Sector movers: Tobacco giants burnt as Philip Morris smoked
By Oliver Haill
Date: Thursday 19 Apr 2018
(WebFG News) - Industrial engineering was the leading sector on Thursday, while tobacco stocks were the big fallers.
Shares of British American Tobacco and Imperial Brands were caught in the down-draft from Philip Morris got smokes after its third quarter revenues came in below forecasts. Shares in the US tobacco giant registered their worst single-day share price drop on record, taking 16%.
Philip Morris's first quarter profits fell 2.5% as it pointed to global smoking rates dropping. Total cigarette shipments in the first quarter fell by 5.3% as more and more smokers elect to quit the habit or turn to electronic cigarettes, with shipments to Europe and East Asia in particular decreasing.
Industrial engineering was lifted as engineer Weir Group struck a $1.3bn deal to take over US mining tools manufacturer Esco Corp and reported first quarter orders up 22% amid recuperating end markets. Peers such at Rotork were also lifted.
Esco last year delivered revenues of $632m and a pro forma adjusted earnings before interest, tax and amortisation of $68m, with strong growth in 2018 expected to result in full-year revenues of around $675m.
"Together, Weir Minerals and ESCO will create a unique customer proposition as the premium provider of mission-critical surface mining solutions from extraction to concentration, built on proprietary technology, superior wear life and supported by an unrivalled service network," Weir's chief executive Jon Stanton said.
Top performing sectors so far today
Industrial Engineering 12,714.43 +2.01%
Oil & Gas Producers 9,032.80 +1.61%
Industrial Metals & Mining +1.56%
Electronic & Electrical Equipment +1.21%
Forestry & Paper +1.06%
Bottom performing sectors so far today
Tobacco -4.90%
Personal Goods -1.89%
Fixed Line Telecommunications -1.08%
Gas, Water & Multiutilities -0.95%
Oil Equipment, Services & Distribution -0.49%
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