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Warehouse fires may scorch Ocado in update on Tuesday

Two fires so far this, at the grocer's warehouses in Andover and Erith, are likely to have dented sales

Ocado Group PLC - Ocado to report interims on Tuesday in shadow of Andover fire

On Tuesday, online grocery giant Ocado Group PLC (LON:OCDO) will post a third-quarter trading update with the focus on the impact of fires at two of its warehouses this year.

At its interim results in July, the company lowered its full-year earnings guidance by £25mn after making a pre-tax loss of £43mln the first half following a fire at Ocado's Andover warehouse in February.

In August, the group suffered its second fire for the year, this time at its warehouse in Erith, which could have dented sales in the third quarter.

Ocado uses robots to move around groceries stored at its warehouses for its own online delivery service and other supermarkets it counts as clients including Morrison Supermarkets PLC (LON:MRW).

The group has been increasingly shifting its attention away from its retail operations towards deals with other supermarkets through its solutions business amid tough competition in the grocery sector.

While the solutions business will be the main area of focus in its upcoming trading update, the performance of the retail arm will also be assessed given that it makes up the bulk of revenues.

Significant announcements expected for Tuesday September 17:

Finals: K3 Capital Group PLC (LON:K3C), Springfield Properties PLC (LON:SPR)

Trading updates: Ocado Group PLC (LON:OCDO)

Interims: Aquis Exchange PLC (LON:AQX), Bango PLC (LON:BGO), Central Asia Metals Ltd (LON:CAML), JTC PLC (LON:JTC), Kape Technology PLC (LON:KAPE), KRM22 PLC (LON:KRM), Nahl Group PLC (LON:NAH), Personal Group PLC (LON:PGH), Smart Metering PLC (LON:SMS), Uniphar PLC (LON:UPR)

Economic data: US industrial and manufacturing production, US NAHB Housing Market Index, Eurozone ZEW Survey of economic sentiment

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