FirstGroup (LSE: FGP) falls, and Clarkson (LSE: CKN) issues a profit warning.
The FTSE 100 (UKX) is on the up again, adding a modest 18 points to further the week's rise so far to 5,903 points. Will it keep its head above the 5,900 level? Well, the actual figure doesn't really matter, but a strong spell could help boost confidence for the longer term.
Individual constituents of the various indices falling doesn't help, of course. We look at three that are dropping today...
FirstGroup
FirstGroup (LSE: FGP) shares are down again after a recent mini-recovery, dropping 8.6p (4.2%) to 197p on the release of half-year figures. Things are largely going as expected, we were told, as underlying pre-tax profit fell 42% to £48.7m -- reported pre-tax profit slumped to £8.4m, but that was heavily distorted by a pension fund boost last year and exceptional costs this year.
The travel operator declined to raise its interim dividend due to uncertainty caused by the West Coast main line fiasco, holding it at 7.62p per share. FirstGroup shares are approximately 40% down on the year, with about half of that fall coming as a result of the aborted franchise bid.
Clarkson
Shipping services group Clarkson (LSE: CKN) issued a profit warning today, causing a 110p (8.5%) fall in its share price to 1,190p. The firm is apparently suffering from falling freight rates and lower asset prices, telling us that "(t)he short-term outlook for rates and values is uncertain".
The result is a lowering of the board's expectations for the full year, though we were not given any figures. Prior to today, the City was forecasting a 28% fall in earnings per share this year.
If you want to avoid falling shares like these, the Motley Fool report “8 Shares Held By Britain's Super Investor” should help. The free report takes a look at some of the major holdings of ace UK investor Neil Woodford, who has consistently beaten the FTSE. Click here to get your copy, while it's still available.
RPS
RPS Group (LSE: RPS) fell 11.2p (4.7%) to 227p on the day the resources, land and property consultant announced that nine-month performance is well ahead of the same period last year. The firm is also, we were told, on track to meet the board's full-year expectations. So why the fall?
RPS's Built and Natural Environment division is facing tough conditions, and broker forecasts have been downgraded a little. Before today, analysts had the shares on a forward price-to-earnings ratio of around 12, with a 2.7% dividend forecast, making the price fall look possibly unfair.
Which are the best sectors to invest in if you want to avoid falling shares? That's what we asked the Motley Fool's top analysts, and you can see how their picks have fared so far this year by reading their report. It's free, so click here to have a copy sent direct to your inbox while it's still available.
Further Motley Fool investment opportunities:
> Alan does not own any shares mentioned in this article.
