Shares in the usually reliable Diploma (DPLM) tanked 9 per cent after the specialist components distributor warned its top and bottom line had been impacted by sluggish oil and European industrial markets.
IC TIP:
Hold
at
650p
After stripping out acquisition costs and currency headwinds, revenue growth is now expected to be a more modest 1 per cent. That's likely to hurt profits, together with a facility closure and relocation in US Seals, the division that supplies hydraulic seals, gaskets and other components for heavy mobile machinery and industrial equipment. As a result, management said it expected underlying operating margins to tighten by about 50 basis points.
