As part of the plan, Amazon has agreed to purchase 100,000 electric delivery vans from vehicle manufacturer Rivian.Technologyread more
The plan will allow Medicare to negotiate lower prices on as many as 250 drugs and also apply those discounts to private health plans.Health and Scienceread more
The U.S. economy will have a tough time at the start of 2020, says the head of one of the largest bond managers in the world.Delivering Alpharead more
President Donald Trump on Thursday filed a lawsuit against Manhattan District Attorney Cyrus Vance Jr. and his longtime accounting firm Mazars.Politicsread more
GM's usage of temporary workers, potential closure of plants and health care contributions remain major sticking points, according to people familiar with the talks.Autosread more
A new Hollister store is coming later this month to New York, right down the block from Macy's, Target and Victoria's Secret in the busy Herald Square shopping district.Retailread more
Newly public ride-sharing companies Uber and Lyft have tumbled 25% since their initial public offerings, but Light Street's Glen Kacher still believes there's a path for...Delivering Alpharead more
The Federal Reserve has calmed the overnight funding market and brought its fed funds rate back in line with its target.Market Insiderread more
The PSA features kids in what initially appears to be a cheerful spot. But it becomes darker as children show how their "back to school" products help in the context of a...Politicsread more
The formats will be available for Facebook's News Feed.Technologyread more
As the Federal Reserve cuts rates, that could make it more difficult for retirees to earn income on their investments and preserve capital. A new ranking takes a look at which...Personal Financeread more
* Maintains group guidance for 2018-19 year
* Expects Primark's margins to fall in new financial year
* Anticipated decline reflects currency moves
* Shares down 3.6% (Adds detail, FD comment, shares)
LONDON, Sept 9 (Reuters) - Associated British Foods warned on Monday that profit margins at its Primark fashion business will fall in its new financial year as a weaker pound pushes up import costs.
Shares in the group, which generates about half of its revenue and profit from Primark, were down 3.6% at 0836 GMT, paring gains for the year so far to 11%.
AB Foods kept its overall group guidance for the year to Sept. 14 2019, with Primark's margins increasing. However, it forecast they would fall in the 2019-20 year.
"The strengthening of the U.S. dollar during this year and the recent weakening of sterling will increase the cost of goods for next year," it said.
AB Foods' finance chief John Bason pointed out that two thirds of the group's operating profit is earned outside of Britain. That means the group as a whole gets a translation gain from sterling weakening. "But for Primark it's a negative," he told Reuters.
Primark's performance in the current 2018-19 financial year has been solid, leading AB Foods to maintain its overall guidance for the year, which also reflected solid profits at its grocery business that includes brands such as Twinings, Ovaltine and Ryvita.
They offset a decline in the group's sugar operations.
AB Foods, which also owns major agriculture and food ingredients businesses, forecast adjusted earnings per share in line with 2017-18's 134.9 pence.
It said Primark's full-year sales are expected to be 4% ahead of last year, driven by increased selling space, but like-for-like sales are set to fall by 2%.
Primark continues to win market share in Britain, although like-for-like sales are expected to decline 1% in the current financial year in a soft overall market, the group said.
The outlook for sugar in 2019-20 was more promising.
"We've actually got much better visibility on particularly EU pricing and an improvement in profitability in our European sugar businesses," said Bason.
"There's no doubt that 2018-2019 will be seen as the low water mark for our sugar profitability, with a nice improvement next year."
The group said its businesses had completed all practical preparations for Britain leaving the European Union and contingency plans were in place should it experience disruption at the time of exit.
Shares in AB Foods, which is majority-owned by the family of Chief Executive George Weston, were down 85 pence at 2,268 pence at 0834 GMT, valuing the business at 18 billion pounds.
($1 = 0.8153 pounds) (Reporting by James Davey, Editing by Paul Sandle/Louise Heavens/Susan Fenton)