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Share with Brickworks Limited (ASX: BKW) No range was found today and it is as low as $ 23.30. It seemed like a positive start to investors, but by the morning stocks had moved south.
For Brickworks investors, the last three months have been rippling. Stocks bounced off a high of $ 25.93 in late September, a trend that spilled over into this week’s trading.
Let’s take a closer look.
What is this week’s fight against Brickworks stock prices?
Brickworks stock price is below benchmark S & P / ASX200 Index (ASX: XJO) The last few days.
Investors were unresponsive The latest information on the presentation and transactions of the company’s annual shareholders meeting on Tuesday. In it, the company outlined both investment highlights and shareholder challenges.
According to the company, sales in the first quarter EBITDA It is slightly ahead of the previous corresponding period.
However, sales in Sydney and Melbourne, the two largest markets of Brickworks, are Pandemic..
Overall sales of concrete products, including Austral Masonry, were down year-on-year as the business was “exposed to the current weaknesses of the multi-dwelling segment.”
Meanwhile, the construction of a brick facility in Horsley Park, Sydney, is “on track” and is expected to be completed within about a year.
Brickworks recorded a significant increase in sales, but profit margins in its North American business continue to squeeze. It is said that there is cost pressure on the entire supply chain, such as direct production input and transportation.
Labor shortages will increase wage rates to attract and retain staff, and activity in the high-margin commercial segment is expected to remain weak until spring.
The company acknowledged that “there is still work to be done to maximize the potential of this business,” but we are confident that our North American business will improve profitability over the next few years.
What is your outlook?
Regarding the company’s outlook, management noted that sales momentum is improving in Australia. It hopes that activity can continue to rise for the rest of the fiscal year.
In North America, despite continued margin pressure, we expect earnings in 2010 to benefit from the Capital Management and Rationalization Initiative.
This profit will be recorded in the first half of 2010, ranging from $ 375 million to $ 425 million (after tax).
Lindsay Partridge, Managing Director of BrickWorks, said of the company’s outlook:
Pandemics are accelerating the industry trend towards online shopping, which continues to increase the value of industrial property. The annual revaluation process is expected to be completed by the end of the first half of the year, and these trends are expected to further improve revaluation across the portfolio.
In both countries [North America and Australia]There is always a threat of further unpredictable disruption due to pandemics and related supply chain issues. With an even stronger half expected for real estate, WHSP is expected to provide stable growth revenue and dividend flows over the long term.
Brickworks’ share is down 5% a month, but has increased by 15% over the past year. This is after a 21% rise from January 1st, but stocks are well below the five-week high of $ 26.32.
Why is the stock price of Brickworks (ASX: BKW) struggling this week?
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