FTSE 100 movers: BHP shines, Smiths looks ill

Miner BHP Billiton helped the FTSE risers in a narrow market after revealing fourth-quarter iron ore production rose 3% and raising 2019 guidance to +3%.

The FTSE 100 major miner said its group copper equivalent production increased by 8% in the 2018 financial year, with annual production records at Western Australia Iron Ore, Queensland Coal and Spence.

It said it expected to achieve full year unit cost guidance at its major assets, based on 2018 financial year guidance exchange rates of AUD/USD 0.75 and USD/CLP 663.

Group copper equivalent production for the 2019 financial year was expected to be broadly in line with the 2018 financial year.

easyJet shares were up as third-quarter revenues rose 14%, despite industrial action in France, prompting the budget carrier to increase its guidance for full-year profits.

The FTSE 100 airline said that the entire industry was facing increased disruption, which was having “an impact on revenue, cost and operational performance”. The main causes were “regular and sustained air traffic control industrial action in France” and severe weather.

As a result, 2,606 easyJet flights were cancelled in the period against 317 in the same three months in 2017. Capacity increased 8.9%, to 26.2m seats, which was lower than planned.

Yet despite the turbulent conditions, total revenues improved 14% over the quarter, to £1.6bn, while passenger numbers rose 9.3% to 24.4m. EasyJet said it had been helped by a weak performance at rivals as well as the timing of public holidays in May and an 11.5% rise in ancillary revenue per seat at constant currency, as more customers paid to have allocated seating and put bags in the hold.

Going the other way, Ladbrokes owner GVC Holdings fell despite announcing a not-unsurprising boost from the World Cup in recent weeks that helped growth accelerate in the third quarter. Helped by 11% growth in the second quarter, group net gaming revenue grew 8% in the first half.

Helped by growth speeding to 11% in the second quarter from 7% in the first, group net gaming revenue grew 8% in the first half.

Smiths Group tumbled despite reporting a return to growth with underlying revenue for the 11 months to 30 June up 3%. All divisions were expected to be in-line with full-year expectations, except for a fall for Smiths Medical amid a suspension of some products ahead of new EU 2020 regulations.

“In advance of the new EU Medical Device Regulation in 2020, one of Smiths Medical's European Notified Body service providers has been decertified for some products,” the Smiths board explained.

“This has led to the temporary suspension of some of Smiths Medical's products in Europe.”

As a result of that, and the termination of two contracts in the US, the division was now expected to deliver a 2% decline in revenue for the full year, with margins similar to the first half.

Market Movers

FTSE 100 (UKX) 7,674.65 0.63%

FTSE 100 - Risers

Scottish Mortgage Inv Trust (SMT) 560.72p 2.23%
CRH (CRH) 2,739.00p 2.20%
Kingfisher (KGF) 315.85p 2.15%
Hargreaves Lansdown (HL.) 2,087.00p 2.05%
BHP Billiton (BLT) 1,657.00p 2.03%
Schroders (SDR) 3,240.00p 1.89%
Prudential (PRU) 1,768.00p 1.78%
ITV (ITV) 175.50p 1.77%
Croda International (CRDA) 5,048.00p 1.71%
Halma (HLMA) 1,388.77p 1.67%

FTSE 100 - Fallers

Smiths Group (SMIN) 1,594.00p -8.89%
Royal Mail (RMG) 464.10p -5.19%
GVC Holdings (GVC) 1,080.50p -2.39%
Severn Trent (SVT) 1,876.00p -1.13%
Centrica (CNA) 154.20p -0.96%
RSA Insurance Group (RSA) 634.40p -0.88%
DCC (DCC) 7,090.00p -0.70%
National Grid (NG.) 839.70p -0.66%
Associated British Foods (ABF) 2,410.00p -0.62%
Sainsbury (J) (SBRY) 326.70p -0.58%