Adelaide Brighton shares plunge to 12 month low on earnings weakness

Adelaide Brighton shares have copped a drubbing, down more than 9 per cent to a 12-month low after the company downgraded its earnings guidance.

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Adelaide Brighton shares have copped a drubbing, down more than 9 per cent to a 12-month low after the company downgraded its earnings guidance.

The building products maker said it expected underlying net profit after tax, excluding property sales, for the year ending December 31 to be between $188 and $195 million, compared with $190.3 million the prior year.

The previous guidance, given on August 22, was for the figure to be in the range of $200-$210 million.

“While performance of the business has generally been pleasing, a number of factors have led to demand in the second half being slightly lower than anticipated,’’ managing director Martin Brydon said.

Martin Brydon, Adelaide Brighton managing director.

“The ramp up in a major South Australian infrastructure project has been slower than

expected in the current year, however overall project volumes are on forecast.

“A slower than expected start to the historically busier second half of the year in the construction market in Western Australia and recovery from the earlier adverse weather conditions in the east coast markets has not been as strong as expected.

“It’s pleasing that demand has supported price improvement across our product range, plus further costs savings from the Company’s operational improvement program, have supported earnings for the period.”

The stock was trading at $4.65, down 49c at about 10.30am.

AdBri shares have traded as high as $7.02 in the past year.

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