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FTSE 100 lower as Travis Perkins hit by profit warning | FTSE 100 lower as Travis Perkins hit by profit warning |
(about 4 hours later) | |
The FTSE 100 slipped back below the 7,000 level, with shares in Travis Perkins the biggest faller after the builders merchant warned on profits. | |
Travis Perkins shares dropped 6.7% after it said it was closing 30 branches, putting 600 jobs at risk, due to an "uncertain UK outlook" next year. | |
It also said core earnings for this year would be "slightly below" expectations of about £415m. | It also said core earnings for this year would be "slightly below" expectations of about £415m. |
By midday, the FTSE 100 index was down 14.11 points at 6,985.95. | |
Reckitt Benckiser was another faller in the index, down 2.6% after its sales growth slowed by more than expected in the third quarter of the year. | |
Underlying sales grew by 2%, down from 4% in the previous quarter and below analysts' estimates of 2.8%. | Underlying sales grew by 2%, down from 4% in the previous quarter and below analysts' estimates of 2.8%. |
In the FTSE 250, shares in Laird - an electronics component maker that supplies mobile phone manufacturers - plunged 45% after the company warned on profits. | |
Laird said that "the acceleration of production for mobile devices has come much later than in previous cycles and visibility on volumes remains poor". | Laird said that "the acceleration of production for mobile devices has come much later than in previous cycles and visibility on volumes remains poor". |
"In addition, we have experienced increased margin pressure due to unprecedented pricing pressures and some operational factors." | "In addition, we have experienced increased margin pressure due to unprecedented pricing pressures and some operational factors." |
As a result, it now expects full-year profits of about £50m, compared with £73,1m last year. | As a result, it now expects full-year profits of about £50m, compared with £73,1m last year. |
On the currency markets, after falling in early trade the pound was given a slight boost by the latest jobs figures, which showed the unemployment rate unchanged despite a slight increase in the jobless total. | |
By midday, sterling was unchanged against the dollar at $1.2300 and was also flat against the euro at €1.1198. |