Diageo 1H profit up 16.6 percent

Diageo PLC, the world's largest producer and distributor of alcoholic drinks, said Thursday its profit for the last six months of 2008 rose 16.6 percent, but warned the impact of the global recession has intensified, clouding its earnings outlook.

The company reported a profit of 1.14 billion pounds ($1.63 billion), up from 975 billion pounds a year earlier, for the last half of the year, which is the first half of the company's fiscal year. Sales were up 18 percent to 6.7 billion pounds.

Diageo said the effects of the global economic downturn became more pronounced in November and December.

"Current economic trends indicate that consumer …