While the FTSE 100 (FTSEINDICES: ^FTSE) recovers after yesterdays 127-point slide — it’s back up 81 points, or 1%, to 6,789 at the time of writing — not every company gets to take a deep breath and recover.
After releasing results today, several companies are trading down, in one or two cases pretty sharply.
Fresnillo
We’ll start with Fresnillo (LSE: FRES), the leading faller on the blue-chip index, after the share price fell by 92p to 879p on the company’s full-year financials.
The miner, which operates the world’s largest primary silver mine, was significantly impacted by the decline in precious metals prices in 2013. To placate shareholders, the company recommended a special one-off dividend of $50m. That old trick.
In addition, poor performance was attributed to lower gold production, which declined 10%, resulting from a legal dispute over explosive permits at the company’s Minera Penmont operations in Mexico.
In total profit plunged 64% to $419m while revenue fell by 25% to $1.6bn.
In response to this, the chairman Alberto Baillères, commented:
“The Group’s portfolio of profitable mines and development projects is expected to yield returns even in a low metal price environment. This reflects our long-term strategy of conservative organic growth based on a strong commitment to exploration and the development of efficient, low cost, world-class operations located in mining districts we know well.”
Premier Foods
Shares in Premier Foods (LSE: PFD) were down 6% to 132p, after the maker of Mr Kipling cakes, as well as other well known brands such as Ambrosia and Oxo, posted a 12% fall in profit to £140m.
It’s been a topsy-turvy old time for the food producer on account of the company’s liabilities. The shares dropped as low as 34p in 2011 with the market worrying over its debt and pension deficit — £1.3bn — while the rise of discount supermarkets, with their cheap own-brand products, has also done damage.
The firm has launched a capital restructuring plan aimed to “liberate” the group from heavy debt and boost business. £353m is hoped to be raised through a share placing and a rights issue.
Devro
Devro (LSE: DVO)was the second leading faller today when it’s share price tumbled 9% on falling demand for its sausage casing products. The firm had been anticipating higher sales, so will this year cut production to prevent being stuck with goods it can’t shift.
In the UK total sales of sausages fell 5%, attributable to pork prices hitting an all-time high.
