* Viridor H1 profit seen 30.5 pct lower at 27.8 mln stg
* Expects group H1 profit up over 3 pct to 111 mln stg
* Sees Viridor FY profit somewhat below expectations
* Shares down 5.7 pct
LONDON, Nov 15 Britain's Pennon warned
annual profit at its waste management business would miss
analyst forecasts as a weak global economy depresses prices for
waste paper and recovered metals used in recycling.
Shares in the company dropped as much as 10 percent on
Thursday after it said first-half profit before tax and joint
ventures at Viridor would fall 30.5 percent to 27.8 million
pounds ($44 million).
Recycling revenue was expected to fall by 18.8 million
pounds, it said, adding that while analysts expect a price
recovery in the second half of the year, it had not seen one and
now anticipated Viridor's annual profit would be "somewhat
below" the bottom of current market forecasts.
The range of analyst expectations for full-year profit
before interest, tax and joint ventures at Viridor, which
typically accounts for around a third of total group profit, is
54.5 million pounds to 77.3 million pounds.
However, the company said its water and sewerage business,
South West Water, had continued its strong operational
performance against its 2010/15 regulatory contract.
It expects the unit to post a 10 percent rise in first half
pretax profit to over 83 million pounds, helping group profit
for the first six months of the year up over 3 percent to 111
million pounds - ahead of an analyst consensus of 108.7 million.
At 1625 GMT, Pennon shares were down 5.7 percent at 665.5
The group said Viridor, which was seen as a key driver of
growth for Pennon, had made good progress on a growing pipeline
of projects that would underpin its long-term profit momentum.