Companies reporting next week

THE retail sector will lead corporate announcements this week with both B&Q owner

Kingfisher buoyed investors with a positive trading update last month and profits at the top of market hopes are expected in its full-year results on Wednesday, rising to £610m in the 12 months to January 31 from £521m in the previous year.

A robust 5.1% increase in like-for-like sales across the group was propelled by a strong performance at B&Q, while an easing of economic conditions in France also helped its Castorama chain make progress.

Fears of a slowdown in consumer spending in the UK and its knock-on effect for the DIY market have clouded the outlook in recent months, but analysts are expecting Kingfisher to grow at a steady rate in 2004, even in a slower spending growth environment.

Cruise giant Carnival has already said 2004 promises to be a 'transforming year' while confidence has also been fuelled by booking levels running 59% ahead of 2003 during the key period of between January and March.

It is understood the group, which posts first quarter numbers on Thursday, has raised prices in response to demand while costs are expected to be at the low end of previous guidance. Higher fuel costs and the weak US dollar are likely to be largely offset by lower-than-expected advertising fees.

Miami-based Carnival, which acquired UK company P&O Princess in 2003, has taken delivery of the largest ship totally dedicated to the European market as Cunard's Queen Mary II liner entered service in mid-January, with five others due to take to the waves later in the year.

Analysts are hoping for further news that advertising revenues are picking up when media group Daily Mail & General Trust issues a trading statement on Thursday.

The company - publisher of the Daily Mail and Evening Standard newspapers and a number of online operations including This Is Money - grew turnover at its regional newspaper business by 3% last year and a further improvement in like-for-like revenues is expected, mainly from recruitment and property advertising.

Some pick-up is expected in display advertising from the national newspapers and, together with a modest rise in circulation revenues, the overall picture should be positive at Associated Newspapers.

Fund manager Gerrard said comments on DMGT's intentions regarding the Telegraph newspapers auction may be forthcoming.

Morrisons will post its final annual results as a stand-alone company on Thursday after its £3bn takeover of rival Safeway was finally completed this month.

Analysts expect the group to report an excellent year, helped by a benign trading environment in the food retail sector, with pre-tax profits around £318m in 2003 compared with £275m a year ago.

A like-for-like sales increase of 9.3% is also expected but the main focus will be the outlook for the combined group. Little new information is anticipated although there may be a current trading update for both businesses.

Steel group Corus should take another step on the road to recovery on Thursday as full-year results are expected to show operating losses of between £50m and £150m, against £393m a year earlier.

The troubled group is likely to have benefited from its ongoing restructuring campaign - 1,150 jobs are due to go before the end of 2004 - and the recent increase in steel prices.

Analysts will also be looking for an update on recently revived attempts to sell its aluminium operations - a year after the collapse of a deal to sell the business to French group Pechiney.

Engineering group Weir could update investors on opportunities to participate in the reconstruction of Iraq when it issues full-year results on Tuesday.

The Glasgow-based group, which is a specialist in the manufacture of pumps and valves, described its half-year performance in August as ?solid‘ and said the rest of the year was likely to be similar.

Results for 2003 are expected to show the impact of ongoing tough trading conditions with profits forecast to be in the region of £55m, against just under £60m a year earlier.