CIGARETTE maker Imperial Tobacco will be in the spotlight this week, while investors are expecting news on British Airways, Tate & Lyle, Smith & Nephew, ICI and Unilever.

Lambert & Butler owner Imperial Tobacco this week reports back on what is expected to be another period of solid growth for the Bristol-based cigarette maker.

The company said in September it had boosted its market share in the UK and benefited from price increases introduced earlier this year.

Imperial - which makes Regal, Embassy and Davidoff cigarettes as well as Drum and Golden Virginia rolling tobacco - has also increased sales in eastern Europe, Africa and the Middle East.

The world's fourth largest tobacco company sold 172.5 billion cigarettes and 26,600 tonnes of fine cut tobacco last year.

Its largest individual markets are the UK and Germany, although the firm sells cigarettes in more than 130 countries around the world.

Analysts have said Tuesday's full-year results are expected to show another good performance in the UK and the rest of the world, although Germany could highlight some weakness while there are concerns about increasing competition in Europe.

Goldman Sachs sees pre-tax profits coming in at é1.2bn.

Chemical maker ICI reports third quarter results on Thursday which are expected to show robust growth despite a slowing US housing market threatening the company's paints division.

The chemicals giant said pre-tax profits for the first half of the year rose from é195m to é219m thanks to a "solid performance" from paints where revenues jumped 10 per cent.

It also said there had been strong results from National Starch - which produces ingredients used in the likes of shampoo, headlights and nappies - and food flavour business Quest.

Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers, said worries over a slowing US housing market persist at the group's paint division in the third quarter.

But he added: "ICI management has continued to show their ability in reducing costs and investors remain hopeful that further reductions will be achieved."

Despite the concerns, analysts have forecast a robust third quarter with Deutsche Bank seeing pre-tax profits lifting five year-on-year to é136m.

A slowdown in the economy forced ICI to axe 1,400 jobs in 2003 and earlier this year it announced a further 2,300 cuts over the next five years. ICI currently employs 32,000 people including 4,000 in the UK.

Deficit

Mr Bowman said news of improvement in the staff pension fund deficit would also be welcomed on Thursday.

Sugar and sweeteners firm Tate & Lyle - which reports first half results on Wednesday - put its European starch business up for sale earlier this week following a fall in the price of sugar.

Tate said it will explore the full or partial disposal of its Food & Industrial Ingredients Europe division (Talfiie) as it was "no longer an essential element" of the business.

It came after July's sweeping reforms to the European Union's 40-year-old sugar regime sent sugar prices falling. The lower sugar prices will hit profitability at Talfiie, which makes isoglucose and other cereal starches and sweeteners.

But it looks like the move could have made Tate a healthy prospect for investors.

Keith Bowman, an equity analyst at Hargreaves Lansdown stockbrokers, said: "A number of analysts have been busy upgrading profits forecasts in recent days and the shares now stand at all-time record highs."

Barclays Wealth forecasts Tate will bank é160m in pre-tax profits compared with é136m in 2005.

Medical device maker Smith & Nephew is "primed for growth", according to analysts.

The company reports third quarter results on Thursday and is expected to show continued improvement with foundations for a strong year end.

Dresdner Kleinwort is expecting sales of é354m - up by five per cent on last year - after management took steps to restructure and roll out new products. Barclays Wealth is equally optimistic and sees pre-tax profits up to é75m from é62m in 2005.

S&N was founded in 1856 and operates in 33 countries where it has over 8,000 employees, including a plant in Birmingham where it develops products for treating complex bone fractures.

British Airways will be back in the spotlight this week as it updates the market on its performance during the second quarter.

And the question on everyone's lips will be how well has the airline recovered since the summer's security alerts at Heathrow Airport?

Barclays Wealth sees British Airways reporting pre-tax profits of é222m compared to é241m last year. Tweet