Weak pound helps earnings at C&W

Telecoms firm Cable & Wireless has said it is on track to meet full-year earnings targets, having been helped by the recent weakness of the pound.

It said trading had been in line with expectations, with annual earnings set to be at least £780m.

C&W added that it was confident it was "well positioned going into 2009/10".

C&W said the integration of Thus, which it bought last year, was going well and said that it would be shedding 600 jobs as it absorbed the business.

The job cuts were originally announced in November last year.

'Strong' trade

C&W said the recent weakness of the pound against the dollar would help to boost its revenue.

The company has "significant" dollar earnings from its international operations, so the strength of the dollar against the pound will help its results when the earnings are converted back into sterling.

C&W chairman Richard Lapthorne said the firm's businesses were "performing very much in line with our expectations".

"We remain alert to the economic environment but we continue to trade strongly," he said.

Source: BBC News, 10th February 2009

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