LONDON -- The FTSE 100
Of course, individual company shares often fall for good reasons. Here are three that are sliding and look set to lag the FTSE today/
Melrose shares crashed this morning, falling 11.6% to 209 pence after the firm warned of an uncertain outlook for 2013. The FTSE 100 engineering group told us of a slowdown in sales and a weakening order intake, particularly within its energy businesses.
Melrose, which buys underperforming small companies with a view to turning them round and selling them, is still expecting its performance this year to meet expectations, but analysts will now surely be rushing to downgrade their 2013 forecasts.
Lavendon slumped 7.7% to 128 pence after owning up to a weaker third quarter. Although the group's full-year performance should be in line with expectations, trading activity within some of the firm's key divisions appears to be suffering from the current hard economic times.
If this is a short-term blip, we could be looking at an oversold share price now. The latest price puts the shares on a price-to-earnings ratio of only a little more than 10.
Ultra Electronics lost 2.75% to 1,487 pence after the defense contractor issued a profit warning and announced the departure of finance director Paul Dean. Due to "adverse market conditions in the defense sector," the full-year performance is now expected to be only in line with 2011 figures.
Prior to today, City analysts had been forecasting pre-tax profit of around 110 million pounds. But with 2011's figures coming in at just 91 million pounds, the downgrades will be quite large.
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