Companies reporting next week

INVESTORS will have their hands full next week with trading updates from some of the market's biggest stocks. Results from the likes of British Airways, Marks & Spencer and British Telecom will provide a further indication of when the UK economy may begin to recover.

Oil giant BP should see its strong earnings growth so far this year come to an end on Tuesday when it reports third-quarter numbers. Rival Shell saw its profits dip 17% this week following lower oil and gas prices, and the falls will hit BP despite production growth remaining on track to hit 5.5% this year. City analysts predict BP's profits will drop to $2.99bn (£2.05bn) from the $3.79bn recorded last year, with the group's exposure to the natural gas market in the US having a major impact.

Marks & Spencer raised hopes the long-awaited turnaround in its fortunes may finally be taking place last month when it reported far better sales figures for the second quarter than expected. The retailer ended a three-year slide after posting sales growth in the 12-week period of 2.8%, leading analysts to upgrade their profit forecasts ahead of its interim results on Tuesday. Pre-tax profits of £208.9m are now forecast, up from £183.7m, and while M&S is unlikely to give little away on current trading, it may provide an update on plans to sell its US chains Brooks Brothers and Kings Super Markets.

British Airways was already seeing a steady fall in passenger numbers before the tragic events of 11 September and now it finds itself in a sector beset with job cuts, grounded planes and profit warnings. Tuesday's interims will include only three weeks' of trading since the attacks but passenger numbers in September fell by 22% and by 32% on the transatlantic routes. Cargo traffic fell by 38%.

Analysts will be keen to discover if the slump continued into October and get an update on BA's plans for closer links with American Airlines and KLM. No interim dividend is expected, and fund manager Gerrard predicts BA will report underlying pre-tax profits of £100m, down from £217m last time.

British Telecom will issue separate figures for its soon-to-be demerged mobile phone subsidiary mm02 and the remaining core business BT Group when it announces half-year results on Thursday. Attention will be focused on mm02 after it published disappointing subscriber numbers last month and the search for a replacement to outgoing BT chief executive Sir Peter Bonfield.

Significant changes to the structure of the company mean profit comparisons will be worthless, although group pre-tax profits are expected to be in the region of £425m.

Retailer Boots' surprise decision to move all of its pension fund into bonds should come under further scrutiny when it issues interim results on Thursday. The company's most recent trading statement suggested a mixed picture so interest will also focus on the updated like-for-like sales figure. Fund manager Gerrard expects a 2.5% rise in pre-tax profits to £278m but warns that exceptional items will be high because of restructuring costs and the sale and closure of some businesses and products.

Royal & SunAlliance has already said it expects liabilities from the US terrorist attacks to be £200m so the life insurer will be under pressure to show if it plans to recoup those losses through higher premiums.

The market will also want an update on Thursday about progress in R&SA's long-stated aim of extracting capital from its life business to fund the growth of its general insurance operation. Third-quarter operating profits are likely to be down to £380m from £502m.

Electricity group Scottish & Southern should report another period of solid earnings growth when it issues interim results on Thursday. While progress in generation profits is likely to have been limited by new electricity trading arrangements, the impact should be offset by the commissioning of a major new generation unit.

Returns from distribution and supply are expected to have been buoyed by further cost reductions as Scottish & Southern delivers half-year profits of £225m compared with £213m last year.