Why Rexam, Domino Printing Sciences, and Petrofac Should Lag the FTSE 100 Today
LONDON -- The FTSE 100 is picking up a bit today after yesterday's fears of a Chinese liquidity crunch led to a big sell-off. As of 7:50 a.m. EDT, the index of top U.K. stocks is up 65 points, or 1.08%, to 6,094, but it has still given up almost all of its 2013 gains so far.
Which companies are not sharing in today's modest rebound? Here are three from the indexes that are slipping.
A first-half profit warning from Rexam sent its shares down 5% to 442 pence this morning, further wiping out the gains seen during the first few months of 2013. The maker of beverage cans has also decided to sell off its health care packaging division, which accounts for about 10% of current business.
With volume growth coming in slower than expected, Rexam now expects performance for both the first half and the full year to come in below previous expectations, with chief executive Graham Chipchase saying, "It has been a challenging first half, but we have taken assertive action on costs to mitigate the impact on our performance and maintain our capital discipline."
Domino Printing Sciences is another company whose early share-price gains for 2013 have started to evaporate, with the price now down overall since the start of the year. And it dropped a further 2.7% this morning on the release of first-half results.
Although revenue at the printing technologist is up 7% to £162 million, a rise in selling costs led to a 3% fall in underlying pre-tax profit to £25 million and a 4% fall in underlying earnings per share to 16.58 pence. But on the bright side, the interim dividend has been lifted 5% to 7.6 pence per share.
Petrofac shares have fallen 4% to 1,185 pence, their lowest price of the past 12 months, after the firm confirmed in an update ahead of interim results that it only expects "modest growth" in net profit for 2013. The oil and gas services firm also expects that growth to come from the second half of the year, so first-half figures are unlikely to be sparkling.
Petrofac's business does carry some unusual risk. The firm was forced to temporarily evacuate its staff from the Amenas gas site in Algeria after a terrorist attack in January; operations should recommence in the second half of the year.
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The article Why Rexam, Domino Printing Sciences, and Petrofac Should Lag the FTSE 100 Today originally appeared on Fool.com.Alan Oscroft has no position in any stocks mentioned. The Motley Fool recommends Petrofac. The Motley Fool owns shares of Domino Printing Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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