Why Compass, Wolseley, and Eurasian Natural Resources Should Lag the FTSE 100 Today
LONDON -- The FTSE 100 is still hovering below the 6,400 level, up a mere four points to 6,383 as of 8:50 a.m. EDT. The U.K.'s major index is being held back today by a small handful of companies whose share prices are struggling, while markets in general are still feeling the aftershocks of the Cypriot financial earthquake.
So which companies are causing grief for the FTSE today? Here are three that are leading the way down.
Compass
Compass Group shares have been rising high of late, gaining about 25% over a 12-month period. But they've 2% this morning, extending a recent mini-reversal, after the catering-services group released a pre-close trading update ahead of first-half results due on May 15.
The first half was described as good, and we were told that full-year expectations "remain positive and unchanged." First-half organic revenue is expected to grow by 5% (excluding the effects of Easter). The group's 400 million pound share buyback plan announced in November 2012 is underway, with 93 million pounds having been returned so far.
Wolseley
We've had another reversal of late, with highflying Wolseley shares retreating from a previous annual rise of more than 30%. Today the shares are down a further 3.2% to 3,107 pence after the plumbing and building-supplies firm released halftime results.
Like-for-like revenue for the period is up 2.2%, but pre-tax profit fell 20% to 199 million pounds, and the firm is in the process of disposing of some of its European operations. Chief executive Ian Meakins said, "We continue to see strong growth in the USA, a broadly flat performance in Canada and the U.K. and very weak conditions in Europe."
Eurasian Natural Resources
Eurasian Natural Resources Corporation shares are continuing the slide that began ahead of the firm's final results announcement on March 20. Since closing at 351 pence on March 14, the price has slumped 26% to 261.5 pence, including today's 2.5% fall. Over the past year, the price is down nearly 60%.
The latest set of results from the Kazakhstan-focused miner and metals processor revealed a loss of $852 million, compared with a profit of $1.99 billion in 2011. There will be no final dividend this year.
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The article Why Compass, Wolseley, and Eurasian Natural Resources Should Lag the FTSE 100 Today originally appeared on Fool.com.
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