Imperial meets market hopes

Imperial Tobacco Group said its business so far this financial year is in line with market expectations, despite the stormy economic conditions.

The Bristol-based company said the trading is largely due to recent gains in Asia, the Middle East, and Africa.

Imperial also announced it is "on track" to deliver $242.6 million in cost cuts and efficiencies by the end of its financial year.

Recent cost-cutting measures have included closing a factory in Bristol and moving production to Nottingham.

A spokesman said: "We continue to make good progress with integration and recently concluded our consultations in Germany and Spain.

"This successfully brings to a close all negotiations required to implement the European integration projects."

"We remain on track to deliver the previously announced operational efficiencies of approximately 180 euros million by the end of this financial year, of which approximately 80m will have been realised by the end of March.

"Our estimates of 300 million euros by the end of our 2010 financial year rising to 400 million euros by the end of 2012 are unchanged."

The company said that better-than-expected sales in Asia, the Middle East, and Africa have been offset by weaknesses in some European Union countries, particularly Poland and the Netherlands, and in its travel retail business.

Imperial bought Spanish company Altadis last year.

The firm is the fourth-largest cigarette maker in the US and it added that sales have fallen by four per cent in the UK, while in Germany sales shrank two per cent.

"It's a solid and reassuring statement, supportive of the market's expectations," said analyst Martin Deboo.

Meanwhile, Alison Cooper has been named as the new chief operating officer, reporting to chief executive officer Gareth Davis.

Imperial Tobacco is shutting down six plants across Europe after the number of cigarettes smoked in the European Union dropped to 688 billion in 2006 from 773 billion as a result of the smoking ban.