ICG's share price climbs 1.3% on positive trading news

Irish Continental Group (ICG) has said trading since its interim statement in September has been ahead of expectations.

The ICG share price climbed 1.3 per cent after the group said it now expected profits before tax to be ahead of market expectations. The group also expects full-year car volumes to be down by a lower percentage than had been expected in September. Freight volume expectations have been reviewed upwards as well.

In September, the group had forecast that full-year car volumes would be down 7 per cent. It now expects a decline of 5 per cent. On freight the group had expected full-year volumes to increase by between 9 and 10 per cent. It now expects an increase of approximately 11 per cent. John Sheehan of NCB revised his 2006 earnings per share (eps) forecast for ICG upwards to 98 cent, from 86 cent. He revised his eps forecast for 2007 to 109 cent, from 96 cent, and said the share target price for the end of 2007 was now €16.

"The freight figures are good and are based on the health of the economy and the increased integration of the [ Irish and UK] economies," he said. Most Irish towns now had UK retail chain outlets and these outlets were being supplied by way of seaborne freight. Growth in freight volumes over recent years had been outpacing economic growth.

He said the strong growth in freight volumes was partly boosted by the strike that affected last year's volumes, but there was still "very healthy" underlying growth.