Imperial sees further earnings growth

Britain's Imperial Tobacco Group today said earnings grew further in the last three months of 2007 along with higher cigarette…

Britain's Imperial Tobacco Group today said earnings grew further in the last three months of 2007 along with higher cigarette volumes and share gains in many markets.

The world's fourth-biggest tobacco firm said it was trading in line with its expectations in an update ahead of its annual general meeting later today.

Chief executive Gareth Davis said after a record year for the company in the year to September 2007, positive trading trends continued in its first quarter to December 2007.

Last week, Imperial completed its €12.6 billion takeover of Franco-Spanish cigarette maker Altadis, and made a €910 million bid for the 40 per cent of Spain's Logista that Altadis does not control.

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Imperial confirmed its rights issue to pay for Altadis will be no more than £5 billion and will be completed by July 18th, 2008, a year after it announced the deal.

Imperial shares had fallen over its rights issue and delays over an Altadis deal to a low of £21.34 on January 23rd but recovered and were off 0.1 per cent at £23.68 today.

In Britain, where it makes over a third of group profits, its annual cigarette market share was stable at 46.4 per cent, in a market that fell 4 per cent to 47 billion cigarettes in 2007 partly due to public smoking bans implemented in the year.