Sector movers: Industrials lower as Smiths Group underwhelms

19th Nov 2013 15:10

An underwhelming first-quarter update from Smiths Group meant that the general industrials sector was one of the worst performing categories on Tuesday.The company, which works in the threat & contraband detection, medical devices, energy, communications and engineered components markets, said that trading had been in-line with expectations in its fiscal first quarter.The group, which surprised the market with a profit warning in July due to contractual issues in its Detection unit, said revenue and headline operating profit in the three-month period to November 2nd have both grown on an underlying and reported basis.Expectations for the year remain broadly in line with expectations, although foreign exchange translation is expected to be a headwind at current rates, it cautioned, and sales to government-funded customers remain a risk.The stock was down 2.3% at 1,400p before the close of trade.As Investec analyst Michael Blogg explained, Smiths Group's trading update is best described as mixed, with profit improvements in three divisions (John Crane, Detection and Flex-Tek) offsetting lower performance in two (Medical and Interconnect)"."The tone of the divisional comments suggests that 'broadly in line' means below and we shall attempt to quantify the scale of any adjustment. Our estimates, target price and recommendation are under review," he said.Others in the sector including Straight, Rexam, British Polythene Industries and DS Smith were also trading in the red this afternoon.Top performing sectors so far todayIndustrial Transportation 3,234.95 +0.72%Electronic & Electrical Equipment 4,194.58 +0.39%Pharmaceuticals & Biotechnology 11,406.70 +0.13%Household Goods & Home Construction 10,892.26 +0.09%Software & Computer Services 1,109.97 +0.09%Bottom performing sectors so far todayIndustrial Metals & Mining 1,406.72 -1.83%General Industrials 4,277.26 -1.43%Forestry & Paper 10,911.39 -1.17%Media 6,265.97 -1.06%Life Insurance 6,595.20 -1.02%BC