2009 10:36
STOCKS NEWS Reuters Results diary
Europe Real-time Equity News
UK Stocks on the move
UK smallcaps UK smallcaps news
08:00GMT 26Aug2009-Costain falls on 2009 interest, pension hit
--------------------------------------------------------------
Shares in Costain fall 5.7 percent after the construction company reports a 31 percent fall in first half profit, with the group likely to take a full-year hit on interest earnings and pension payments.
'In view of current interest rates, interest income is likely to be significantly lower in 2009 than in 2008 and we expect a 4.5 million pounds non-cash impact from pensions as the expected returned on plan assets falls short on the liabilities,' say Arbuthnot analysts.
They add that 2009 will likely show an improvement in operating profit, but a reduction at the net level.