Sector movers: Reckitt weighs on household goods sector
The household goods and home construction sector was topped the fallers list today, as a disappointing outlook statement from Cillit Bang, Clearasil and Strepsils maker Reckitt Benckiser dragged shares lower.
By 16:03, shares were down 4.24%, with the stock among the worst performers on the FTSE 100, after its chief executive, Rakesh Kapoor, warned that sales growth will likely slow in the fourth quarter.
Sales in the year-to-date are 15% higher than the same period last year on a constant currency basis, so the group is clearly expecting a marked slow-down in the fourth quarter to meet its target of at least 10% growth.
The Reckitt Benckiser Pharmaceuticals division reported strong sales growth in the third quarter, with net revenues rising by 11%. However, fourth quarter trading is expected to be affected by the impact of recent health reforms in the US and net revenues in the last three months of the year will fall year-on-year by a mid-teens percentage, the firm said. Profits will be down by a higher percentage.
The oil and gas producing sector was performing well, however, with giants BP and BG Group heading the risers on the blue chip index.
Oil and gas giant BG Group was soaring high after raising its LNG operating profit guidance for 2011, while group adjusted net income for the third quarter came in 5% ahead of consensus estimates
BP was hot on its heels after releasing a statement which Prime Markets says draws a line under the impact of the Gulf of Mexico disaster. The company today promised to build a "stronger and safer" company, as it plans to sell-off more low-returning assets and invest in higher-growth opportunities.
Top performing sectors so far today
Personal Goods 20,484.34 +2.52%
Oil & Gas Producers 8,406.16 +1.65%
Technology Hardware & Equipment 722.73 +1.37%
Oil Equipment, Services & Distribution 22,012.76 +1.04%
Automobiles & Parts 4,575.59 +0.88%
Bottom performing sectors so far today
Household Goods & Home Construction 6,438.88 -3.44%
Real Estate Investment Trusts 1,884.15 -2.93%
Beverages 9,976.90 -2.27%
Health Care Equipment & Services 3,250.41 -1.54%
General Retailers 1,603.58 -1.44%