Sector movers: Drinks firms lack fizz

27th Aug 2009 12:35

The beverages sector is helping to pour cold water on the recent market rally after spirits giant Diageo cut its growth targets.The group, which owns the Smirnoff, Captain Morgan and Guinness brands, said pre-tax profit fell £78m to £2.015bn in the year ended 30 June on underlying sales little changed at £9.3bn.'While the global economy appears to be stabilising, there is still uncertainty as to the sustainability and pace of any recovery and F10 will be challenging, as we lap a strong first quarter and a reasonable first half performance this year,' said chief executive Paul Walsh. 'That being recognised, we expect to deliver low single digit organic operating profit growth in fiscal 2010.'It had hoped for between 4% and 6% previously.Vimto maker Nichols and Miller firm SABMiller are also looking a bit flat, but Magners cider group is fizzing after announcing the acquisition of Anheuser-Busch InBev's Scottish and Irish businesses, including the Scottish brands.Engineer IMI is leading the industrial engineering sector higher after it reported better-than-expected first-half results and said underlying levels of demand appear to have stabilised.'We are not assuming any improvement in general economic conditions during the second half but, as and when it materialises, we are well placed to benefit given the restructuring already undertaken and the further expansion of our low cost manufacturing capabilities,' said chairman Norman Askew.Top performing sectors so far todayHealth Care Equipment & Services 2,927.43 +3.34%Industrial Engineering 3,319.18 +2.96%Forestry & Paper 3,115.08 +1.47%Pharmaceuticals & Biotechnology 8,405.78 +1.33%Gas, Water & Multiutilities 3,689.94 +0.88%Bottom performing sectors so far todayBeverages 6,865.01 -2.74%Real Estate 1,992.68 -2.24%Automobiles & Parts 2,555.51 -2.06%Electronic & Electrical Equipment 1,396.74 -1.51%Industrial Metals 4,490.42 -1.42%