By Carla Mozee, MarketWatch
Rio Tinto drops after shipment update
U.K. stocks edged higher Tuesday, with ARM Holdings PLC and Sky
PLC gaining following financial updates, but the benchmark FTSE
100's rise was blunted in part by a decline in shares of mining
heavyweight Rio Tinto PLC.
The FTSE 100 was up 0.1% to 7,056.74, limited by an overall 1%
pullback for the mining group. There, Rio Tinto shares were pushed
2.1% lower after the miner said iron-ore shipments fell 12% in the
first quarter
(http://www.marketwatch.com/story/rio-tinto-iron-ore-shipments-set-to-rise-2015-04-21)
to 72.5 million metric tons, from the previous quarter.
But Rio Tinto, the world's second-largest producer of iron ore,
said it's still aiming to meet a previously announced full-year
target of up to 350 million tons.
Also losing ground was iron ore giant BHP Billiton PLC , as its
stock fell 1.2%. Glencore PLC shed 0.2% and Anglo American PLC
.
The mining group on Monday surged
(http://www.marketwatch.com/story/miners-lead-gains-on-ftse-100-as-china-moves-to-stimulate-growth-2015-04-20)
after China enacted another measure aimed at revving up economic
growth. China is a major buyer of metals and other commodities.
Topping advancers on the FTSE 100 was Sky as shares climbed
5.2%. The broadcaster said operating profit in the nine months
ended March 31 rose 20% to GBP1.03 billion year-over-year. Revenue
was up 5% to GBP8.45 billion. Sky said the period was supported by
growth in television subscribers
(http://www.marketwatch.com/story/sky-earnings-up-on-uk-german-subscriber-growth-2015-04-21)
and demand for new services in the U.K. and Germany.
Shares of ARM (ARMHY) jumped 3.5% after the chip designer, whose
technology is found in the majority of the world's smartphones,
said first-quarter revenue rose 22%
(http://www.marketwatch.com/story/arms-profit-lifted-by-strong-smartphone-demand-2015-04-21)
to 227.5 million pounds, higher than the consensus estimate of
GBP224 million. Net profit came in at GBP85 million, up from
GBP62.3 million a year ago.
Back to decliners, Associated British Foods shares fell 3.4%
after the company said it now expects a modest decline
(http://www.marketwatch.com/story/associated-british-foods-pretax-profit-drops-4-2015-04-21)
in adjusted per-share earnings for the full year. AB Foods, which
owns retailer Primark and sugar operations, had previously expected
a marginal decline in adjusted earnings.
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