Why Wolseley and Severfield-Rowen Lagged the FTSE 100 Today
Jun 4th 2013 3:37PM
Updated Jun 4th 2013 4:30PM
LONDON -- The FTSE 100 bounced back a little today after a couple of days of losses, climbing 0.51% to close at 6,556. Confidence seems to be flowing back as fears of the early cessation of economic-stimulus measures once again fade.
On a positive day of trading, which stocks lagged? Here are two from the indexes that slipped.
Wolseley shares plummeted 6.3% after the plumbing, heating, and building supplies firm released third-quarter figures. Revenue for the period ending April 30 was up 6% to £3.23 billion and up 2.4% in like-for-like terms. Gross margin remained consistent with a year ago, with trading profit up up 7.9% to £150 million. Net debt climbed from £277 million a year ago to £694 million.
But what spooked investors was the firm's performance in Europe: Like-for-like sales were down 9.2% in France, 4.6% in Central Europe, and 7.3% in the Nordic countries.
Shares in structural-steel maker Severfield-Rowen dropped 4% to 48 pence after the firm slumped to a full-year adjusted pre-tax loss of £21.5 million. As previously announced, there will be no final dividend this year. The biggest problem has been the "Cheesegrater" building at 122 Leadenhall Street, where several contract issues have led to a significant financial loss.
We also heard that the firm has a new chief operating officer in Ian Cochrane. He is the former managing director of Fisher Engineering, which is now owned by Severfield-Rowen.
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The article Why Wolseley and Severfield-Rowen Lagged the FTSE 100 Today originally appeared on Fool.com.Alan Oscroft has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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